The federal Surface Transportation Board issued the following statement on Friday, May 6:
The Surface Transportation Board today announced that it will require certain railroads to submit service recovery plans as well as provide additional data and regular progress reports on rail service, operations, and employment. These measures are meant to inform the Board’s assessment of further actions that may be warranted to address the acute service issues facing the rail industry and to promote industry-wide transparency, accountability, and improvements in rail service.
This decision follows extensive testimony on severe rail service issues reported by a wide range of witnesses — including agricultural, energy, and other shippers, as well as government officials, rail labor, and rail experts — during the Board’s April 26 and 27, 2022 public hearing in Urgent Issues in Freight Rail Service. The Board has also continued to review and monitor weekly rail service performance data, which indicate trends in deteriorating service. The decision focuses on the adequacy of recovery efforts involving BNSF Railway Company (BNSF), CSX Transportation (CSX), Norfolk Southern Railway Company (NS), and Union Pacific Railroad Company (UP), and it requires more comprehensive and customer-centric reporting of all Class I railroads’ service metrics.
“Our freight rail service hearing highlighted the grave concerns of shippers and others regarding freight rail service,” said Chairman Martin J. Oberman. “While the railroads have faced certain challenges over the last few years, the evidence produced at last week’s hearing is overwhelming that the railroads’ longstanding practice of reducing operating ratios by cutting employment levels, mothballing locomotives, and eliminating other essential resources are the central reasons why farmers have been hours away from depopulating herds, manufacturing facilities have reduced operating hours, and shippers cannot get their products to market on time or receive essential raw materials for their companies. These failures are harming the nation’s economy and, in my view, are contributing to the inflationary forces affecting food and fuel in particular.”
“Requiring additional reporting from railroads may not be the final result of our hearing on service issues. Today’s decision is an immediate step the Board can take to enable needed monitoring of the improved efforts the railroads have been promising for months, and to determine if additional regulatory steps are necessary to promote reliable service.”
Today’s decision requires all Class I carriers to submit several specific reports on rail service, performance, and employment. In addition, BNSF, CSX, NS, and UP are required to submit service recovery plans, progress reports, historical data, and participate in bi-weekly conference calls with Board staff.
A recording of the Board’s April 26 and 27, 2022 hearing in Urgent Issues in Freight Rail Service, may be viewed on the Board’s YouTube page. Today’s decision in Urgent Issues in Freight Rail Service—Railroad Reporting, Docket No. EP 770 (Sub-No. 1), may be viewed and downloaded here.
4th Quarter 2021 Net Earnings: Increased 13% to $1.7 billion from $1.5 billion Diluted Earnings Per Share:n/a – BNSF is not publicly traded Revenue:Increased 11% to $6.3 billion from $5.7 billion Operating Income:Increased 12% to $2.4 billion from $2.2 billion Operating Expenses:Increased 10% to $3.9 billion from $3.5 billion Operating Ratio:Improved to 60.0% from 60.3%
2021 Annual Earnings Net Earnings: Increased 16% to $6.0 billion from $5.2 billion Diluted Earnings Per Share: n/a – BNSF is not publicly traded Revenue: Increased 12% to $23.3 billion from $20.9 billion Operating Income: Increased 14% to $8.8 billion from $7.7 billion Operating Expenses: Increased 10% to $14.5 billion from $13.1 billion Operating Ratio: Improved to 60.9% from 61.6% Read BNSF’s full earnings report.
4th Quarter 2021 Net Earnings: Increased 17% to C$1.20 billion from C$1.02 billion Diluted Earnings Per Share: Increased 18% to $1.69 per share from $1.43 per share Revenue: Increased 3% to C$3.75 billion from C$3.66 billion Operating Income: Increased 11% to a record C$1.57 billion from C$1.41 billion Operating Expenses: Decreased 1% to C$2.19 billion from C$2.25 billion Operating Ratio: Improved 3.1 points to 58.3% from 61.4%
2021 Annual Earnings Net Earnings: Increased 37% to C$4.90 billion from C$3.60 billion Diluted Earnings Per Share: Increased 38% to $6.89 per share from $5.00 per share Revenue: Increased 5% to C$14.48 billion from C$13.82 billion Operating Income: Increased 18% to C$5.62 billion from C$4.78 billion Operating Expenses: Decreased 2% to C$8.86 billion from C$9.04 billion Operating Ratio: Improved 4.2 points to 61.2% from 65.4% Read CN’s full earnings report.
4th Quarter 2021 Net Earnings: Decreased 34% to C$532 million from C$802 million Diluted Earnings Per Share: Decreased 38% to $0.74 per share from $1.19 per share Revenue: Increased 1% to C$2.04 billion from C$2.01 billion Operating Income: Decreased 10% to C$832 million from C$928 million Operating Expenses: Increased 11% to C$1.21 billion from C$1.08 billion Operating Ratio: Worsened 530 basis points to 59.2% from 53.9%
2021 Annual Earnings Net Earnings: Increased 17% to C$2.9 billion from C$2.44 billion Diluted Earnings Per Share: Increased 16% to $4.18 per share from $3.59 per share Revenue: Increased 4% to C$8.0 billion from C$7.71 billion Operating Income: Decreased 3% to C$3.21 billion from C$3.31 billion Operating Expenses: Increased 9% to C$4.80 billion from C$4.40 billion Operating Ratio: Worsened 280 basis points to 59.9% from 57.1% Read CP’s full earnings report.
