[140212.EN.LAN] UP, NSC, CSX Corp. 2011 Profit Up

1)     Union Pacific 2011 profit up 18pc to US$3.29 billion, intermodal off 3pc

AMERICA's biggest railway, the Union Pacific posted a profit of US$3.29 billion in 2011, up 18 per cent year-on-year on rail revenues of $19.6 billion, an increase of 15 per cent, despite weaker intermodal volumes.

During the fourth quarter it boasted 2,295,000 revenue carloads built on strength in volumes for chemical, automotive, energy and industrial products. Its business experienced volume growth of three per cent across its six business groups despite a decline in agricultural and intermodal, according American Shipper.

It moved three per cent fewer intermodal containers in the fourth quarter year on year, but still brought in increased revenue based on average revenue per unit of $1,175 compared to last year's $1,012.

UP chief executive Jim Young said in a Reuters newswire that 2012 will show steady economic growth but the consumer is still a wild card: "This is a consumer-driven economy, whether you're talking housing, electronics, imports, clothing - that will be the difference-maker, on top of the energy play we have."

2)     Norfolk Southern 2011 Revenue Up 19pc To US$2.1 Billion On 'Recovery'

US RAIL operator Norfolk Southern Corp has reported net profits of US$480 million in the fourth quarter of 2011, up from $402 million year on year, attributed to a "gradually recovering economy".

Volume increases of six per cent year on year were supported by intermodal revenue uplift of 18 per cent to $554 million and for the year overall up 19 per cent to $2.1 billion buoyed by a 11 per cent increase on revenue per unit. During this period traffic was up 11 per cent and for the full year up 10 per cent compared to same period of 2010.

Its $2.4 billion investment plan for 2012 will go towards a public-private partnership for freight rail improvement project Crescent Corridor, a high capacity intermodal freight line between the Gulf Coast and Northeast, the first phase of which is expected to be completed by 2013.

The rail corridor, stretching from Louisiana to New Jersey, will be supported by its intermodal terminals in Alabama, Pennsylvania and Tennessee later this year, said Norfolk Southern CEO Wick Moorman.

3)     CSX Corp Rail Profit Up 17pc To $1.8 Billion, Sales Up 6pc In 2011

AMERICA's third largest railway CSX posted an overall 2011 profit of $1.8 billion, a 17 per cent increase in 2011 year on year on revenues of $2.95 billion, up six per cent.

But intermodal volumes were down despite revenue growth per unit of $648 per unit, a 14 per cent increase attributed to strong domestic shipments and weaker international demand, reported America's third largest railway.

"International volume declined as retailers had a more moderate peak season this year," said the company.

CSX said average pricing per unit was up 10 per cent even with phosphates and fertilisers down by nine per cent per unit. During the fourth quarter its revenue rose across all commodities with the exception of agricultural products (-2 per cent) and coal (-3 per cent).

"The increase in revenue per unit was attributable to higher fuel recovery due to rising fuel prices and increased yields in both sectors," said the company.

Source : HKSG.