WASHINGTON – The Occupational Safety and Health Administration today published a final rule finalizing procedures for handling whistleblower retaliation complaints filed under Section 806 of the Sarbanes-Oxley Act of 2002. The SOX Act protects employees who report fraudulent activities and violations of Securities Exchange Commission rules that can harm investors in publicly traded companies.
“Silencing workers who try to do the right thing is unacceptable,” said Assistant Secretary of Occupational Safety and Health Dr. David Michaels. “This final rule safeguards investors by protecting whistleblowers who shine a light on illegal or fraudulent conduct that otherwise may go uncorrected.”
SOX prohibits publicly-traded companies, nationally recognized statistical ratings organizations, and other covered persons from retaliating against an employee who provides information about conduct that the employee reasonably believes violates federal mail, wire, bank or securities fraud statutes, SEC rules, or any provision of federal law relating to fraud against shareholders.
Workers can file a complaint with OSHA if they believe that their employer has retaliated against them for exercising their rights under SOX. OSHA’s Whistleblower Protection Programs Web page provides instructions on how to file a complaint and information on worker rights and protections.
OSHA enforces the whistleblower provisions of SOX and 21 other statutes protecting employees who report violations of various workplace, commercial motor vehicle, airline, nuclear, pipeline, environmental, railroad, public transportation, maritime, consumer product, motor vehicle safety, health care reform, food safety and consumer financial reform regulations. Additional information is available at http://www.whistleblowers.gov.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.
LOS ANGELES – Perhaps the most remarkable thing about the collision between a Southern California commuter train and a truck abandoned on the tracks was this: No one died and only eight people on board were admitted to hospitals.
Officials with the Metrolink train system credit cars designed to blunt the tremendous force of a head-on collision.
Legislation requiring two-person railroad crews in the states of Nebraska and Wyoming have been introduced in the respective state legislatures. Nebraska State Legislative Director Bob Borgeson reports that state Legislative Bill 192, legislation requiring freight train crews in the state to consist of at least two persons, has been introduced in the Nebraska Legislature by seven state senators. The bill introduces fines of $100 for the first offense, $250 for the second offense within three years, and $500 for all subsequent offenses committed by a rail management within a three-year period. “No train or light engine used in connection with the movement of freight may be operated unless it has a crew consisting of at least two individuals. For purposes of this section, train or light engine used in connection with the movement of freight does not include hostler service or utility employees,” a portion of the bill reads. The senators co-sponsoring the bill were Al Davis (Dist. 43), Mike Groene (Dist. 42), Ken Haar (Dist. 21), Sara Howard (Dist. 9), Rick Kolowski (Dist. 31), John Kuehn (Dist. 38) and John Stinner (Dist. 48). Wyoming State Legislative Director Stan Blake reports that Senate File S.F. 0076, an act requiring freight trains in the state to be operated by a crew of not less than two persons, has been introduced in the Wyoming Legislature by three state senators and a state representative. The act states “no railroad train or light engine used in connection with the movement of freight shall be operated in this state unless the train has a crew of at least two (2) individuals. As used in this section, ‘train or light engine’ does not include hostler service or utility employees.” If passed, the legislation would take effect July 1, 2015. It was sponsored by State Sens. Fred Emerich, Wayne Johnson and Chris Rothfuss and State Rep. Dan Zwonitzer.