4th Quarter 2021 Net Earnings: Increased 23% to $934 million from $760 million Earnings Per Share: Increased 27% to $0.42 per share from $0.33 per share Revenue: Increased 21% to $3.43 billion from $2.83 billion Operating Income: Increased 12% to $1.37 billion from $1.22 billion Operating Expenses: Increased 28% to $2.1 billion from $1.6 billion Operating Ratio: Worsened to 60.1% from 57.0%
2021 Annual Earnings Net Earnings: Increased 37% to $3.8 billion from $2.8 billion Earnings Per Share: Increased 40% to $1.68 per share from $1.20 per share Revenue: Increased 18% to $12.52 billion from $10.58 billion Operating Income: Increased 28% to $5.6 billion from $4.4 billion Operating Expenses: Increased 11% to $6.9 billion from $6.2 billion Operating Ratio: Improved to 55.3% from 58.8% Read CSX’s full earnings report.
4th Quarter 2021 Net Earnings: Increased 258% to $595.1 million from $166.3 million Earnings Per Share:On December 14, 2021, Canadian Pacific Railway acquired the outstanding common and preferred stock of KCS. Therefore, earnings per share data is not presented because the company does not have any outstanding or issued publicly traded stock. Revenue: Increased 8% to $747.8 million from $693.4 million Operating Income: Increased 209% to $810.6 million from $262.3 million Operating Expenses: Decreased 115% to a negative $62.8 million from $431.1 million due to the merger Operating Ratio: Improved 70.6 points to –8.4% from 62.2%
2021 Annual Earnings Net Earnings: Decreased 15% to $527 million from $619 million Earnings Per Share:On December 14, 2021, Canadian Pacific Railway acquired the outstanding common and preferred stock of KCS. Therefore, earnings per share data is not presented because the company does not have any outstanding or issued publicly traded stock. Revenue: Increased 12% to $2.95 billion from $2.63 billion Operating Income: Decreased 12% to $884 million from $1.00 billion Operating Expenses: Increased 27% to $2.06 billion from $1.63 billion Operating Ratio: Worsened 8.1 points to 70.0% from 61.9% Read KCS’s full earnings report.
4th Quarter 2021 Net Earnings: Increased 13% to $760 million from $671 million Diluted Earnings Per Share: Increased 18% to $3.12 per share from $2.64 per share Revenue: Increased 11% to $2.9 billion from $2.6 billion Operating Income: Increased 15% to a 4th quarter record of $1.1 billion from $1.0 billion Operating Expenses: Increased 8% to $1.7 billion from $1.59 billion Operating Ratio: Improved 2% to a 4th quarter record 60.4% from 61.8%
2021 Annual Earnings Net Earnings: Increased 27% to $3 billion from $2 billion Diluted Earnings Per Share: Increased 31% to $12.11 per share from $7.84 per share Revenue: Increased 14% to $11.1 billion from $9.8 billion Operating Income: Increased 28% to a record $4.4 billion from $3.0 billion Operating Expenses: Decreased 1% to $6.7 billion from $6.8 billion Operating Ratio: Improved 7% to an all-time record of 60.1% from 69.3% Read NS’s full earnings report.
4th Quarter 2021 Net Earnings: Increased 24% to $1.7 billion from $1.4 billion Earnings Per Share: Increased 30% to $2.67 per share from $2.05 per share Revenue: Increased 12% to $5.7 billion from $5.1 billion Operating Income: Increased 22% to $2.4 billion from $2.0 billion Operating Expenses: Increased 5% to $3.3 billion from $3.1 billion Operating Ratio: Improved 3.6 points to 57.4% from 61.0%
2021 Annual Earnings Net Earnings: Increased 22% to $6.5 billion from $5.3 billion Earnings Per Share: Increased 26% to $9.98 per share from $7.90 per share Revenue: Increased 12% to $21.8 billion from $19.5 billion Operating Income: Increased 19% to $9.3 billion from $7.8 billion Operating Expenses: Increased 7% to $12.5 billion from $11.7 billion Operating Ratio: Improved 2.7 points to 57.2% from 59.9%
“The Union Pacific team concluded its most profitable year ever in 2021. We produced double-digit fourth-quarter revenue growth by leveraging our great rail franchise to generate positive business mix and core pricing gains,” UP CEO Lance Fritz said. Read UP’s full earnings report.
Notes:
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.
All comparisons are made to 2020’s fourth-quarter and 2020 year-end results respectively for each railroad.
All figures for CN & CP are in Canadian currency, except for earnings per share.
