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Aug 28, 2015

Carmakers scramble to adapt to slowing Chinese demand

NEW YORK (Reuters) – China’s demand for luxury cars used to move in one direction – up. Now, the prospect of a sustained slump in Chinese demand, prompted by sharp declines in Chinese equity markets and a devaluation of the yuan, has global auto manufacturers scrambling to find new markets to sell goods.

German car makers are reviewing how many vehicles to send to China or the U.S., and U.S. dealers say they expect to get more Mercedes, Audi and BMW sport utility vehicles to sell as a result. A longer term slump could prompt automakers to export more vehicles from Chinese factories or absorb the short-term cost of production cuts, analysts said.

Jul 28, 2015

UPS second-quarter profit rises, tops estimate, despite lower revenue

CHICAGO (Reuters) – Package delivery company United Parcel Service Inc (UPS.N: Quote, Profile, Research, Stock Buzz) on Tuesday reported higher second-quarter net profit as improved margins offset a drop in revenue.

Shares in Atlanta-based UPS were up 2 percent at $97 in premarket trading.

Total revenue fell 1.2 percent from a year ago to about $14.1 billion in the quarter. UPS said the strong U.S. dollar and lower fuel surcharges hurt revenue growth during the second quarter. When main rival FedEx Corp (FDX.N: Quote, Profile, Research, Stock Buzz) reported quarterly results in June, the Memphis-based company said lower fuel surcharges had cut into revenue.

Jul 28, 2015

UPS 2nd-qtr profit rises, tops estimate, despite lower revenue

CHICAGO, July 28 (Reuters) – Package delivery company United
Parcel Service Inc on Tuesday reported higher
second-quarter net profit as improved margins offset a drop in
revenue.

Shares in Atlanta-based UPS were up 2 percent at $97 in
premarket trading.

Total revenue fell 1.2 percent from a year ago to about
$14.1 billion in the quarter. UPS said the strong U.S. dollar
and lower fuel surcharges hurt revenue growth during the second
quarter. When main rival FedEx Corp reported quarterly
results in June, the Memphis-based company said lower fuel
surcharges had cut into revenue.

Jul 23, 2015

Union Pacific CEO waiting for a consumer-led U.S. recovery

CHICAGO (Reuters) – Union Pacific Corp (UNP.N: Quote, Profile, Research, Stock Buzz), a railroad contending with declining coal, energy-related and agricultural freight volumes, sees some signs that consumer demand for cars and other big-ticket items will help boost business, its top executive said on Thursday.

“I’m optimistic they (consumers) will show up, but they have yet to take up the slack,” Chief Executive Officer Lance Fritz told Reuters.

Jul 23, 2015

Union Pacific profit hit by lower freight volumes, shares drop

CHICAGO (Reuters) – No. 1 U.S. railroad Union Pacific Corp (UNP.N: Quote, Profile, Research, Stock Buzz) reported a lower quarterly net profit on Thursday as freight volumes dropped 6 percent, sending shares down more than 2 percent in early trading.

Still, profit beat expectations, thanks to higher freight rates charged to customers.

Jul 23, 2015

Union Pacific profit falls on lower freight, primarily coal

CHICAGO, July 23 (Reuters) – No. 1 U.S. railroad Union
Pacific Corp on Thursday reported a lower quarterly net
profit due to a 6 percent drop in freight volumes led by a sharp
decline in coal shipments, but which came in above market
expectations.

All of the major U.S. railroads have been hit by lower coal
freight volumes as power plants have shifted more to burning
cheap natural gas amid low energy prices. Coal exports have also
been hurt by the strong U.S. dollar, which have made the
commodity less competitive against foreign coal producers.

Jul 22, 2015

UPS in talks to buy Coyote Logistics for at least $1.8 billion: source

CHICAGO/NEW YORK (Reuters) – Package delivery United Parcel Service Inc (UPS.N: Quote, Profile, Research, Stock Buzz) is in talks to buy Chicago-based Coyote Logistics LLC for at least $1.8 billion, a source familiar with negotiations said on Wednesday.

According to the source, Coyote is backed by Warburg Pincus, the New York-based private equity firm, which may instead opt for an initial public offering as a way to sell its stake in the transportation logistics services provider.

Jul 17, 2015

Falling coal, grain shipments hurt Kansas City Southern profit

CHICAGO, July 17 (Reuters) – Regional U.S. railroad Kansas
City Southern on Friday reported a lower quarterly net
profit, hurt by falling coal shipments in particular as
shipments declined almost across the board.

All the major U.S. railroads have seen their coal business
hurt this year as power plants have shifted to burning cheaper
natural gas. Coal exports have been hurt by the strong U.S.
dollar.

Jul 15, 2015

CSX CEO sees price growth in rest of 2015 and into 2016

CHICAGO (Reuters) – CSX Corp, the No. 3 U.S. railroad, expects to see strong train cargo price growth into next year, offsetting anticipated declines in coal and crude oil freight volumes, the company’s top executive said on Wednesday.

“We see strong pricing (growth) for the remainder of the second half (of this year) and into 2016,” Chief Executive Michael Ward told Reuters in a telephone interview.

Jul 15, 2015

CSX sees third-quarter EPS flat despite 15 percent coal freight drop

CHICAGO (Reuters) – CSX Corp (CSX.N: Quote, Profile, Research, Stock Buzz), the No. 3 U.S. railroad, said it expects earnings per share to be flat in the third quarter compared with the same period last year, despite an expected drop in coal freight volumes of 15 percent.

Like all the major railroads, CSX has experienced a sharp drop in coal shipment this year as power plants have shifted to burning cheaper natural gas. Coal exports have also been hurt by the strong U.S. dollar.

    • About Nick

      "Nick Carey is a Chicago-based, British-born journalist who has covered everything from the near-collapse of the Big Three automakers to the U.S. housing crisis. Nick is currently on general assignment, reporting on the human impact of the recession. He previously spent ten years working in central and eastern Europe."
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