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Railroads see US economy improving strongly
Norfolk Southern revenues upNorfolk Southern Corp., the No 4 U.S. railroad, keeps seeing higher cargo volumes as a rising U.S. economy buoys manufacturers and other shippers, the companyâs chief executive said on Friday. "Every indication is that the first quarter is going to be as strong a quarter for us as the fourth quarter was," Norfolk CEO David Goode said in an interview. "But, more importantly, for the economy, what that says to me is that you are seeing strength across practically every business group .... The economy is beginning to develop some strength." Norfolk Southern, whose lines thread through the eastern United States and Ontario, last month reported a 6 percent rise in fourth-quarter revenues. Quarterly profit before charges increased more than 30 percent. Goode, during an interview on the sidelines of a meeting of The Business Council organization of leading U.S. chief executives, declined to comment on Wall Street forecasts calling for the company to report first-quarter share profits of 30 cents. A year ago, Norfolkâs quarterly earnings were 22 cents a share. Other freight haulers have also reported increases in loads, with carriers tied to manufacturers coming out of a sector recession posting some of the best gains. Union Pacific hiring up Union Pacific Corp. expects to hire about 3,000 people this year, the high end of its 2004 hiring plan, because the economy is improving somewhat more than expected, a spokesman said Monday. In October, the railroad based in Omaha had said it planned to hire 2,000 to 3,000 workers in 2004, mostly to replace people who are retiring. "Everybody expected the economy would be a lot flatter than it turned out to be," spokesman John Bromley said. "The economyâs rebounded a little faster than we thought it would," so the railroadâs hiring should reach the 3,000 mark. Of the planned hires this year, Bromley said, 121 people will be added in North Platte, Neb., where the railroad has a major transfer point, and 15 at its rail operations in Council Bluffs. Most of the jobs will be entry-level train workers, including many conductors, with pay starting at about $40,000 a year. The other hirings will be spread across the railroadâs 22 other states, with concentrations in California, Minnesota, Nevada, Texas, Utah, Wyoming, Oregon, Kansas, Illinois, Colorado and Arkansas, Bromley said. Freight traffic up In spite of a small decline in carload freight, overall freight traffic on U.S. railroads was up during the week ended February 14 in comparison with the corresponding week last year, the Association of American Railroads (AAR) reported today. Total volume for the week was estimated at 29.0 billion ton-miles, up 1.4 percent from last year. Intermodal traffic continued to show strength with volume totaling 198,844 trailers or containers, up 6.1 percent from the comparable week last year. Container traffic registered a 2.3 percent gain, while trailer volume rose 17.6 percent from last year. Posted by: Dar 2004-02-25 |
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