2nd Quarter 2021 Net Earnings: Increased 34% to $1.52 billion from $1.13 billion Earnings Per Share: n/a – not publicly traded Revenue:Increased 26% to $5.81 billion from $4.60 billion Operating Income:Increased 28% to $2.22 billion from $1.73 billion Operating Expenses: Increased 25% to $3.6 billion from $2.9 billion Operating Ratio: Improved 0.7% to 60.4% from 61.1% Click here to read BNSF’s full earnings report.
2nd Quarter 2021 Net Earnings: Increased 90% to C$1.034 million from C$545 million Diluted Earnings Per Share: Increased 90% to C1.46 from C$0.77 Revenue: Increased 12% to C$3.598 million from C$3.209 million Operating Income: Increased 76% to C$1.382 million from C$785 million Operating Expenses: Decreased 9% to C$2.216 million from C$2.424 million Operating Ratio: Improved 13.9 points to 61.6% from 75.5% Click here to read CN’s full earnings report.
2nd Quarter 2021 Net Earnings: Increased 96% to C$1.25 billion from C$635 million Diluted Earnings Per Share: Increased 100% to a record $1.86 per share from $0.93 per share Revenue: Increased 15% to a record C$2.05 billion from C$1.79 billion Operating Income: Increased 6% to C$820 million from C$770 million Operating Expenses: Increased 21% to C$1.23 billion from C$1.02 billion Operating Ratio: Improved 170 basis points to a record 55.3% from 57% Click here to read CP’s full earnings report.
2nd Quarter 2021 Net Earnings: Increased 135% to $1.17 billion from $499 million Earnings Per Share: Increased 136% to $0.52 per share from $0.22 per share Revenue: Increased 33% to $2.99 billion from $2.26 billion Operating Income: Increased 104% to $1.70 billion from $828 million Operating Expenses: Decreased 9% to $1.30 billion from $1.43 billion Operating Ratio: Improved to 43.4% from 63.3% Click here to read CSX’s full earnings report.
2nd Quarter 2021 Net Earnings: Reported a loss of ($378.0 million) from $110.3 million* Diluted Earnings Per Share: Increased 79% to $2.06 per share from $1.16 per share Revenue: Increased 37% to $749.5 million from $547.9 million Operating Income: Reported a loss of ($431.7 million) from $180.4 million* Operating Expenses: Increased to $460.4 million from $357.0 million Operating Ratio: Improved 3.8 basis points to 61.4% from 65.2% Click here to read KCS’s full earnings report. *losses due to CP-KCS & CN-KCS merger deals
2nd Quarter 2021 Net Earnings: Increased 109% to a second-quarter record of $819 million from $392 million Diluted Earnings Per Share: Increased 114% to a second-quarter record of $3.28 per share from $1.53 per share Revenue: Increased 34% to $2.8 billion from $2.1 billion Operating Income: Increased 91% to an all-time quarterly record of $1.2 billion from $610 million Operating Expenses: Increased 11% to $1.6 billion from $1.5 billion Operating Ratio: Improved 18% to an all-time quarterly record of 58.3% from 70.7% Click here to read NS’s full earnings report.
2nd Quarter 2021 Net Earnings: Increased 59% to $1.8 billion from $1.1 billion Earnings Per Share: Increased to $2.72 per share from $1.67 per share Revenue: Increased 30% to $5.5 billion from $4.2 billion Operating Income: Increased 50% to $2.5 billion from $1.7 billion Operating Expenses: Increased 17% to $3.0 billion from $$2.6 billion Operating Ratio: Improved 590 basis points to 55.1% from 61.0% Click here to read UP’s full earnings report.
Notes:
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.
All comparisons are made to 2020’s second-quarter results for each railroad.
All figures for CN & CP are in Canadian currency, except for earnings per share for CP
1st Quarter 2021 Net Earnings: Increased 5% to $1.3 billion from $1.2 billion Earnings Per Share: n/a – not publicly traded Revenue: Stayed flat at $5.4 billion Operating Income: Increased 4% to $1.9 billion from $1.8 billion Operating Expenses: Decreased 2% to $3.5 billion from $3.6 billion Operating Ratio: Improved 1.5% to 63.7% from 65.2% Click here to read BNSF’s full earnings report.
1st Quarter 2021 Net Earnings: Decreased 4% to C$974 million from C$1.011 million Diluted Earnings Per Share: Decreased 4% to C1.37 from C$1.42 Revenue: Stayed relatively flat, with a slight decrease to C$3.535 million from C$3.545 million Operating Income: Increased 9% to C$1.327 million from C$1.215 million Operating Expenses: Stayed relatively flat, with a slight decrease to C$2.208 million from C$2.330 million Operating Ratio: Improved 3.2 points to 62.5% from 65.7% Click here to read CN’s full earnings report.
