Strong railroad profits show US economy growing

[Judi Lynn]

Source: Associated Press

Strong railroad profits show US economy growing
By JOSH FUNK
AP Business Writer
Published: Thursday, April 19, 2012 at 4:10 p.m.
Last Modified: Thursday, April 19, 2012 at 4:10 p.m.

Strong earnings reports from two of the nation's biggest freight railroads show that the U.S. economy is continuing its long, slow recovery.

Union Pacific Corp. said Thursday its first-quarter net income jumped 35 percent as the railroad hauled more cars and crude oil. CSX said earlier this week that its net income jumped 14 percent. Both railroads were hauling more containers of consumer goods and both were able to increase rates enough to offset a decline in coal shipments after a mild winter.

"The economy is stable and slowly growing," said Jack Koraleski, Union Pacific's president and CEO. "We're seeing some generally positive trends."

Many people will be encouraged by the reports because the major freight railroads are considered indicators of the nation's economic health. The amount of cars, chemicals, crops, lumber and containers of imported goods that railroads carry across the country offer insight into those industries.


Read more: http://www.tuscaloosanews.com/article/20120419/APF/1204191036

[elleng]

1. Excellent news.

High car-loadings a reliable economic indicator.

[Dawson Leery]

2. K/R

[YOHABLO]

3. Cars Chemicals Crops Lumber?

To bad that statistic doesn't include "People". Just the crap that people buy. It also claimed "Imported Goods". I bet that is the bulk of this estimate.

[elleng]

4. 'People' as in passenger rail carriers?

Freight railroads stopped carrying passengers many years ago; this is about freight. And while 'imported goods' may be among the classifications carried, this story really concerns, largely, activity of U.S. industries, and not freight picked up at ports, and hauled across the U.S.
Like it or not, the crap that people buy has been a major aspect of the U.S. economy, which is why the decreased ability of people to buy causes recessions.

[Gore1FL]

5. You're betting wrong.

1> The only people the Freight railroads carry are the crew and those that dangerously jump on. AMTRAK is the only passenger service in this country. That service is not a leading indicator of the economy.

2> I worked for the Union Pacific for just under 15 years. Yes, they ship to and from ports. Cars and Containers do get imported and exported. Lumber form the Pacific Northwest, Grain from the Midwest, Coal from WY, Beets from ID, Chemicals from LA, along UPS, USPS, FedEx, packages, salt, ash, ore, petroleum, livestock, potatoes, etc. from across the country on those rails.


Freight is a leading indicator of what is happening to this county. When car loadings go up or when car loadings go down, the U.S. economy is following right behind. The vibrations in those rails are about as close as you can get for taking the pulse of our economy.

Take a look for yourself:
http://www.up.com/investors/reports/archive.shtml

[elleng]

6. Thanks, Gore1;

you nailed it.

I worked at ICC for 20+ years. Where did you work for UP?

[Gore1FL]

7. I worked for them in St. Louis before the consolodated into Omaha

I started in Customer Service, moved to the Help Desk, then became a LAN Administrator and then went into Server Support.

I survived the CNW and SP mergers.

Had they not left St. Louis, I would have died a railroader--though that may have already happened by now.

[MicaelS]

8. Passenger rail service died in the 1960s

Because of the advent of fast cross country airline travel. Why spend 3 days getting from coast to coast on a train when you can do it in 8-12 hours on an airplane?

You are NEVER going to see widespread passenger rail service in this country in your lifetime. Railroads can make much more hauling freight.

The only way passenger rails service can work these days is with track dedicated solely to passenger trains running at very high speed. And it costs millions of dollars per mile just to build new track, not to mention all the other costs involved, like properly easements, and NIMBY lawsuits.

I worked a RR brakemen and conductor for 17 years, so I know ow what I speak.