CSX’s second-quarter earnings decline of 20% nonetheless beat Wall Street consensus estimates, as the company announced earnings of $308 million, or 78 cents per share, compared with $385 million, or 93 cents a share, in the second quarter of 2008. Revenue fell 25% to $2.19 billion.
Dahlman Rose & Co. cautioned that the earnings per share results, “when stripped of $0.06 per share in discontinued operations related to the [sale of the] Greenbrier resort ... came in at $0.72.” But even that, Dalhman Rose said, was “above our estimate of $0.66" and the consensus estimate of 62 to 64 cents per share.
Morgan Stanley analysts, though even more cautiously noting “$0.59 may be a cleaner number” for second-quarter earnings per share, also allowed that CSX generated a “solid performance, all things considered,” and added, “CSX remains a top pick in our freight transport universe.”
“While the economy continues to significantly impact our business, there are some signs that we may be seeing the bottom in many markets,” said CSX Chairman, President, and CEO Michael J. Ward.
Analysts said CSX has acted aggressively to control costs, but some see continued pressure on pricing. Dalhman Rose said the pressure is most acute in the intermodal sector, affecting CSX’s operating ratio.
Said Dahlman Rose, “We believe CSX Intermodal has had to resort to cutting rates in an attempt to remain competitive with the very aggressive trucking market. While operating expenses declined 17% to $255 million, it was not enough to offset the steep drop in revenues for the segment, bringing the operating ratio up over 730 basis points to 87.6%.”
In a related development, the United Transportation Union said that the impact of furloughs will be lessed for some CSX workers under an "innovative furlough retention board agreement." Furloughed employees placed on each furloughretention board will be guaranteed four days of work each bi-weekly payperiod, retain health-care insurance, continue buildingseniority and Railroad Retirement credits, remain current for ruleexaminations and qualifications, and recalled to active serviceunder a pre-determined mathematical formula. UTU members placed on continuous employment boards or furloughretention boards also are able to pursue part-time employmentelsewhere, with knowledge that their families are protected, and thatwhen the recession ends, they will return to full-time employment with CSX. These agreements do not impact the operation of extra boards. The agreement is similar to a continuous employment board agreement negotiated with Union Pacific.
"In negotiating these agreements, UTU officers have stressed to thecarriers that short-term economic gains from furloughs could backfireduring the peak vacation season and implementation July 16 of newhours-of-service regulations—both of which will limit availabilityof qualified operating crews," UTU noted. "Agreements such as UP's continuous employment boards andCSX's furlough retention boards lessen the likelihood that youngeremployees will depart the railroad permanently, triggering, eventually,an expensive search for new hires who then must be trained fromscratch."
UTU said it is seeking similar agreements with other major railroads, including BNSF and Norfolk Southern.
Genesee & Wyoming Inc. Tuesday reported a decline in traffic for both June and the second quarter of 2009, compared with their respective periods a year ago.
Greenwich, Conn.-based GWI said traffic in June 2009 fell 1.8%, while second-quarter traffic declined 4.3%.
Excluding acquisitions made by the company in the past 12 months, GWI's same-railroad traffic in June 2009 decreased 17.2%, compared with June 2008, led by declines in metals traffic, pulp & paper shipments, and mineral & stone traffic. Same-railroad traffic for the second quarter fell 20.0%, attributed to pulp & paper moves, metals traffic, and coal, coke, and ores traffic.
GWI railroads acquired within the last 12 months include the Georgia Southwestern Railroad and the Ohio Central Railroad System, both of which GWI purchased on Oct. 1, 2008. Carloads from acquisitions in the second quarter of 2009 includes traffic from the Georgia Southwestern Railroad, the Ohio Central Railroad System and, for April 2009 and May 2009, from CAGY Industries, Inc., which GWI purchased on May 31, 2008.
Last month GWI announced its intent to discontinue operations of its Huron Central Railway (HCRY) in October. HCRY traffic volume in June was half that of June 2008; second-quarter carload volume fell almost as much, 46.8%.
New York’s MTA Metro-North Railroad has awarded Ansaldo STS USA an $8.7 million contract to design and furnish 38 pre-wired signal houses and cases for a portion of Metro-North’s New Haven Line, spanning 17 miles, from Woodlawn, N.Y., to Riverside, Conn.
The contract is the third ASTS USA has received in recent years from Metro-North to replace the railroad’s relay-based signaling control system with the microprocessor-based MicroLok II® control system, interconnected over a fiber optic communications network.
“We are pleased that Metro-North has once again chosen us to provide them with our products and services,” said Ansaldo STS USA President and CEO Dr. Alan E. Calegari. “And we will continue to support their commitment to provide the utmost in quality systems for passenger, employee, and community safety.”
