Wednesday, January 25, 2017

Norfolk Southern reports fourth-quarter and full-year 2016 results

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Norfolk Southern reports fourth-quarter and full-year 2016 results
Achieves record operating ratio of 68.9 percent for the year

NORFOLK, Va., Jan. 25, 2017 – Norfolk Southern Corporation (NYSE: NSC) today reported fourth-quarter and 2016 financial results.

Net income for the quarter was $416 million, a 15 percent increase compared with $361 million during the same period of 2015. Diluted earnings per share were $1.42, up 18 percent compared with $1.20 diluted earnings per share in the fourth quarter last year. Norfolk Southern announced Tuesday that it increased its quarterly dividend to $0.61 per share, reflecting a 2 cent, or 3 percent, increase over the previous quarter’s dividend.

For 2016, net income was $1.7 billion, up 7 percent compared with $1.6 billion in 2015. Diluted earnings per share increased 10 percent to $5.62 compared with $5.10 per diluted share in the prior year. Results for 2015 included restructuring expenses that reduced fourth-quarter 2015 net income by $31 million, or $0.10 per diluted share, and lowered 2015 net income by $58 million, or $0.19 per diluted share for the full year.

“2016 was a pivotal year as Norfolk Southern began implementing its new Strategic Plan. We delivered $250 million of productivity savings and recorded our best ever operating ratio, notwithstanding challenging business conditions,” said James A. Squires, Norfolk Southern chairman, president and CEO. “With the dedication and support of Norfolk Southern’s talented employees, we improved service for customers while positioning the company for further growth in 2017 and beyond. We are poised to continue building on our success and deliver an additional $100 million of productivity savings in 2017 on the way to our goal of $650 million of annual savings by 2020. We remain steadfast in our commitment to delivering superior shareholder value through the execution of our Strategic Plan.”

FOURTH-QUARTER SUMMARY

·         Railway operating revenues of $2.5 billion declined 1 percent compared with fourth-quarter 2015, reflecting lower merchandise and coal traffic volume, as well as reduced fuel surcharges. These declines were offset in part by intermodal volume growth that eclipsed the effects of the 2015 Triple Crown restructuring.

·         General merchandise revenues were $1.5 billion, 1 percent lower than the same period last year. Volume was 3% lower overall, as growth in steel and agriculture was offset by declines in energy markets, vehicles, and paper and forest products. Norfolk Southern’s five merchandise commodity groups reported the following year-over-year revenue results:

§  Agriculture: $399 million, up 4 percent
§  Chemicals: $395 million, down 7 percent
§  Metals/Construction: $296 million, up 6 percent
§  Automotive: $237 million, down 5 percent
§  Paper/Forest: $177 million, down 5 percent



  • Intermodal revenues increased to $583 million, a 4 percent gain compared with fourth-quarter 2015. Volumes increased 7 percent, with growth in domestic and international traffic offsetting the Triple Crown restructuring.

  • Coal revenues declined 7 percent to $403 million compared with fourth-quarter 2015. Volume fell 4 percent with an increase in export coal softening the decline in the utility market.

  • Railway operating expenses declined $147 million, or 8 percent, to $1.7 billion compared with same period last year due to targeted expense reductions and the absence of last year’s restructuring costs.

  • Income from railway operations was $761 million, an increase of 19 percent compared with fourth-quarter 2015.
 
  • The composite service metric, which measures train performance, terminal operations, and operating plan adherence, was 80 percent, a 200 basis point improvement compared with 78 percent in the same quarter last year.

  • The railway operating ratio, or operating expenses as a percentage of revenues, was 69.4 percent, a 510 basis point improvement compared with 74.5 percent in the fourth quarter of 2015.

2016 SUMMARY

  • Railway operating revenues were $9.9 billion, 6 percent lower compared with 2015. The decrease was driven by a 3 percent volume decline due to reductions in energy-related markets and the Triple Crown restructuring, as well as reduced fuel surcharges.

  • General merchandise revenues were $6.2 billion, a 2 percent decrease compared with the prior year. Volume declined 2 percent, primarily due to reduced demand in energy markets, and fuel surcharges were lower.
 
  • Intermodal revenues totaled $2.2 billion, 8 percent lower compared with 2015, reflecting the Triple Crown restructuring, as well as reduced fuel surcharges. International and domestic growth more than offset the volume decline from the Triple Crown restructuring. 
 
  • Coal revenues were $1.5 billion, down 18 percent year-over-year. Reduced utility volumes combined with a weak global export market lowered total volume by 16 percent.
 
  • Railway operating expenses declined $813 million, or 11 percent, to $6.8 billion primarily due to targeted expense reduction initiatives, lower fuel expenses, the absence of last year’s restructuring cost, and service improvements.