1st Quarter 2021 Net Earnings: Increased 47% to C$602 million from C$409 million Diluted Earnings Per Share: Increased 51% to $4.50 from $2.98 Revenue: Decreased 4% to C$1.96 billion from C$2.04 billion Operating Income: Decreased 6% to C$780 million from C$834 million Operating Expenses: Decreased 2% to C$1.179 million from C$1.209 million Operating Ratio: Worsened 100 points to 60.2% from 59.2% Click here to read CP’s full earnings report.
1st Quarter 2021 Net Earnings: Decreased 8% to $706 million from $770 million Earnings Per Share: Decreased 7% to $0.93 per share from $1.00 per share Revenue: Decreased 1% to $2.81 billion from $2.86 billion Operating Income: Decreased 7% to $1.10 billion from $1.18 billion Operating Expenses: Increased 2% to $1.71 billion from $1.68 billion Operating Ratio: Worsened by 220 basis points to 60.9% from 58.7% Click here to read CSX’s full earnings report.
1st Quarter 2021 Net Earnings: Increased 1% to $153 million from $152 million Diluted Earnings Per Share: Increased 6% to $1.68 from $1.58 Revenue: Decreased 4% to $706 million from $732 million Operating Income: Decreased 13% to $253 million from $289 million Operating Expenses: Increased 2% to $453 million from $443 million Operating Ratio: Worsened 3.7 points to 64.2% from 60.5% Click here to read KCS’s full earnings report.
1st Quarter 2021 Net Earnings: Increased 77% to $673 million from $381 million Diluted Earnings Per Share: Increased 81% to a first-quarter record of $2.66 from $1.47 Revenue: Increased 1% to $2.64 billion from $2.63 billion Operating Income: Increased 79% to a first-quarter record of $1.0 billion from $568 million Operating Expenses: Decreased 21% to $1.6 billion from $2.1 billion Operating Ratio: Improved to an all-time quarterly record of 61.5% from 78.4% Click here to read NS’s full earnings report.
1st Quarter 2021 Net Earnings: Decreased 9% to $1.3 billion from $1.5 billion Earnings Per Share: Decreased 7% to $2.01 per share from $2.15 per share Revenue: Decreased 4% to $5.0 billion from $5.2 billion Operating Income: Decreased 7% to $2.0 billion from $2.1 billion Operating Expenses: Decreased 3% to $3.0 billion from $3.1 billion Operating Ratio: Worsened 1.1 points to 60.1% from 59.0% Click here to read UP’s full earnings report.
Notes:
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.
All comparisons are made to 2020’s first-quarter results for each railroad.
All figures for CN & CP are in Canadian currency, except for earnings per share for CP
4th Quarter 2020 Net Earnings: Increased 5% to $1.5 billion from $1.4 billion Earnings Per Share:n/a – BNSF is not publicly traded Revenue: Decreased 3% to $5.7 billion from $5.8 billion Operating Income: Increased 3% to $2.2 billion from $2.1 billion Operating Expenses: Decreased 6% to $3.5 billion from $3.7 billion Operating Ratio: Improved to 60.3% from 62.8% 2020 Annual Earnings Net Earnings: Decreased 6% to $5.2 billion from $5.5 billion Earnings Per Share: n/a – BNSF is not publicly traded Revenue: Decreased 11% to $20.9 billion from $23.5 billion Operating Income: Decreased 4% to $7.7 billion from $8.1 billion Operating Expenses: Decreased 15% to $13.1 billion from $15.4 billion Operating Ratio: Improved to 61.6% from 64.5% Click here for full financial results from BNSF.
4th Quarter 2020 Net Earnings: Increased 17% to C$1,021 million from C$873 million Earnings Per Share:Increased 17% to C$1.44 per share from C$1.22 per share Revenue: Increased 2% to C$3,656 million from C$3,584 million Operating Income: Increased 16% to C$1,411 from C$1,218 million Operating Expenses:Decreased 5% to C$2,245 million from C$2,366 million Operating Ratio: Improved 4.6 points to 61.4% from 66.0% 2020 Annual Earnings Net Earnings: Decreased 16% to C$3,562 million from C$4,216 million Earnings Per Share: Decreased 14% to C$5.01per share from C$5.85 per share Revenue: Decreased 7% to C$13,819 million from C$14,917 million Operating Income: Decreased 15% to C$4,777 million from C$5,593 million Operating Expenses:Decreased to C$9,042 million from C$9,324 million Operating Ratio:Worsened by 2.9 points to 65.4% from 62.5% Click here for full financial results from CN.
4th Quarter 2020 Net Earnings: Increased 21% to C$802 million from C$664 million Earnings Per Share:Improved 23% to C$5.97 per share from C$4.84 per share Revenue: Decreased 3% to C$2.01 billion from C$2.07 billion Operating Income: Increased by 4% to C$928 million from C$890 million Operating Expenses:Decreased 8% to C$1,084 billion from C$1.18 billion Operating Ratio: Improved by 310 basis points to a record-low 53.9% from 57.0% 2020 Annual Earnings Net Earnings: Increased to C$2,444 billion from C$2,440 billion Earnings Per Share: Increased 3% to a record C$18.05 per share from C$17.58 per share Revenue: Decreased 1% to C$7.71 billion from C$7.79 billion Operating Income: Increased 6% to C$3,311 billion from C$3,124 billion Operating Expenses:Decreased 6% to C$4,399 billion from C$4,67 billion Operating Ratio: Improved 280 basis points to a record-low 57.1% from 59.9% Click here for full financial results from CP.
