CHICAGO (Reuters) – Union Pacific Corp is scrambling to cope with opposing trends across its network after a drop in freight volumes in the first quarter, the No. 1 U.S. railroad’s top executive said on Thursday.
Coal demand fell 5 percent in the quarter from a year earlier as utilities took advantage of low prices to burn natural gas instead. Overall freight volumes were down 2 percent, and the company reported a lower-than-expected profit on Thursday.
CHICAGO, April 23 (Reuters) – Caterpillar Inc on
Thursday reported a better-than-expected quarterly profit
despite lower sales and gave a somber outlook for the rest of
2015 based on the strong U.S. dollar, weak oil prices and
But the company maintained its sales outlook for the year
and slightly raised its 2015 earnings per share outlook, helping
lift shares in the Peoria, Illinois-based company more than 4
percent after the announcement.
CHICAGO, April 22 (Reuters) – No. 1 U.S. railroad Union
Pacific Corp on Thursday reported a higher quarterly net
profit as lower fuel costs and pricing gains offset falling
freight volumes, but results fell short of market expectations.
The railroad’s shares fell 2.46 percent to $108 in premarket
Union Pacific saw the volume of coal on its rails fall 5
percent during the quarter. U.S. utilities have taken advantage
of lower natural gas prices, burning less coal in the process.
The strong U.S. dollar has also led to lower coal exports.
CHICAGO (Reuters) – When iconic motorcycle maker Harley-Davidson Inc warned on Tuesday that discounting from foreign rivals would dent its profits, the message resonated beyond the motorcycle business.
From cars to construction equipment, the impact of the strong dollar is a big problem for U.S. companies selling overseas. But the U.S. dollar’s recent surge to multiyear highs against major currencies, such as the euro and yen, has also become a challenge to their efforts to protect market share on home turf.
CHICAGO, April 21 (Reuters) – Regional U.S. railroad Kansas
City Southern on Tuesday reported a drop in revenue as
its coal and energy-related freight volumes took a hit and the
strong U.S. dollar hurt its Mexico-based business, but net
As natural gas prices have fallen, utilities have shifted
away from coal, resulting in a 26 percent drop in first-quarter
coal revenue. Fracking sand revenues were off 12 percent as oil
producers in the Bakken oil formation in North Dakota scaled
back production amid low oil prices.
CHICAGO (Reuters) – Low oil prices and the strong U.S. dollar made for a somewhat painful first quarter for major U.S. railroads CSX Corp (CSX.N: Quote, Profile, Research, Stock Buzz) and Norfolk Southern Corp (NSC.N: Quote, Profile, Research, Stock Buzz), and may continue to weigh on their profits.
Both companies derive about a fifth of their revenue from hauling coal, which faces competition from lower-priced petroleum products.
CHICAGO (Reuters) – U.S. railroad CSX Corp (CSX.N: Quote, Profile, Research, Stock Buzz) on Tuesday reported a higher quarterly net profit on increased freight volumes and higher rates charged to customers, and announced a $2 billion share repurchase program.
Shares of CSX, the third-largest U.S. railroad, rose nearly 2 percent in after-market trading.
April 10 (Reuters) – General Electric Co said it
would shed the bulk of its finance unit and return as much as
$90 billion to shareholders as it becomes a “simpler” industrial
business instead of an unwieldy hybrid of banking and
GE shares jumped 7.5 percent on Friday after the company
outlined plans for substantially shrinking its GE Capital unit.
The plan includes a buyback of up to $50 billion in GE shares,
the sale of about $30 billion in real estate assets over the
next two years and the disposal of more GE Capital operations.
CHICAGO (Reuters) – FedEx Corp’s $4.8 billion bid Tuesday for TNT Express took the world’s last large potential package delivery acquisition target off the table, marking a victory in FedEx’s battle to gain market share from rival United Parcel Service Inc.
If FedEx wins regulatory approval for the proposed acquisition, it would pull into the No. 2 spot among package delivery services in Europe with a 17 percent market share. That would put it ahead of UPS in Europe, but leave Deutsche Post’s DHL with the lead at 19 percent of the market.
By Nick Carey
(Reuters) – Package delivery company FedEx Corp (FDX.N: Quote, Profile, Research, Stock Buzz) reported a better-than-expected quarterly net profit on Wednesday but forecast full-year earnings below analysts’ estimates as it looked for the global economy to grow at a lackluster rate.
Memphis-based FedEx also said fuel expenses were reduced by 30 percent due to low oil prices but its international business was hurt by falling fuel surcharges and the strong dollar.