Cowen and Company

“While market activity continues to improve, Trinity's third-quarter results were negatively impacted by labor shortages and turnover as well as supply chain disruptions, diluting the impact of margin improvement initiatives in the Rail Products Group,” President and CEO Jean Savage said during a Oct. 21 earnings announcement.

Trinity: Challenging 3Q21, Improving Railcar Market Outlook (Updated, Cowen)

While Trinity Industries’ Rail Products Group was “challenged” in third-quarter 2021, the Railcar Leasing and Management Service Group had “another quarter of strong performance, and we maintain our view that market fundamentals for railcar leasing should continue to ramp up into 2022,” President and CEO Jean Savage said on Oct. 21.

Cowen 3Q21 Shipper Surveys Say …

An “incremental positive for orders” and “sequentially flat” rate increases characterized Cowen and Company’s third-quarter 2021 Rail Equipment and Rail Shipper Surveys, respectively, report analysts Jason Seidl (Railway Age’s Wall Street Contributing Editor), Matt Elkott and Elliot Alper.

CN, Under Siege from TCI, ‘Redefining.’ Will it Work?

A few days after throwing in the towel on its attempted merger with Kansas City Southern, and facing a board and management reorganization forced by activist investor and “beneficial owner” TCI Fund Management Ltd., CN on Sept. 17 announced its “Full Speed Ahead – Redefining Railroading” initiative, which it describes as an “ambitious value creation plan” consisting of, for full-year 2022, $5 billion in stock buybacks (a previously authorized C$1.1 billion of it to be completed by the end of January 2022), a decrease in capital investment to approximately 17% of revenues, C$700 million of additional, incremental operating income, a 57% operating ratio, and elimination of more than 1,000 jobs, 400 of them from operating crafts.

“Our team delivered strong execution in the second quarter and strengthened our financial position, despite severe disruption in India stemming from the pandemic, continued challenges in our OE end-markets and inflationary pressures globally,” Wabtec’s President and CEO Rafael Santana said during a second-quarter 2021 earnings report on July 29.

Wabtec 2Q21: ‘All-Around Beat, Backlog Grows’

Despite continued market challenges, Wabtec Corp. “strengthened” its financial position in second-quarter 2021, growing its 12-month backlog—“the highest since second-quarter 2019”—and posting a “year-to-date book-to-bill above 1.0,” the company reported.