Metro-North’s New Haven Line links its namesake city with Grand Central Terminal in Manhattan. Amtrak also uses much of the New Haven Line, which is part of the Northeast Corridor.
The National Transportation Safety Board Monday issued a safety recommendation to the Washington Metropolitan Area Transit Authority (WMATA) calling for enhanced safety redundancy of its train control system. The call follows the June 22 accident on the Metrorail Red Line between Fort Totten and Takoma stations, which according to NTSB shows the Metrorail train control system is susceptible to a single point failure, which did not “stop a train when detection of a preceding train was lost.”
The NTSB recommendation says WMATA should evaluate track occupancy data on a real-time basis in order to detect losses in track occupancy and automatically generate alerts to prompt such actions as immediately stopping train movements or implementing appropriate speed restrictions to prevent collisions.
NTSB also made a second recommendation to the Federal Transit Administration (FTA) urging the agency to advise all rail transit operators with train control systems capable of monitoring train movements to evaluate their systems for adequate safety redundancy.
"While the NTSB is still in the very early stages of its investigation into this tragic accident here in our nation's capital, we have concerns about the failure of WMATA's train control system to prevent this collision," said Acting Chairman Mark V. Rosenker. “By calling upon WMATA to take swift action to upgrade the safety redundancy of its system and by urging FTA to alert other transit agencies of the hazards of single point failures such as the one experienced by WMATA, we hope to prevent something similar from happening again."
Per NTSB protocol, the letters were issued to the heads of both agencies with a request for a response from each organization within 30 days, addressing the actions taken or planned in response to the Board's recommendation.
The safety recommendation letter to WMATA may be found here.
The safety recommendation letter to the FTA may be found here.
Norfolk Southern and Union Pacific announced Monday the launch of new expedited intermodal service between Los Angeles and Atlantafor refrigerated trailer shippers.
They said the new service, the fastest East-West service available, offers shippers the option of having their refrigeration units serviced in El Paso, Tex., "significantly reducing the of protective service failure during transit."
"New rail customers will find this premier service a seamless shift from over-the-road transportation by providing truck-like speed (more than 500 miles per day) and reliability," said the announcement.
The Anaheim City Council and the Orange County Transportation Authority have selected the Los Angeles office of the global architectural firm HOK and Parsons Brinckerhoff to design the $180 million first phase of the Anaheim Regional Transportation Intermodal Center. HOK said the 60,000 square-foot structure will feature an 180-foot archway offering "expansive skyline views and will stand out as a landmark through the region."
The two firms are dedicated to delivering the "world-class and iconic structure" sought by Anaheim, said HOK Los Angeles Principal Riccardo Mascia.
Groundbreaking will take place next year and the structure is to be completed in 2013.
The center will serve the Anaheim Convention Center, Angel Stadium, Disneyland, and the Honda Center.
Los Angeles HOK said the project gives the design team the opportunity "to incorporate innovative technologies and sustainable features into the building such as solar panels, ETFE cushions--a highly-insulated enclosure system one-tenth the weight of glass--and a solar water heater built into the roof to reduce energy use, water use, solid waste production, and carbon emissions."
The Metropolitan Transit Authority of Harris County, which operates Houston’s METRORail light rail, marked groundbreaking for two new light rail lines Monday with three distinct ceremonies.
Groundbreaking for the METRORail North Line was held early Monday morning at the Northline Mall on Fulton Street, while a second ceremony, scheduled to occur simultaneously, was held for the Southeast Line at The PalmCenter on Griggs Road. A third, joint ceremony at roughly 10:30 a.m. marking the start of construction for both lines took place at Union Station in Minute Maid Park.
The North Line will run from the existing University of Houston Downtown Station, current northern terminus of the existing Red Line LRT service, to North Line Mall. The Southeast Line will run from downtown (linking with the Red Line) toTexas Southern University and the University of Houston.
“What this is all about is connecting communities,” said METRORail spokesman George Smalley. “It’s making it easier for people to get to a job, a medical facility or get to school. So, it is going to change the look of Houston and the feel of Houston and how we move about.”
Houston METRORail’s 7.5-mile Red Line, which opened on Jan. 1, 2004, currently handles about 39,500 weekday riders. After all five LRT lines (existing and proposed) are in operation, METRORail estimates ridership of 129,000 per day by 2030.
Responding to a July 10 New York Times article by Elisabeth Rosenthal entitled “Buses May Aid Climate Battle in Poor Cities,” Lyndon Henry, a data analyst for Austin, Tex.’s Capital Metropolitan Transportation Authority and also a technical consultant with Light Rail Now!, wrote the following. As of July 13, the Times had not yet published the response.
Responding to a July 10 New York Times article by Elisabeth Rosenthal entitled “Buses May Aid Climate Battle in Poor Cities,” Lyndon Henry, a data analyst for Austin, Tex.’s Capital Met ...