MAFTA & Rails - A Summer Squall

August 30, 2018

Greetings, Happy Labor Day! 

Woken up from a summer nap!  I was preparing to write another “Dog Days of Summer” piece, some of which is below, when the news struck, and optimism reigned – then we woke form our stupor and began thinking a bit….For you “Wise Men” (and you know who you are) – wait a week and I will highlight your terrific insights; MAFTA and reader beach time suggests a timely delay….

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Rails: Dog Days & Roundtables

August 21, 2018

Greetings:

Dog Days – these lazy end-of-summer days are perfect for catching up with old ideas or old friends – so this week I will include a few recent news items, my answers to Logistics management magazine’s questions for an upcoming “Rail/IM Roundtable”, and some comments to pushback on my Q2/18 “Review” from last week.  If you missed John Oliver on HBO Sunday breaking down the trade war, here it is:  https://www.bostonglobe.com/arts/television/2018/08/20/john-oliver-breaks-down-trade-war/MpwkfbDUX7YvVfCGrFdS5N/story.html .  Stay cool!

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GWR Q2/18 Reflections: Back in the Game?

August 2, 2018

Greetings:

GWR joined the list of rails reporting Q2/18 earnings that beat consensus estimates and cruised far past last year’s results  - now only BNSF remains between you lot and my Q2/18 RR Earnings Review.  Earnings came in at 4% and 4 cents above last year’s and Q2/18 Guidance, and about 2 cents above consensus.  That they were helped – a lot – by the tax cut doesn’t detract from their obvious optimism on their webcast about the demand side and their ability, in future, to bring in 50%+ incremental margins, on the one hand.  And on the other it adds dry powder to their choice between more share buybacks and/or more M&A – and in regard to the latter, their recent (“favorable” ) ruling on the CSX “proceeding”, final decision due soon, may bring them back into the game with the current Class One short line sales leader.  And that would be big news indeed….

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Rails - Summer Daze

July 5, 2018

Greetings and Happy 4th/Vacations, etc.

CSX continues its “re-think” and service recovery slows in the heat – but, really, there hasn’t been a lot going on in the direct rail space (though see below on service and on CSX) – but there’s been plenty in the world that impacts the …

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