Members of the SMART Transportation Division’s Washington State Legislative Board have been quite busy in recent weeks. Working with the board members and state emergency management officials, state senators and representatives of the Washington State Legislature Jan. 29 introduced six bills that could have a direct impact on Transportation Division-represented railroad employees and the safety of the communities in which their trains operate. House Bill 1809 and Senate Bill 5697 re-establish state-mandated minimum railroad crew-staffing levels on all trains operating in the state. Also introduced were a yardmaster hours of service bill in both the House of Representatives and the Senate and a rail crew transportation safety bill. Under the proposed crew-staffing legislation, all trains and yard-switching assignments will be staffed with no less than two qualified employees. Trains designated as hazardous material trains of 50 cars or less, will be staffed with no less than three qualified employees, with the thirdemployee assigned to work on the rear of the train in a position to be able to safely observe and monitor the train. Trains designated as hazardous material trains of 51 cars or more will be staffed with no less than four qualified employees, with two employees assigned to work on the rear of the train in a position to be able to safely observe and monitor the train. Hazardous material trains are defined utilizing the current national standards adopted by Department of Transportation and all Class I carriers. The State Utility and Transportation Commission can direct carriers to exceed the minimum requirements if specific conditions affecting safety or security necessitate additional crewmembers. Hearings on both bills have been tentatively scheduled for Feb. 9 in the House Labor Committee and the Senate Commerce and Labor Committee, Transportation Division Washington State Legislative Director Herb Krohn said. “Our workers know how to run these trains safely, but the railroad refuses to provide adequate staffing, exposing the public and railworkers to death and injury. These bills simply restore Washington State’s commonsense safety standards,” Krohn said. “We looked at what went wrong in each of the catastrophic explosions and the close calls, and it’s clear that one or two people simply can’t monitor and safely operate these dangerous cargos. Adding even one more person to a train, particularly at the back of the train, will save lives.” H.B. 1809 was introduced by State Rep. Larry Haler (R-Richland) and currently has a total of 33 additional co-sponsors. House Transportation Committee Chairman Judy Clibborn (D-Mercer Island) said, “This bill just requires a minimum level of staffing because an adequately staffed train is a safe train.” S.B. 5697 was introduced by State Sen. Linda Evans Parlette (R-Wenatchee), Chairman of the Senate Majority Caucus. It currently has 23 additional co-sponsors. “Safely moving goods through Washington State is in everyone’s interest. The public is counting on us to ensure that trains, no matter what they are transporting, are safely operated,” Evans Parlette said. “I’ve worked as a conductor for 10 years with a perfect safety record and this bill will make trains safer,” said Local 324 Chairperson and Legislative Rep. Paul McGill of Seattle. The text of the bills read, in part, “Any person, corporation, company, or officer of the court operating any railroad, or part of any railroad or railway within the state of Washington, and engaged as a common carrier, in the transportation of freight or passengers, who violates any of the provisions of section 3 of this act are guilty of a misdemeanor, and upon conviction shall be fined not less than one thousand dollars and not more than one hundred thousand dollars for each offense.” Krohn said the bills are in response to concerns raised by emergency management officials who have become aware that the crewmembers on the head end of trains, in most cases, cannot see their train beyond a limited sight distance. Recognizing that the train crews are the first responders, they believe that trains that pose a significant risk to the public need crewmembers on the rear of the train, in a position to be able to see the train and take appropriate action if something goes wrong. Krohn said he attended a freight mobility roundtable discussion last year featuring a presentation on oil-train safety from emergency responders. “Not aware of who I was, Director of the Seattle Office of Emergency Management Barb Graff mentioned the BNSF Railway one-person crew contract proposed to the members of General Committee of Adjustment GO 001 last year. She said she was glad that it was voted down and said two-person crews were not enough on hazmat trains.” That led to Krohn and members of the state legislative board working with emergency management officials to get the ball rolling on the two bills. “As an emergency manager, I plan for disaster and work for safety. Human eyes are key to safety and proper staffing is important, which is why I support this bill,” said Dominic Marzano, emergency manager for Kent, Wash., and division chief of the Kent Fire Department – Regional FireAuthority. Noting that railroad yardmasters are required to work excessively long hours by railroad carriers, H.B. 1284and S.B. 5696 will prohibit a yardmaster to “remain or go on duty for a period in excess of twelve consecutive hours…An employee may not remain or go on duty unless that employee has had at least ten consecutive hours off duty during the prior twenty-four hours.” If the state’s Utilities and Transportation Commission finds that a Class I carrier violates the provisions of these bills, if passed, “the commission may assess a civil penalty of not less than ten thousand dollars and not more than fifty thousand dollars.” Krohn said that yardmaster and BNSF GO 341 General Chairperson Jeffrey Sellman was the impetus behind these bills and worked tirelessly to advance them in the legislature. Finally, H.B. 1808 and S.B.5797 will, if passed, “regulate charter party carriers providing railroad crew transportation and every contract crew hauling vehicle with respect to the safety of equipment, driver qualifications, insurance levels, and safety of operations. The commission must adopt rules and require reports as necessary to carry out this chapter regarding contract crew hauling vehicles and establish federal motor vehicle safety standards for contract crew hauling vehicles, regardless of seating capacity, as the minimum safety standards.” “I am really excited about how we’ve advanced these bills in the legislature,” Krohn said. “They are reasonable bills that won’t break the bank of the railroads. They are a reasonable precaution to protect the public and our members.” Krohn encourages Transportation Division members and all concerned railroad employees to contact their lawmakers and seek their support of these legislative proposals.
