Railroad Week in Review:
Third Quarter 2008
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in Review, 7/4/2008
Notes from NS' 7th Annual short line meeting. MMA victim of shifting
supply chain trends; lessons for others. RW Baird's Langenfeld on trucking
outlook. Fuel tidbits.
in Review, 7/11/2008
Wadewitz of JPM pens some thoughtful and useful lines on the recent
STB CSX-DuPont "small rate" case. Why gurufocus.com is loaded
with the stuff every railroad manager ought to watch very closely. New
Pan Am Southern log park in Mechanicville: good or bad for short lines?
in Review, 7/18/2008
CSX leads off the second quarter earnings season with a 17% yoy ops
income gain on 15% more revenue and just 14% greater ops expense. The
CSX Boardroom drama unfolded a bit more as the TCI forces seem to have
captured four of the five board seats they were seeking. Genesee &
Wyoming Q2 carloads were essentially unchanged yoy.RMIs
RailConnect Index for YTD through Week 26 (June 28). Investors Business
Daily (IBD) says that at the end of this years first half, railroad
stocks ranked No. 14 among the 197 industry groups it follows. Watco
celebrates its 25 Anniversary this month.
in Review, 7/25/2008
We polished off the Big Six earnings calls this week and it was clearly
a tale of two houses: the US roads did exceptionally well; the Canadians
had their challenges. Across the board, pricing is holding up and roads
are using the lull in revenue units to get their houses in order. Summary
tables at end.
In Review, 8/1/2008
Kansas City Southern brings up the markers for the Class I Earnings
Season with a very respectable 26% operating income gain. Roger Nelson
on how the interstate highway system changed the railroad industry.
The Central Oregon & Pacific Railroad (CORP) seeks permission to
abandon ownership of the Coos Bay rail line. Steel scrap dealers up
in arms over a proposed AAR rule change for open-top gons. Economic
Planning Associates raises 2008 estimate of rail car deliveries to 54,000
units. RailTrends Expo reminder.
in Review, 8/8/2008
GWR posts strong 2Q08 results, buys Ohio Central system for less than
8x forward ebitda. Livonia, Avon & Lakeville Railroad Corp of Lakeville,
NY reorganizes under new Board of Directors. The scrap steel saga from
last week continues. Larry the K holds forth on entitlements. Though
revenue unit counts may have been off, revenue ton-miles were not; who
cares and why?
in Review, 8/15/2008
Rail stocks sell off but Wall Street takes it as a lull. Why short lines
need to be more aggressive about sharing in the rate increases. How
to stay ahead of how much the Class I is charging for any commodity-OD
pair. Rounding out the scrap metal carload thread. Book reviews. RailTrends
in Review, 8/22/2008
What to expect from Week in Review. Tracking your results against the
larger community. Short line carloads for Week 31; three leading commodity
groups. How NS illustrates the "trend is your friend" rule.
insights from Ed Wolfe. P&W second quarter reflects strong carload
Dahlman Rose Global Transportation Conference in NY Sep 10-11.
- Week in Review
No Week in Review. I'm out riding trains.
in Review, 9/5/2008
ASLRRA's Rich Timmons provides some sobering thoughts on the economy.
The short line solution. Wild Cards in the economic outlook. The cost
of the kindness of strangers. "Firm Value" as a call option
on a short line's assets. Rick Paterson on earnings drivers apart from
in Review, 9/12/2008
Economic outlook from Charles Schwab & Co Chief Investment Strategist.
STB turns down CN request for expedited process on the J. Week 35 rail
traffic remains soft; short lines share the funk. Two GWR lines get
FRA grants. California's Richmond Terminal RR doing well thanks to high
density. CP's Kathryn McQuade to CFO.
in Review, 9/19/2008
Why the present credit crunch will limit marginal short lines' access
to working capital. A walk through a sample shortline balance sheet
-- worth more dead than alive? A time to buy railroad stocks? Dahlman-Rose
financial conference take-aways. Rick Paterson on the relationship between
fuel price and rail earnings. Pacific Harbor Lines completes loco fleet
conversion to 100% low-emission units.
in Review, 9/26/2008
Some thoughts on why it's not pretty out there and where railroads might
take the hits. A brighter view from Rick Paterson at UBS. Ed Wolfe sees
rails "unaffected" though marginal operations may be in for
it. Encouraging words re outlooks for UP, CSX, NS. Week 37 carload analysis
ex-intermodal. Why CSX scores well with short lines. How high oil prices
affect supply chain patterns and how the rails can take advantage. Shortline