  • Income from railway operations was $3.1 billion, a 7 percent increase compared with the previous year.
 
  • The composite service metric was 80 percent, an 800 basis point improvement compared with 72 percent last year.

  • The operating ratio for the year was a record 68.9 percent, a 370 basis point improvement compared with 72.6 percent in the prior year.



For 2017, Norfolk Southern plans to invest $1.9 billion to maintain the safety of its rail network, enhance service, improve operational efficiency, and support growth opportunities, which is consistent with Norfolk Southern’s total capital investment of $1.9 billion in 2016.

About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.

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Norfolk Southern names six to vice president responsibilities

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NORFOLK, Va., Jan. 24, 2017 – The board of directors of Norfolk Southern Corporation has named six people to new positions and duties, announced James A. Squires, chairman, president, and chief executive officer.

Effective Feb. 1:

·         Thomas G. Werner is vice president corporate communications and chief sustainability officer, Norfolk.
·         C.H. “Jake” Allison, Jr., is vice president and treasurer, Norfolk.
·         Susan S. Stuart is vice president audit and compliance, Atlanta.
·         Bruno Maestri is vice president government relations, Washington.

Effective Mar. 1:

·         Jerry W. Hall is vice president mechanical, Atlanta.
·         Karol R. Lawrence is vice president network and service management, Atlanta.

“Today’s appointments reflect the deep strength and versatility of the Norfolk Southern management team,” Squires said. “Our owners, customers, and communities can have every confidence that their interests always will be first and foremost with these experienced railroad leaders.”

Werner joined Norfolk Southern in 1999 as director IT program management. He served in positions of increasing responsibility in the information technology department before being named vice president information technology in 2007. He was named vice president and treasurer, his most recent position, in 2013. Werner holds degrees from Princeton and University of Pennsylvania.

Allison joined Norfolk Southern in 1993 as manager audits. He served in audit and compliance, sourcing, and accounting positions before being named vice president and controller in 2009. He was named vice president audit and compliance, his most recent position, in 2013. Allison holds a degree from Virginia Tech.

Stuart joined Norfolk Southern in 1985 as an information technology developer. She served in information technology and accounting positions before being named assistant vice president accounting operations, her most recent position, in 2008. Stuart holds degrees from the University of Virginia and Virginia Tech. In 2014, she completed the General Management Program at Harvard Business School.

Maestri joined NS in 1995 and served in positions relating to environmental management and protection, and then public affairs, before being named vice president government relations and corporate communications in 2005. He was named vice president government relations, corporate communications, and corporate sustainability officer, his most recent position, in 2015. Maestri holds degrees from the University of Virginia.

Hall joined Norfolk Southern in 1985 as a management trainee. He served in a wide range of transportation positions before being named vice president intermodal operations in 2013, and vice president network and service management, his most recent position, also in 2013. Hall holds a degree from the University of Alabama. In 2016, he completed the Advanced Management Program at Harvard Business School.

Lawrence joined Norfolk Southern in 2001 as director program management office. She served in planning and technology and strategic planning positions before being named assistant vice president information technology, her most recent position, in 2006. Lawrence holds degrees from Susquehanna University and Villanova University. In 2015, she completed the General Management Program at Harvard Business School. 

Squires also announced the retirement of two Norfolk Southern executives.

·         Donald D. Graab, vice president mechanical, Atlanta, retires after 39 years’ service.
·         Frank S. Brown, assistant vice president corporate communications, Norfolk, retires after 38 years’ service.

“We thank Don and Frank for their contributions and dedication -- in the best Thoroughbred tradition -- to Norfolk Southern and those whom we serve,” Squires said.

About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.

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Norfolk Southern raises quarterly dividend

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NORFOLK, Va., Jan. 24, 2017 – Norfolk Southern Corporation announced that its Board of Directors today voted to increase the regular quarterly dividend on the company’s common stock by 3 percent, or 2 cents per share, from 59 to 61 cents per share.

“The dividend increase reflects our board’s confidence in the company’s strategic plan and demonstrates our commitment to deliver long-term value for our shareholders,” said Norfolk Southern Chairman, President and CEO James A. Squires.

The increased dividend is payable on March 9 to stockholders of record on Feb. 3. Since its inception in 1982, Norfolk Southern has paid dividends on its common stock for 138 consecutive quarters.

About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.