The Transportation and Infrastructure Committee Feb. 12 unanimously approved bipartisan legislation that improves the infrastructure, reduces costs, creates greater accountability and transparency, leverages private sector resources, and accelerates project delivery for Amtrak and the nation’s passenger rail transportation system. The Passenger Rail Reform and Investment Act of 2015, or PRRIA (H.R. 749), was introduced by Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.); T&I Ranking Member Peter DeFazio (D-Ore.); Railroads, Pipelines, and Hazardous Materials Subcommittee Chairman Jeff Denham (R-Calif.); and Subcommittee Ranking Member Michael Capuano (D-Mass.). “We thank the Chairman Shuster for his leadership on moving this legislation forward and support passage of the bill in the full House. We still have concerns that the bill does not provide Amtrak with the funding levels it needs to make needed repairs and upgrades to an aging system. That being said, the introduction and markup of this legislation is an important first step in bringing long-term stability and investment to Amtrak,” said SMART Transportation Division National Legislative Director John Risch. “This is a good reform bill that firmly moves passenger rail towards greater transparency and accountability, and forces Amtrak to operate like a true business,” Shuster said. “In every region of the country, passenger rail investments boost local economies and create thousands of family-wage construction, engineering, and manufacturing jobs. This bill isn’t perfect – but it was a bipartisan effort that ultimately provides critical investments and system wide improvements to increase capacity and make our railways safer,” said DeFazio. “Passage of the Passenger Rail Reform and Investment Act is an investment in our infrastructure that will make Amtrak operate more like a business – better responding to the needs of its customers and focusing on efficiency, transparency, and cost-saving,” Denham said. “I’m proud of the bipartisan unanimous support we’ve garnered for this bill and look forward to seeing PRRIA move to the House floor.” “Making investments in passenger rail service not only creates economic benefits and employment opportunities, it also enhances the overall experience for passengers and improves safety,” said Capuano. “This legislation may not represent the level of funding I think is necessary, but most rail supporters agree that in today’s political climate it is the most that advocates can expect.” Passenger rail presents one of the best transportation alternatives for relieving congestion on some of the nation’s most crowded highways and in our busy airspace. However, the rail system and Amtrak – the country’s intercity passenger rail provider – must be reformed and improved. For years, Amtrak has operated under unrealistic fiscal expectations and without a sufficient level of transparency. Profits from Amtrak’s most profitable route – the Northeast Corridor (NEC) – currently are not invested back into the corridor. And although significant ridership increases are occurring on Amtrak’s state-supported routes, its inconsistent financial structure and “black box” accounting system hamper states’ ability to help manage the routes and understand what exactly it is they’re paying Amtrak for. In addition, rail infrastructure projects are unnecessarily delayed by unwieldy review processes that cost time and money, and current law that limits the ability to partner with the private sector holds back the development of the system. During today’s legislation markup, the Committee also approved 12 General Services Administration Capital Investment and Leasing Program resolutions that will result in $111 million in taxpayer savings, and the Fiscal Year 2016 Budget Views and Estimates of the Committee.
The nation’s four major railroads are still carrying less freight than they were before the recession. But the last decade has been an exhilarating ride for them nonetheless — an era of growing profits, soaring stock prices and ambitious investments.
For Jacksonville-based CSX Corp., freight volume has dropped 7 percent since 2004. Meanwhile, its shares have climbed to $35 from less than $6, and its net income has risen 450 percent, to almost $1.9 billion in 2013, according to SEC filings.
WASHINGTON – Transportation fatalities in the United States decreased by 3 percent in 2013 from 2012, according to preliminary figures released today by the National Transportation Safety Board.
Fatalities in all modes of transportation totaled 34,678 in 2013, compared with 35,796 in 2012. Deaths in marine, aviation, highway and pipeline transportation decreased, although there was a rise in rail deaths.
“While this decrease represents a good trend, much more work needs to done, because 35,000 deaths is very troubling,” said NTSB Acting Chairman Hart. “NTSB continues to address safety issues in all modes to reduce deaths and injuries on our roads, rails and waterways, as well as in our skies.”
The 2013 statistics show:
U.S. roadway deaths, which account for nearly 94 percent of all transportation deaths, decreased from 33,782 in 2012 to 32,719 in 2013. Fatalities on buses were up from 39 in 2012 to 48 in 2013.