4th Quarter 2020 Net Earnings: Decreased 1% to$760 million from $771 million Earnings Per Share:Stayed flat at $0.99 per share Revenue: Decreased 2% to $2,825 million from $2,885 Operating Income: Increased 5% to $1,215 million from$1,154million Operating Expenses:Decreased 7% to $1,610 million from $1,731 million Operating Ratio: Improved 300 basis points to a record 57.0% from 60.0% 2020 Annual Earnings Net Earnings: Decreased 17% to $2,765 million from $3,331 million Earnings Per Share: Decreased 14% to $3.60 per share from $4.17 per share Revenue: Decreased 11% to $10,583 million from $11,937 million Operating Income: Decreased 12% to $4,362 million from $4,965 million Operating Expenses:Decreased 12% to $4,326 million from $4,965 million Operating Ratio: Worsened to 58.8% from 58.4% Click here for full financial results from CSX.
4th Quarter 2020 Net Earnings: Increased to $165.7 millionfrom $127.2 million Earnings Per Share:Increased 38% to $1.81 per share from $1.31 per share Revenue: Decreased 5% to $693.4 million from $729.5 Operating Income: Increased to $262.3 million from $236.0 million Operating Expenses:Decreased to $431.1 million from $493.5 million Operating Ratio: Improved 5.4 points to 62.2% from 67.6% 2020 Annual Earnings Net Earnings: Increased to $617.0 million from $538.9 million Earnings Per Share: Increased to $6.57 per share from $5.42 per share Revenue: Decreased 8% to $2,632.6 million from $2,866.0 million Operating Income: Increased to $1,003.0 million from $886.3 million Operating Expenses:Decreased to $1,629.6 million from $1,979.7 million Operating Ratio:Improved to 61.9% from 69.1% Click here for full financial results from KCS.
4th Quarter 2020 Net Earnings: Increased 1% to $671 million from $666 million Earnings Per Share:Increased 4% to $2.64 per share from $2.55 per share Revenue: Decreased 4% to $2.6 billion from $2.7 billion Operating Income: Increased 2% to $1.0 billion from $962 million Operating Expenses:Decreased 8% to $1.59 billion from $1.73 billion Operating Ratio: Improved 4% to an all-time quarterly record of 61.8% from 64.2% 2020 Annual Earnings Net Earnings: Decreased 13% to $2.0 billion from $2.7 billion Earnings Per Share: Decreased 10% to $7.84 per share from $10.25 per share Revenue: Decreased 13% to $9.8 billion from $11.3 billion Operating Income: Decreased 13% to $3.0 billion from $4.0 billion Operating Expenses:Decreased 7% to $6.8 billion from $7.3 billion Operating Ratio: Worsened to 69.3% from 64.7% Click here for full financial results from NS.
4th Quarter 2020 Net Earnings: Decreased 2% to $1.38 billion from $1.40 billion Earnings Per Share:Increased 1% to $2.05 per share from $2.03 per share Revenue: Decreased 1% to $5.1 billion from $5.2 billion Operating Income: Decreased4% to $2.0 billion from $2.1 billion Operating Expenses:Increased 1% to $3.1 3 billion from $3.11 billion Operating Ratio: Worsened 1.3 points to 61.0% from 59.7% 2020 Annual Earnings Net Earnings: Decreased 10% to $5.3 billion from $5.9 billion Earnings Per Share: Decreased 6% to $7.90 per share from $8.41 per share Revenue: Decreased 10% to $19.5 billion from $21.7 billion Operating Income: Decreased 8% to $7.8 billion from $8.6 billion Operating Expenses:Decreased 11% to $11.7 billion from $13.2 billion Operating Ratio: Improved 0.7 points to 59.9% from 60.6% Click here for full financial results from UP.
Notes:
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.
All comparisons are made to 2019’s fourth quarter and annual financial results respectively for each railroad.
CN and CP financial results are in Canadian currency
CSX operational practices for building train consists that allowed for excessive longitudinal and lateral forces to be exerted on empty cars
Use of hand brakes to control train movement
Assessment and response to fires involving jacketed rail tank cars
Based on its investigation the NTSB issued a total of six safety recommendations, including one to the Federal Railroad Administration, three to CSX, one to the Association of American Railroads and one to the Security and Emergency Response Training Center. The recommendations seek:
Guidance for railroads to use in developing required risk reduction programs
Revision of rules for building train consists
Prohibiting use of hand brakes on empty rails cars for controlling train movement in grade territory
Incorporation of the lessons learned from this derailment about fire-exposed jacketed pressure tank cars in first responder training programs
Brother Paul M. Payne of Mount Vernon, Ohio, a member of Local 1397 in Columbus, and a father to five children, lost his life in an accident the morning of Nov. 22 at the CSX yard in Fostoria, Ohio. Payne Brother Payne, a conductor for eight years, was at work setting out a cut of cars in the yard located in northwest Ohio when he was fatally injured. His death is under investigation. Brother Payne was also a sergeant in the Ohio Army National Guard. “Paul was a dedicated husband, father and son that loved nothing more than spending time with his family,” his family wrote in his obituary. He is survived by his wife of 19 years, Haley (Davis) Payne; his children, Shawn, Jacob, Marcus, Lily and Sarah; his mother; sister; and paternal grandmother. The SMART Transportation Division offers its heartfelt condolences to the Payne family, his friends and his SMART-TD brothers and sisters in Local 1397 and elsewhere who are mourning his loss. His full obituary is available here.