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CSX Corporation Announces Fourth-Quarter and Full-Year 2016 Earnings


 
January 17, 2017
CSX Corporation Announces Fourth-Quarter and Full-Year 2016 Earnings

Highlights:
  • CSX generated record full-year efficiency savings of nearly $430 million in 2016
  • Improved service levels drove strong pricing to support reinvestment in the business  
  • For the second consecutive year, the company delivered a sub-70 operating ratio 

JACKSONVILLE, Fla. – January 17, 2017 – CSX Corporation (Nasdaq: CSX) today announced fourth quarter 2016 net earnings of $458 million, or $0.49 per share, versus $466 million, or $0.48 per share, in the same period of last year. The fourth quarter of 2016 included an operating property sale and a debt refinancing charge, both of which were $0.08 per share and offset each other in the quarter. In addition, the fourth quarter included an extra accounting week resulting from the company’s 52/53 week fiscal reporting calendar, which benefitted earnings per share by $0.03 per share.

Including the extra week, fourth quarter revenue increased 9 percent and expenses increased 2 percent. Operating income for the quarter was $1 billion, which included the $115 million gain from the property sale and the $62 million benefit from the extra week.    

For the full year 2016, the industry continued to face headwinds from low global commodity prices and strength of the U.S. dollar. In this environment, CSX generated $11.1 billion in revenue as volume declined 5 percent overall with a 21 percent decline in the company’s coal business. Even with these ongoing challenges, CSX delivered earnings per share of $1.81, operating income of $3.4 billion and an operating ratio of 69.4 percent.

“In an environment where the company lost almost $470 million of coal revenue and experienced weakness across most of its markets, CSX delivered nearly $430 million of productivity savings in 2016, while improving customer service,” said Michael J. Ward, chairman and chief executive officer. “With business conditions gradually improving and the ongoing transformation into the CSX of Tomorrow, we will continue to deliver sustainable shareholder value.”

The CSX of Tomorrow strategy drives profitable growth in its merchandise and intermodal markets as the company progresses towards a mid-60s operating ratio longer-term.

CSX executives will conduct a quarterly earnings conference call with the investment community on January 18, 2017, from 8:30 a.m. to 9:30 a.m. Eastern time. Investors, media and the public may listen to the conference call by dialing 1-888-EARN-CSX (888-327-6279) and asking for the CSX earnings call. Callers outside the U.S., dial 1-773-756-0199. Participants should dial in 10 minutes prior to the call. In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company's website at http://investors.csx.com. Following the earnings call, an internet replay of the presentation will be archived on the company website.

This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.

About CSX and its Disclosures

CSX, based in Jacksonville, Florida, is a premier transportation company.  It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products.  For nearly 190 years, CSX has played a critical role in the nation's economic expansion and industrial development.  Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides.  It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.

This announcement, as well as additional financial information, is available on the company's website at http://investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on Twitter (http://twitter.com/CSX) and on SlideShare (http://www.slideshare.net/HowTomorrowMoves).  The social media channels used by CSX may be updated from time to time.

More information about CSX Corporation and its subsidiaries is available at www.csx.com and on Facebook (http://www.facebook.com/OfficialCSX).


Forward-looking Statements

This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward- looking statements include, among others; (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.

Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.

Contacts:
David Baggs, Investor Relations
904-359-4812

Lauren Rueger, Corporate Communications
904-366-4211
 

Ringling Brothers Red and Blue units circus trains

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As most of you may have heard or read by now, after May both Ringling Brothers Red and Blue units circus trains will fade into what Willie Nelson sang about in his song "City of New Orleans". In it he said "This train got the disappearing railroad blues." and so will both Ringling Brothers circus trains have those disappearing blues. Having chased both trains since 1983 I would like to share some of my photos taken during that time frame. In 1996 I had the opportunity to photograph the circus train going west around Horseshoe Curve. The crowd of people waiting for the train on that day was huge. Passing by the Curve's viewing area people were photographing the train's passage and Ringling Brothers personnel were photographing the crowd from the vestibules. It was an amazing sight to witness that will no longer happen!
    After closing out NYC's Madison Square Garden, Ringling Brothers Red Unit would pass through Manville (NJ) on June 3, 1985 over what is now CSX's Trenton Line. As it passed by CP WESTON (MP 56), a CP that no longer exists, a member of the show waved from the vestibule to me as he passed by. Bringing up the rear markers on that day of this forty-three car train was a CR caboose! Like cabooses those friendly waves from the vestibules will soon be history. One can also speculate that come May both the Red and Blue units might be traveling over these same tracks to Florida for the very last time after closing out their final shows in Providence (RI) on May 7 and Uniondale (NY) on May 21, respectively.
    April 11, 2005 would find me once again track side in Stanton Station (NJ) along the Lehigh Line awaiting the Red Unit's passage. On this day the  fifty-six car train would be making the 339 mile trip from NYC to State College, PA. A grandfather was out taking a walk with his grandson when he inquired what I was waiting on. I told him Ringling Brothers Circus Train. When the train sounded its horn as it approached the grade crossing, both of them would watch the train's passage with much interest. It will be goodbye to spontaneous sights like that of people of all ages taking time to watch the circus train's passing. In closing I can say that it was a great ride while it lasted and certainly glad that there was enough patience along with perseverance on my part to capture these images.
 