Railroad deaths increased 6 percent from 840 to 891. The vast majority of these fatalities continue to be trespassers struck by trains.
Aviation deaths decreased from 451 to 443. Nearly 87 percent of aviation fatalities occurred in general aviation accidents (387), a decrease from the previous year (440). In 2013, air taxi fatalities increased significantly from nine in 2012 to 27.
Marine deaths also dropped in 2013, from 711 to 615. The vast majority of the fatalities, (560), occurred in recreational boating which also decreased.
Aviation statistics are tracked and compiled by the NTSB. The U.S. Department of Homeland Security provides marine statistics, and the U.S. Department of Transportation provides statistics for all other modes.?
Statistical Tables
2012–2013 U.S. Transportation Fatalities
2012
2013 (footnote1)
Highway:
Passenger cars
12,361
11,977
Light trucks and vans
9,418
9,155
Pedestrians
4,818
4,735
Motorcycles
4,986
4,668
Pedalcycles (footnote 2)
734
743
Medium and heavy trucks
697
691
Buses
39
48
Other (footnote 3)
729
702
Total, Highway
33,782
32,719
Grade Crossings: (footnote 4)
(230)
(231)
Rail:
Intercity (footnote 5) —
Trespassers and nontrespassers
(footnote 6)
490
520
Employees and contractors
19
20
Passengers
5
6
Transit (footnote 7)—
Light, heavy, and commuter rail
326
345
Total, Rail
840
891
Marine:
Recreational boating
651
560
Cargo transport
9
13
Commercial fishing (footnote 8)
34
24
Commercial passengers
17
18
Total, Marine
711
615
Aviation:
General aviation
440
387
Airlines
0
9
Air taxi
9
27
Commuter
0
6
Foreign/unregistered (footnote 9)
2
14
Total, Aviation
451
443
Pipeline:
Gas
9
9
Liquids
3
1
Total, Pipeline
12
10
Total
35,796
34,678
1 Numbers for 2013 are preliminary estimates. Aviation data are from the NTSB; marine data are from the U.S. Department of Homeland Security; all other data are from the U.S. Department of Transportation (DOT).
2 Includes bicycles or other cycles.
3 Includes vehicle non-occupants other than pedestrians and occupant fatalities in other vehicle types, such as farm or construction equipment.
4 Grade crossing fatalities are not counted as a separate category for determining the grand total because they are included in the highway and rail categories, as appropriate.
5 Data reported to Federal Rail Administration (FRA).
6 Includes persons on railroad property without permission (trespassers) and with permission, such as repair personnel (nontrespassers). Does not include motor vehicle occupants killed at grade crossings.
7 Data reported to Federal Transit Administration (FTA). Fatalities for commuter rail operations may also be reported to the FRA and may be included in the intercity railroad fatalities.
8 Refers to operational fatalities.
9 Includes non-U.S. registered aircraft involved in accidents in the United States.
WASHINGTON – U.S. Secretary of Labor Thomas E. Perez issued the following statement on the department’s Bureau of Labor Statistics report released today on union membership in 2014: “Today’s report confirms what we’ve always known: that belonging to a union makes a powerful difference in people’s lives, providing greater economic security and helping them punch their ticket to the middle class. “The 2014 BLS data show that among wage and salary workers, those in a union have median weekly earnings of $970, compared to $763 for those not in a union. That’s not pocket change – it amounts to greater than $10,000 a year more for union members. There is also a smaller gender pay gap for unionized workers – women who are in a union come closer to parity with their male counterparts than do non-union women. The report also finds that the union membership rate was 11.1 percent last year, 35.7 percent for public-sector workers. “The economy is resurgent, with an unemployment rate well below 6 percent and job growth we haven’t experienced since the late 1990’s. The challenge we face now is creating shared prosperity, ensuring that our growing economy works for everyone. To do that, we need to turn up the volume on worker voice. “There is a direct link throughout American history between the strength of the middle class and the vitality of the labor movement. It’s not a coincidence. When unions are strong, working families thrive, with wages and productivity rising in tandem. But when the percentage of people represented by unions is low, there is downward pressure on wages and the middle class takes it on the chin. “President Obama said in the State of the Union that middle-class economics requires ‘laws that strengthen rather than weaken unions, and give workers a voice.’ That means protecting and strengthening collective bargaining rights, and it also means exploring new organizing strategies and other innovative approaches to empowering workers in a modern economy. “Across the country at the grass-roots level, workers and their advocates are doing just that. Whether it’s auto workers emulating the German works council model, or the dynamic movement of fast-food workers seeking a raise, or efforts by taxi drivers and home health care workers to stand up for their rights, we are seeing more people seeking creative ways to make their voices heard. “Doing so can and must be done in collaboration with employers. We reject the old false choice and zero-sum thinking – the kind that suggests either workers or their employers can thrive, but not both. Unions succeed not at the expense of business, but in partnership with business. Forward-looking employers recognize that they can give their workers a voice while giving their bottom line a boost. “To maintain robust economic growth, to create more shared prosperity and a better life for millions of middle-class families, we need full-throated worker voice.”