Net Earnings: Decreased to $1.131 billion from $1.338 billion. Revenue: Decreased to $4.602 billion from $5.893 billion. Operating Income: Decreased to $1.73 billion from $2.007 billion. Operating Expenses:Decreased to $2.872 billion from $3.886 billion. Operating Ratio: Improved by 3.7 points to 61.1%. Link to read BNSF’s full earnings report.
Net Earnings: Decreased to C$908 million from C$1.25 billion. Earnings Per Share: Diluted earnings per share decreased 59% to C$0.77 from C$1.88 and adjusted diluted EPS decreased 26% to C$1.28 from C$1.73. Revenue: Decreased 19% to C$3.21 billion from C$3.96 billion. Operating Income: Decreased 53% to C$785 million from C$1.27 billion. Operating Expenses: Increased 6% to C$2.42 billion. Operating Ratio: Declined by 18 points to 75.5%; adjusted operating ratio declined 2.9 points to 60.4% from 57.5%. Link to read CN’s full earnings report.
Net Earnings: Decreased to C$635 million from C$724 million. Earnings Per Share: Diluted earnings per share decreased 10% to $4.66; adjusted diluted earnings per share decreased 5% to $4.30. Revenue: Decreased 9% to C$1.79 billion from C$1.98 billion. Operating Income: Decreased to C$770 million from C$822 million. Operating Expenses: Decreased to C$1.02 billion from C$1.16 billion. Operating Ratio: Improved 140 basis points to 57%. Link to read CP’s full earnings report.
Net Earnings: Decreased to $499 million from $870 million. Earnings Per Share: Decreased to $0.65 from $1.08. Revenue: Decreased 26% to $2.26 billion from $3.06 billion. Operating Income: Decreased 37% to $828 million from $1.31 billion. Operating Expenses: Decreased 19% to $1.43 billion from $1.76 billion. Operating Ratio: Declined 5.9 points to 63.3%. Link to read CSX’s full earnings report.
Net Earnings: Decreased to $109.7 million from $128.7 million. Earnings Per Share: Decreased to $1.16 per diluted share from $1.28. Revenue: Decreased to $547.9 million from $714 million. Operating Income: Decreased to $180.4 million from $208 million. Operating Expenses: Decreased to $367.5 million from $506 million. Operating Ratio: Improved 3.8 points to 67.1% from 70.9%; adjusted operating ratio worsened 1.5 points to 65.2% from 63.7%. Link to read KCS’s full earnings report.
Net Earnings: Decreased to $392 million from $722 million. Earnings Per Share: Diluted earnings per share decreased to $1.53 from $2.70. Revenue: Decreased 29% to $2.1 billion from $2.9 billion. Operating Income: Decreased to $610 million from $1.1 billion. Operating Expenses: Decreased 21% to $1.5 billion from $1.9 billion. Operating Ratio: Worsened to 70.7% from 63.6%. Link to read NS’s full earnings report.
Net Earnings: Decreased to $1.13 billion from $1.57 billion. Earnings Per Share: Decreased to $1.67 per diluted share from $2.22 per diluted share. Revenue: Decreased 24% to $4.2 billion from $5.6 billion. Operating Income: Decreased 28% to $1.13 billion from $1.57 billion. Operating Expenses: Decreased 22% to $2.59 billion from $3.34 billion. Operating Ratio: Worsened 1.4 points to 61.0% from 59.6%. Link to read UP’s full earnings report.
Notes:
BNSF’s earnings report had not been released as of July 29, 2020. This post will be updated when the information becomes available.
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.
All comparisons are made to 2019’s second-quarter results for each railroad.
All figures for CN & CP are in Canadian currency, except for earnings per share for CP
Net Earnings: Decreased 5% to $1.19 billion. Revenue: Decreased 6% to $5.4 billion. Operating Income: Increased 2% to $1.8 billion. Operating Expenses:Decreased 6.7% to $3.6 billion. Operating Ratio: Improved by 4 points to 65.2%. Link to read BNSF’s full earnings report.
