Posts Tagged ‘NS financial results’

NS Set OR Record in 2018

April 3, 2019

Norfolk Southern said it reached a record low operating ratio of 65.4 percent in 2018 and also touted its strong revenue growth in its annual report.

The freight carrier said its 2018 milestones included a third consecutive year of improvement in the operating ratio, growth of 9 percent in total railway operating revenue to $11.5 billion; and increased income from railway operations 12 percent to $4 billion, a record.

A statement from CEO James Squares said that NS achieved many things last year including reimagining operations through culture change, reimagining service and growth through the use of advanced technologies and “building a stronger company for our customers, our employees and our shareholders.”

An operating ratio shows what percentage of revenue is used for operations expenses. It is considered to be a measure of efficiency.

NS, UP, CP Release 4th Quarter Financial Results

January 28, 2019

Norfolk Southern, Union Pacific and Canadian Pacific all reported positive financial results in the fourth quarter of 2018 when compared with the same period of 2017.

NS said its 2018 fourth quarter income from operations was $1.1 billion, an increase of 27 percent compared with the same period in 2017 and up 9 percent on an adjusted basis.

Net income rose 44 percent to $702 million, earnings per share increased 52 percent to $2.57, revenue climbed 9 percent to $2.9 billion, volume increased 3 percent to 1.98 million units, railway operating expenses increased 9 percent to $1.8 billion and the operating ratio improved 5.5 points to 62.8.

The adjusted fourth quarter results reflect the remeasurement effects of net deferred tax liabilities resulting from the Tax Cuts and Jobs Act of 2017, which affected net income and diluted earnings per share in a year-over-year comparison, NS officials said in a news release.

Intermodal revenue climbed 13 percent to a record $755 million and volume rose 5 percent to a record 1.1 million units; merchandise revenue grew 7 percent to nearly $1.7 billion and volume was flat at 611,700 units; and coal revenue increased 7 percent to $457 million and volume inched up 1 percent to 255,000 units.

For all of 2018 NS reported railway operating revenue of $11.5 billion, up 9 percent compared with 2017. Intermodal and merchandise revenue set records at $2.9 billion (up 18 percent) and $6.7 billion (up 6 percent), respectively.

2018 income from railway operations jumped 17 percent to a record $3.9 billion, net income leaped 39 percent to $2.7 billion, railway operating expenses rose 4 percent to $7.5 billion, volume increased 4 percent to 7.9 million units and the operating ratio improved 2.7 points to an annual record 65.4.

At Union Pacific, the fourth quarter net income was $1.6 billion while diluted earnings per share were $2.12, an increase of 29 percent and 39 percent, respectively, compared with adjusted results for fourth quarter of 2017.

Reported results include previously disclosed adjustments reflecting the impact of corporate tax reform. Including those items, fourth-quarter net income totaled $7.3 billion, or $9.25 per diluted share.

UP said in a news release that on a year-over-year basis, fourth quarter operating revenue rose 6 percent to $5.7 billion, freight revenue grew 6 percent to $5.4 billion, operating income climbed 9 percent to $2.2 billion, operating expenses increased 4 percent to $3.5 billion, carloads rose 4 percent to 2.2 million units and the operating ratio improved 1.1 points to 61.6.

Revenue generated by premium business — which includes domestic and international intermodal, and finished vehicles — jumped 15 percent to $1.7 billion, with volume up 9 percent to 1.1 million units. International intermodal revenue ballooned 21 percent to $446.7 million while domestic intermodal revenue rose 3 percent to $561.7 million.

Industrial products revenue climbed 10 percent to $1.4 billion and volume increased 6 percent to 431,000 units — driven by strong construction materials and metals business — and agricultural products revenue rose 5 percent to $1.1 billion even though volume dipped 2 percent to 275,000 units.

Energy revenue declined 8 percent to $1.1 billion and volume fell 9 percent to 404,000 units due to a 47 percent plunge in sand business associated with more local sourcing and a 6 percent decrease in coal business.

During 2018, UP’s operating revenue grew 7 percent to $22.8 billion, operating income climbed 8 percent to $8.5 billion, net income soared 29 percent to $6 billion, operating expenses rose 7 percent to $14.3 billion, volume increased 4 percent to 8.9 million units and operating ratio ratcheted down 0.1 points to 62.7 compared with 2017 figures.

Canadian Pacific said it posted record operating income of CA$874 million for the fourth quarter, a 28 percent increase compared with the same period in 2017.
CP’s revenue for the quarter rose 17 percent to CA$2 billion from CA$1.7 billion a year ago.

Quarterly diluted earnings per share fell 43 percent to $3.83 from $6.77 a year ago. However, adjusted diluted EPS rose 41 percent to a new quarterly record of $4.55 from $3.22 in 2017 CP said in a news release.

CP’s operating ratio improved by 370 basis points to 56.5 percent while total operating expenses increased to CA$1.13 billion from CA$1 billion in Q4 2017.

CP reports its financial results in Canadian dollars, except for share and per share data.

For 2018, CP’s revenue rose 12 percent to CA$7.3 billion from CA$6.6 billion in 2017; operating ratio improved to a record 61.3 percent; and diluted EPS fell 17 percent to $13.61 from $16.44, while adjusted diluted EPS rose 27 percent to $14.51 from $11.39.

Total operating expenses for full-year 2018 rose to CA$4.5 billion compared with CA$4 billion in 2017.