In a press release Jan. 13, CSX announced record fourth-quarter and full-year financial results for revenue, operating income, net earnings and earnings per share. Net earnings for the railroad saw a 15 percent increase from $426 million from the same quarter last year to $491 million for the fourth quarter of 2014.
Revenue for the fourth quarter saw a five percent increase to $3.2 billion. Operating income also saw an increase of 11 percent to $901 million for the quarter, while operating ratio improved 140 basis points to 71.8 percent.
For the full year of 2014, CSX produced new all-time records for revenue of $12.7 billion, operating income of $3.6 billion, net earnings of $1.9 billion and earnings per share of $1.92. Operating ratio remained stable at 71.5 percent.
“CSX is capturing broad-based market strength, completing strategic infrastructure projects and adding resources to further improve service performance and leverage growth opportunities,” said Michael J. Ward, chairman, president and CEO of CSX. “Building on a foundation of strong safety and customer service, we expect to continue growing our intermodal and merchandise businesses faster than the economy, pricing above inflation and driving efficient asset utilization.”
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.
Union Pacific railroad reports an increase in profits for the fourth quarter 2014 over the fourth quarter of 2013. UP reported a net income of $1.4 billion or $1.61 per diluted share, up 27 percent over last year’s $1.2 billion or $1.27 per diluted share for the same quarter, an all-time quarterly record for the railroad.
Operating income and operating ratio also made all-time quarterly records. Operating income totaled $2.4 billion, up 20 percent and operating ratio was up 3.6 points to 61.4 percent. Operating revenue also increased nine percent to $6.2 billion.
“Union Pacific achieved record quarterly financial results, driven by strong volumes, solid core pricing and productivity gains,” CEO Jack Koraleski said. “Robust volumes challenged our network for much of the year, and we remained focused on adding the necessary resources to safely improve service. We are encouraged with the progress we are making.”
Full year records were also set with diluted earnings per share, operating revenues, operating income and operating ratio.
Full year net income came in at $5.2 billion or $5.75 per diluted share over last year’s $4.4 billion or $4.71 per diluted share in 2013, 18 and 22 percent increases respectively. Operating revenue totaled a record $24.0 billion versus the $22.0 billion of 2013. Operating income saw an 18 percent increase to $8.8 billion.
“With 2014 behind us, we’re intently focused on the year ahead,” Koraleski said. “We’re entering the year well-resourced and we’re looking forward to safely providing efficient, value-added service for our customers, and increasing returns for our shareholders in 2015.”
Canadian Pacific railway announced the lowest quarterly operating ratio in the company’s history and records set in net income, operating ratio and earnings per share for the fourth quarter of 2014.
The railway saw a 10 percent increase in revenues to an all-time high of C$1.76 billion. Net income rose to a record C$451 million or C$2.63 per diluted share. Operating ratio also saw a record 59.8 percent. Adjusted earnings for the fourth quarter jumped to C$460 million or C$2.68 per share over last year’s C$338 million or C$1.91 per share.
“I am proud of the team at CP, which continues to build momentum as we exited the year with double-digit revenue growth and a sub-60 operating ratio, proving again our ability to control costs while growing the top line,” CEO E. Hunter Harrison said. “In just two short years, CP has transformed from an industry laggard into a railway leader, and achieved its ambitious 2016 targets two full years ahead of schedule.”
CP also saw new records with their 2014 full-year results. Revenue climbed eight percent to an all-time high of C$6.62 billion for the railway, while operating ratio fell to a record 64.7 percent, a 520-basis point drop on an adjusted basis. Reported earnings per share rose 71 percent to a record C$8.46 while adjusted earnings per share also climbed 32 percent to C$8.50 for the year.