Net Earnings: Increased to C$1.01 billion from C$786 million. Earnings Per Share: Diluted earnings per share increased 31% to C$1.42 from C$1.08 and adjusted diluted EPS increased by 4% to C$1.22. Revenue: Remained flat at C$3.5 billion. Operating Income: Increased to C$1.215 million from C$1.08 billion. Operating Expenses: Decreased 5% to C$2.33 billion from C$2.46 billion. Operating Ratio: Improved by 3.8 points to 65.7%; Adjusted operating ratio improved 1.5 points to 65.7% from 67.2%. Link to read CN’s full earnings report.
Net Earnings: Decreased to C$409 million from C$434 million. Earnings Per Share: Diluted earnings per share decreased 4% to $2.98; adjusted diluted earnings per share increased 58% to $4.42. Revenue: Increased 16% to C$2.04 billion from C$1.77 billion. Operating Income: Increased 54% to C$834 million from C$534 million. Operating Expenses: Decreased to C$1.209 billion from C$1.224 billion. Operating Ratio: Improved 1,010 basis points to 59.2%. Link to read CP’s full earnings report.
Net Earnings: Decreased 8% to $770 million from $834 million. Earnings Per Share: Decreased 2% to $1.00. Revenue: Decreased 5% to $2.85 billion from $3.01 billion. Operating Income: Decreased 3% to $1.17 billion from $1.22 billion. Operating Expenses: Decreased 7% to $1.68 billion. Operating Ratio: Improved to a first quarter record of 58.7% from 59.5% Link to read CSX’s full earnings report.
Net Earnings: Increased to $151.7 million from $102.7 million. Earnings Per Share: Increased to $1.58 per diluted share from $1.02. Revenue: Increased 8% to a record $731.7 million from $674.8 million Operating Income: Increased to $288.8 million from $160.3 million. Operating Expenses: Decreased to $442.9 million from $514.5 million Operating Ratio: Improved 15.7 points to 60.5% from 76.2%; adjusted operating ratio improved 6.5 points to 59.7% from 66.2% Link to read KCS’s full earnings report.
Net Earnings: Decreased 44% to $381 million from $677 million. Earnings Per Share: Diluted earnings per share decreased to $1.47 from $2.51. Revenue: Decreased to $2.63 billion from $2.8 billion. Operating Income: Decreased to $568 million from $966 million. Operating Expenses: Increased to $2.06 billion from $1.87 billion. Operating Ratio: Declined to 78.4% from 66.0%. Link to read NS’s full earnings report.
Net Earnings: Increased to $1.5 billion from $1.4 billion. Earnings Per Share: Increased to $2.15 per diluted share from $1.93 per diluted share Revenue: Decreased 3% to $5.2 billion from $5.4 billion Operating Income: Increased 9% to $2.14 billion from $1.96 billion Operating Expenses: Decreased 10% to $3.09 billion from $3.4 billion Operating Ratio: Improved 4.6 points to 59.0% from 63.6% Link to read UP’s full earnings report.
Notes:
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.
All comparisons are made to 2019’s first-quarter results for each railroad.
All figures for CN & CP are in Canadian currency, except for earnings per share for CP
4th Quarter 2019 Net Earnings: Increased 4% to $1.42 billion from $1.37 billion Earnings Per Share: n/a – BNSF is not publicly traded Revenue: Decreased 6% to $5.84 billion from $6.21 billion Operating Income: Increased 2% to $2.11 billion from $2.06 billion Operating Expenses: Decreased 10% to $3.73 billion from $4.14 billion Operating Ratio: Improved to 62.8% from 65.6% 2019 Annual Earnings Net Earnings: Increased 5% to $5.5 billion from $5.2 billion Earnings Per Share: n/a – BNSF is not publicly traded Revenue: Decreased 1% to $23.5 billion from $23.9 billion Operating Income: Increased 3% to $8.1 billion from $7.8 billion Operating Expenses: Decreased 4% to $15.4 billion from $16.1 billion Operating Ratio: Improved to 64.5% from 66.2% Click here to read BNSF’s full earnings report.
4th Quarter 2019 Net Earnings: Decreased 24% to C$873 million from C$1.14 billion Earnings Per Share: Diluted earnings per share decreased 22% to $1.22 from $1.56 Revenue: Decreased 6% to C$3.6 billion from C$3.8 billion Operating Income: Decreased 16% to C$1.22 billion from C$1.45 billion Operating Expenses: Increased to C$2.36 billion from C$2.35 billion Operating Ratio: Worsened by 4.1 points to 66% from 61.9% 2019 Annual Earnings Net Earnings: Decreased 3% to C$4.2 billion from C$4.3 billion Earnings Per Share: Diluted Earnings Per Share decreased 1% to $5.83 from $5.87 Revenue: Increased 4% to C$14.9 billion from C$14.3 billion Operating Income: Increased 2% to C$4.6 billion from C$5.5 billion Operating Expenses: Increased from C$8.8 billion to C$9.3 billion Operating Ratio: Worsened 0.9 points to 62.5% from 61.6% Click here to read CN’s full earnings report.