 


Friday, January 13, 2017

CSX Customers Announce $9.5 Billion in 2016 Investments

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CSX Express
January 11, 2017
CSX Customers Announce $9.5 Billion in 2016 Investments

JACKSONVILLE, Fla. – January 11, 2017 – CSX (Nasdaq: CSX) worked with its customers in 2016 to announce 114 new or expanded facilities to be located on the company’s rail network or connecting short lines. These new projects represent $9.5 billion in customer investments that are expected to generate approximately 8,100 new jobs in areas served by CSX.

“The substantial capital investments announced by our customers last year included a new automotive plant and an ethane cracker facility to further leverage abundant domestic natural gas supplies,” said Derrick Smith, vice president-strategic business development. “We also saw strong activity that generated other energy projects as well as facility construction or expansion to support agriculture and intermodal markets. These projects rely heavily on the teamwork among CSX and the local, county and state economic development professionals who ensure these projects are completed successfully. We thank them for that collaboration.”

Once these facilities are fully operational, they are projected to generate more than 136,000 new annual carloads for CSX. In addition to these projects that will be built over the next several years, more than 100 customer facilities on CSX began operations in 2016.

Since 2000, CSX customers have invested more than $51 billion in rail-served facilities, creating more than 70,000 jobs at those plants, distribution centers and other enterprises across the company’s 23-state network. To support rail-oriented industrial development, CSX’s Select Site program pre-certifies properties that are suitable for manufacturing use. These sites meet rigorous criteria to increase development probability and reduce time and costs for CSX customers. Customers considering a new or expanded facility can learn more about CSX Select Sites at 
http://www.csxselectsite.com or at www.csxindustrialdevelopment.com.

CSX provides service via an extensive network that connects to nearly two-thirds of the nation’s population and serves more than 70 ocean, river and lake ports. CSX can move a ton of freight an average of nearly 450 miles on a single gallon of fuel, and one train can carry the equivalent load of 280 trucks, reducing carbon emissions and wear and tear on public roads.


About CSX

CSX, based in Jacksonville, Florida, is a premier transportation company.  It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products.  For nearly 190 years, CSX has played a critical role in the nation’s economic expansion and industrial development.  Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides.  It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.  More information about CSX Corporation and its subsidiaries is available at
www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).

Contact:
Gary Sease
(904) 359-1719

Thursday, January 12, 2017

GPCo Author Presentation TONIGHT!

GPCo author offers talk on railroad history!
PRESENTATION TONIGHT!
Railroad History, Presented by an Expert
Railroads of the Catskills
Thursday, Jan. 12, 2017, 7PM - 9PM
Morris Museum's Bickford Theatre
Morristown, NJ

GPCo vice president and author Richard J. King has long been a historian of railroads of the Catskill Mountain region of New York State, and has amassed a unique collection of images and stories dating back to the 1800s that he will be sharing during his presentation. Rail lines like the Ulster & Delaware Railroad, the Delaware & Northern Railroad, and the Catskill Mountain Railway criscrossed this treacherous, snowy, and mountainous landscape before roads had even reached many of the communities along the rails. The unique challenges faced by construction gangs and train crews to operate and maintain these lines will be explored in the photos and stories of the people who lived it. Attendance is free, and all are welcome!

The Garbely Publishing Company
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Tuesday, January 10, 2017

Norfolk Southern to hold fourth-quarter 2016 earnings conference call Jan. 25

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NORFOLK, Va., Jan. 3, 2017 – Norfolk Southern Corporation (NYSE: NSC) will announce its fourth-quarter financial results during a conference call and live Internet webcast at 8:45 a.m. EST on Wednesday, Jan. 25, 2017. Quarterly earnings results will be released at 8 a.m. EST on Jan. 25, and a press release will be posted at www.nscorp.com under the Investors section.

What:
Norfolk Southern Fourth-Quarter 2016 Earnings Conference Call
When:
Wednesday, Jan. 25, 2017, at 8:45 a.m. EST
How to participate:
Teleconference: 877-869-3847 (please dial in several minutes prior to call start). Live webcast: Go to www.nscorp.com under the Investors section. Presentation materials will be posted at www.nscorp.com in the Investors section.
Audio Replay:
Following the live broadcast, an audio replay of the conference call will be available until Feb. 1, 2017, by dialing 877-660-6853 and access number 13651817. The replay also will be available as an MP3 downloadable podcast in the Investors section of the company's website.

For electronic notification of earnings events, subscribe to NSInvest, Norfolk Southern's email distribution list for news releases on earnings and issues pertaining to the financial performance of Norfolk Southern Corporation.

About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.

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