“CP’s remarkable transformation has allowed it to exceed its operational and financial goals for 2014, positioning the company to be nimble in the near-term and successful in the long run,” Harrison said. “CP fully recognizes the impact of short-term volatility in commodity prices, but given the diversity of its business and proven ability to control costs, we’re confident in our ability to execute on our plan going forward. We are just getting started.”
Kansas City Southern reports a record fourth quarter and record financials for the full year of 2014. The railroad saw record fourth quarter revenues of $643 million, an increase of four percent, with carload volumes five percent higher than in the fourth quarter of 2013.
Operating income saw a nine percent increase to $214 million over the $196 million that was reported for the same quarter of 2013. Operating ratio for the railroad also saw an increase to 66.7 percent, a 1.4 improvement over the fourth quarter 2013 numbers of 68.1 percent. Diluted earnings per share came in at $1.28 and adjusted diluted earnings per share came in at $1.27.
The railroad reports that revenue for the year came in at a record $2.6 billion, up nine percent over 2013. Carloads for the railroad increased by five percent over 2013 numbers.
Operating income for the full year came in at $847 million, a 15 percent increase over operating income reported for 2013. Operating ratio for 2014 came in at 67.1 percent, a 1.7 point improvement over 2013’s reported 68.8 percent. Reported net income totaled $504 million or $4.55 per diluted share, compared with 2013’s reported $353 million or $3.18 per diluted share.
“Kansas City Southern achieved record financial results with growth in all six commodity groups in 2014,” CEO and President David L. Starling said. “KCS met its stated target of high-single digit year-over-year revenue growth. Looking ahead to 2015, we believe KCS is well-positioned to maintain its growth momentum driven by a strengthening economy and unique franchise opportunities.”
Norfolk Southern railroad reported fourth quarter and record 2014 full-year results in a press release held Jan. 26.
Operating revenues for the railroad for the fourth quarter of 2014 came in even with the fourth quarter of 2013 at $2.9 billion. Income from railway operations was $891 million. Net income totaled $511 million for the quarter. Operating expenses were down one percent to $2.0 billion. Diluted earnings per share came in at $1.64, while operating ratio improved one percent to 69.0 percent.
Full-year records were set for the railroad, with railway operating revenues coming in at a record $11.6 billion, a three percent increase over 2013. Income from railway operations came in at a record $3.6 billion, up 10 percent from 2013. Net income came in at $2.0 billion. Operating expenses were up one percent to $8 billion. Operating ratio came in at 69.2 percent; a three percent improvement over 2013’s reported 71.0 percent. Diluted earnings per share are at $6.39 for the year.
“Norfolk Southern delivered another solid quarter of financial performance, capping a record-setting year during which our company achieved its best results for revenues, operating income, net income, earnings per share and operating ratio,” CEO Wick Moorman said. “For 2015, we plan to invest $2.4 billion in capital investments to maintain the safety and quality of our rail network, enhance service, improve operational efficiency and support growth opportunities.”
Canadian National railway announced increased earnings for the fourth quarter and full-year of 2014. Net income for the fourth quarter increased to C$844 million versus the reported C$635 million recorded for the same quarter of 2013.
Diluted earnings per share saw an increase of 36 percent to C$1.03, while operating income also increased by 30 percent to C$1,260 million. Operating ratio improved 4.1 points to 60.7 percent for the quarter.
Full-year net income came in at C$3,167 million or C$3.76 per diluted share. Adjusted diluted earnings per share increased 23 percent for the year to C$3.76, with an adjusted net income of C$3,05 million. Car load volumes for the railway reached record levels for the year, up eight percent and revenue ton-miles up 10 percent.
CEO and President Claude Mongeau said, “CN delivered a strong fourth-quarter 2014 performance, concluding a remarkable year characterized by brutal first-quarter winter weather, followed by a strong rebound starting in March, and capped by record full-year freight volumes. CN is optimistic about its future prospects. The company is aiming to deliver double-digit earnings per share growth in 2015.”
With rail network congestion improving in some of the nation’s grain belt, Union Pacific Railroad and BNSF Railway are facing another prospective headache: a shutdown of the port complex of Los Angeles and Long Beach, the country’s largest.
Omaha-based Union Pacific Railroad says a work slowdown by the the International Longshore and Warehouse Union on the California waterfront is hurting international volumes of cargo containers that travel by ship, rail and truck.
BNSF Railway, owned by Omaha’s Berkshire Hathaway Inc., said the labor dispute needs to get resolved before the economy begins to register damage.