4th Quarter 2019 Net Earnings: Increased 22% to C$664 million from C$545 million Earnings Per Share: Diluted earnings per share improved 26% to $4.82 from $3.83 Revenue: Increased 3% to C$2.07 billion from C$2.01 billion Operating Income: Increased 2% to C$890 million from C$874 million Operating Expenses: Increased 4% to C$1.18 billion from C$1.13 billion Operating Ratio: Worsened 50 basis points to 57.0% from 56.5% 2019 Annual Earnings Net Earnings: Increased 25% to C$2.44 billion from C$1.95 billion Earnings Per Share: Diluted EPS increased 29% to a record $17.52 from $13.61 Revenue: Increased 7% to a record C$7.79 billion from C$7.32 billion Operating Income: Increased 10% to C$3.12 billion from C$2.83 billion Operating Expenses: Increased 4% to C$4.65 billion from C$4.49 billion Operating Ratio: Improved 140 basis points to 59.9% from 61.3% Click here to read CP’s full earnings report.
4th Quarter 2019 Net Earnings: Decreased 9% from $848 million to $771 million Earnings Per Share: Decreased from $1.01 to $0.99 per share Revenue: Decreased 8% to $2.89 billion from $3.14 billion Operating Income: Decreased 8% to $1.15 billion from $1.25 billion Operating Expenses: Decreased 9% to $1.73 billion from $1.9 billion Operating Ratio: A fourth-quarter record of 60.0%, down from 60.3% 2019 Annual Earnings Net Earnings: Increased 1% to $3.33 billion from $3.31 billion Earnings Per Share: Increased 9% to $4.17 per share from $3.84 per share Revenue: Decreased 3% to $11.94 billion from $12.25 billion Operating Income: Increased 2% to $4.97 billion from $4.87 billion Operating Expenses: Decreased 6% to $6.97 billion from $7.38 billion Operating Ratio: A U.S. Class I railroad record of 58.4%, down from 60.3% Click here to read CSX’s full earnings report.
4th Quarter 2019 Net Earnings: Decreased to $127.9 million from $161.8 million Earnings Per Share: Decreased 18% to $1.30 per diluted share from $1.59 per diluted share Revenue: Increased 5% to $729.5 million from $694.0 million Operating Income: Decreased to $236.0 million from $256.4 million Operating Expenses: Increased to $493.5 million from $437.6 million Operating Ratio: Worsened 450 basis points to 67.6% from 63.1% 2019 Annual Earnings Net Earnings: Decreased to $540.8 million from $629.4 million Earnings Per Share: Decreased 12% to $5.40 per diluted share from $6.13 per diluted share Revenue: Increased 6% to $2.9 billion from $2.7 billion Operating Income: Decreased to $886.3 million from $986.3 million Operating Expenses: Increased to $1.98 billion from $1.73 billion Operating Ratio: Worsened 540 basis points to 69.1% from 63.7% Click here to read KCS’s full earnings report.
4th Quarter 2019 Net Earnings: Decreased 5% to $666 million from $702 million Earnings Per Share: Decreased 1% to $2.55 per diluted share from $2.57 per diluted share Revenue: Decreased 7% to 2.7 billion from $2.9 billion Operating Income: Decreased 11% to $1.0 billion from $1.1 billion Operating Expenses: Decreased 5% to $1.7 billion from $1.8 billion Operating Ratio: Worsened to 64.2% from 62.8% 2019 Annual Earnings Net Earnings: Increased 2% to $2.72 billion from $2.67 billion Earnings Per Share: Increased 8% to $10.25 per diluted share from $9.51 per diluted share Revenue: Decreased 1% to $11.3 billion from $11.5 billion Operating Income: Increased 1% to $3.989 billion from $3.959 billion Operating Expenses: Decreased 3% to $7.3 billion from $7.5 billion Operating Ratio: Improved to a record 64.7% from 65.4% Click here to read NS’s full earnings report.
4th Quarter 2019 Net Earnings: Decreased 10% to $1.4 billion from $1.6 billion Earnings Per Share: Decreased 5% to $2.02 per diluted share from $2.12 per diluted share Revenue: Decreased 9% to $5.2 billion from $5.8 billion Operating Income: Decreased 5% to $2.1 billion from $2.2 billion Operating Expenses: Decreased 12% to $3.1 billion from $3.5 billion Operating Ratio: Increased 1.9 points to a record 59.7% from 61.6% 2019 Annual Earnings Net Earnings: Decreased 1% to $5.91 billion from $5.97 billion Earnings Per Share: Increased 6% to $8.38 per diluted share from $7.91 per diluted share Revenue: Decreased 5% to $21.7 billion from $22.8 billion Operating Income: Stayed flat at $8.6 billion Operating Expenses: Decreased 8% to $13.2 billion from $14.3 billion Operating Ratio: Decreased 2.1 points to 60.6% from 62.7% Click here to read UP’s full earnings report.
Notes:
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.
All comparisons are made to 2018’s fourth quarter and annual financial results respectively for each railroad.
All figures for CN & CP are in Canadian currency, except for earnings per share
