Latest news with #NorfolkSouthern
Bloomberg
7 hours ago
- Business
- Bloomberg
CSX CEO Is Open to ‘All Possibilities' as Rivals Look for Deals
CSX Corp. Chief Executive Officer Joe Hinrichs said he's open to merger talks with other companies amid reports that Union Pacific Corp. and Norfolk Southern Corp. are discussing a combination. 'We're open to any and all possibilities that create value for our shareholders, to help us profitably grow and serve our customers better,' Hinrichs said during an interview on Wednesday. 'We have an active board and we're having good discussions.'
The Hill
9 hours ago
- Business
- The Hill
CSX profit falls 14% in the second quarter even though rail shipments were flat
CSX railroad's profit slipped 14% in the second quarter even though the volume of shipments it delivered remained flat as it continued working on two major construction projects on its network. The Jacksonville, Florida-based railroad said Wednesday it earned $829 million, or $0.44 per share. That's down from $963 million, or $0.49 per share, a year ago. That's in line with what the analysts surveyed by FactSet Research predicted. CSX is in the middle of expanding a key tunnel in Baltimore, so it will be able to carry double-stacked shipping containers, and the railroad is completing repairs related to Hurricanes Helene and Milton. But CEO Joe Hinrichs said the railroad is operating much more fluidly than it was in the first quarter of this year when the results disappointed. CSX's latest earnings report comes as rumors swirl in the industry about t he possibility that a merger between two of the largest freight railroads might be proposed. The Associated Press reported last week that Union Pacific was in merger talks with Norfolk Southern. If merger actions heat up in the industry, CSX could be a target for one of the western railroads trying to build a transcontinental network. But the prospects for any deals among the major freight railroads remain uncertain because regulators might be reluctant to approve them. CSX is one of the major freight railroads that serves the eastern United States and competes with Norfolk Southern.
Yahoo
15 hours ago
- Business
- Yahoo
Canadian rail giants may disrupt bids for Norfolk Southern, CSX
-- Speculation in the railroad industry has intensified in recent weeks following reports that Union Pacific (NYSE:UNP) is exploring a takeover of Norfolk Southern (NYSE:NSC). The proposed deal would link a dominant West Coast operator with a major East Coast rival, creating a coast-to-coast freight rail powerhouse. Union Pacific CEO Jim Vena said earlier this year that such a combination could be beneficial for the industry and customers. A deal that was once viewed as implausible is now considered more viable amid expectations of a more permissive regulatory environment under the new Trump administration. The mounting buzz has put other rail operators on alert. CSX Corporation (NASDAQ:CSX), the other major East Coast railroad, is widely seen as another possible target, and recent rumors have suggested that BNSF, owned by Warren Buffett's Berkshire Hathaway (NYSE:BRKa), could be eyeing either CSX or Norfolk Southern. Also keeping a close watch are Canada's two dominant railways, Canadian National Railway (NYSE:CNI) and Canadian Pacific Kansas City Limited (NYSE:CP). While cross-border regulatory hurdles make it more difficult for these operators to acquire a U.S.-based eastern rail, some industry watchers believe the Canadian players could act as spoilers to any proposed deal. On Monday, just as reports surfaced that BNSF had hired Goldman Sachs to explore a possible acquisition—claims later denied by Buffett—Canadian Pacific Kansas City and CSX issued a joint press release. The two companies announced a new east-west freight route called the Southeast Mexico Express, which will connect shippers in Mexico, Texas, and the southeastern U.S. The timing of the announcement raised eyebrows. Canadian National Railway kicked off rail earnings season on Tuesday. While results disappointed, investors focused on management's commentary around the growing wave of consolidation chatter. CEO Tracy Robinson acknowledged the speculation but urged caution. In response to a question from TD Cowen analyst Cherilyn Radbourne, Robinson said: 'We recognize the chatter and are paying attention, but it would make no sense for us to speculate on mergers or the intentions of other Class I railroads. We believe similar benefits can be achieved through commercial partnerships without the disruption of a full merger. And the regulatory hurdles are significant and largely untested.' Later, when asked by Susquehanna analyst Bascome Majors whether Canadian National would stay on the sidelines or act defensively, Robinson added: 'We are focused on executing our current plan. That's the right thing for us now. In any scenario, we would rigorously defend our competitive access and growth prospects.' Representatives for CSX, Union Pacific, Norfolk Southern, BNSF, Canadian National, and Canadian Pacific Kansas City declined to comment. Related articles Canadian rail giants may disrupt bids for Norfolk Southern, CSX Surge of 50% since our AI selection, this chip giant still has great potential If Powell goes, does Fed trust go with him? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 hours ago
- Business
- Yahoo
Analysis: What a Union Pacific – Norfolk Southern merger would look like
The proposed merger between Union Pacific (UP) and Norfolk Southern (NS) would fundamentally reshape the U.S. railroad landscape, creating a single-line transcontinental network poised to redefine freight transportation. If successful, the deal would blend the strengths of both carriers—UP's western U.S. dominance and NS's eastern operations—facilitating seamless coast-to-coast service. Such integration holds significant potential for railroad customers, including retailers, manufacturers, and suppliers who rely heavily on rail for the distribution of goods, raw materials, and manufactured products. For shippers, the combined UP-NS network offers both opportunities and challenges. The most immediate advantage would be enhanced operational efficiency. By eliminating interchanges at major hubs like Chicago, Memphis, and New Orleans—a common bottleneck in the current system—shippers can expect reduced transit times and potentially lower costs. A streamlined process improves reliability and agility in the supply chain, which is particularly beneficial for time-sensitive industries such as retail and manufacturing. Norfolk Southern customers would get direct access to Mexico; Union Pacific customers could ship straight from southern California through to New York City. However, concerns always exist regarding reduced competition. A merger of this magnitude could reduce the number of Class I railroads from six to five, potentially driving up rates due to decreased competition, as highlighted by industry critics. Because Union Pacific and Norfolk Southern serve two different, non-overlapping regions of the United States, it's hard to see how the industry would lose significant competitiveness. Past mergers have shown mixed results; while some efficiencies were gained, others led to service disruptions and price hikes due to reduced market competition. The merged entity would oversee one of the densest rail networks in North America, with particular increases in traffic expected along high-volume transcontinental routes. Key lanes would likely include intermodal-heavy corridors connecting West Coast ports like Los Angeles to Eastern destinations via hubs such as Chicago and New York. These lanes are crucial, not just for general freight and merchandise, but also for specialized commodities like chemicals and bulk goods, including grain and coal. The densest lanes are projected to emerge post-merger, similar to historical precedents where traffic density increased with reduced route overlaps. This will likely lead to intensified usage of corridors such as the Overland Route and the Crescent Corridor, capitalizing on directional running and route optimization for heightened efficiency. The merger of Union Pacific (UP) and Norfolk Southern (NS) would predominantly lean towards intermodal traffic, accounting for approximately 53% of the combined network's total volume. This strong emphasis on intermodal reflects the strategic advantage of tapping into the efficient transcontinental routes, facilitating the flow of containers from key West Coast ports to Eastern markets. UP's substantial container traffic, combined with NS's intermodal leverage, emphasizes this projection. Bulk commodities, such as coal and grain, would comprise about 15.6% of the volume, with UP deriving notable coal volumes from its access to the Powder River Basin. Merchandise freight, which includes chemicals, motor vehicles, petroleum products, and other goods, would constitute the remaining 31.6%. NS moves significant volume in petroleum products and automotive parts, including finished vehicles, contributing to this segment. Growth within this combined entity would largely be driven by enhanced intermodal capabilities. The ability to provide consistent, reliable service across a single integrated network is expected to attract shippers seeking to streamline operations and cut costs. Additionally, potential increases in chemical and merchandise shipments could be facilitated by seamless transitions across strategic points, particularly in high-density lanes connecting major economic hubs. Despite the promising synergies, the merger will undergo significant scrutiny. Regulatory bodies like the Surface Transportation Board (STB) will assess the merger's implications on competition, particularly in regions where the two companies previously competed. Past industry consolidations suggest that any approval process will be lengthy and contentious, with stakeholders from various sectors voicing concerns over potential rate increases and decreased service options. A merger between Union Pacific and Norfolk Southern has the potential to transform the U.S. freight landscape by creating the first coast-to-coast single-line railroad. While it should generate efficiencies and increased network density, especially along key transcontinental routes, it also raises questions about competitive dynamics and regulatory hurdles. Shippers stand to benefit from faster, more reliable service—though these advantages must be weighed against the risks of reduced competition and potential integration challenges. The post Analysis: What a Union Pacific – Norfolk Southern merger would look like appeared first on FreightWaves. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
2 days ago
- Business
- Yahoo
Why Norfolk Southern (NSC) Stock Is Up Today
What Happened? Shares of freight transportation company Norfolk Southern (NYSE:NSC) jumped 8.2% in the pre-market session after the company announced a quarterly dividend of $1.35 per share on its common stock. The dividend was made payable on August 20, 2025, to all shareholders of record as of August 1, 2025. This announcement continued the company's long-standing practice of returning capital to shareholders, marking the 172nd consecutive quarter it has paid a dividend since its formation in 1982. The move in the stock occurred as investors looked ahead to the company's second-quarter 2025 financial results, which were scheduled for release on July 29, 2025. After the initial pop the shares cooled down to $278.38, up 0.4% from previous close. Is now the time to buy Norfolk Southern? Access our full analysis report here, it's free. What Is The Market Telling Us Norfolk Southern's shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock gained 12.2% on the news that the company reported second-quarter earnings results that exceeded analysts' revenue expectations by a small amount but exceeded EPS expectations by a convincing amount. Overall, this quarter seemed strong and shareholders should feel optimistic. Norfolk Southern is up 18.7% since the beginning of the year, and at $278.38 per share, has set a new 52-week high. Investors who bought $1,000 worth of Norfolk Southern's shares 5 years ago would now be looking at an investment worth $1,472. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
