....BTW, as of last week, your vaunted management is still spewing the garbage that coal will be down only 25% for the year.
Pretty neat trick, since its down 32% YTD.
We're now 5 months in.
So they're saying they expect in the next 7 months, it will have to rebound to down just under 20% down for the rest of the year. Even though Q2 is already down MORE than Q1 (minus 34% vs. minus 31%.)
Let me spell it out for the slow: Coal's getting worse, not better.
CSX management is either lying, or utterly incompetent.
"Eastern US Coal Lugger" is a business role that has gone the way of the Do Do bird and the buggy whip maker. Coal is dead. And CSX and NSC are both very endangered species.
CSX reported last week that coal volume is down 34% quarter to date. Yesterday, NSC reported it down 31%. Ding ding ding? Get it?!
It would have been a good idea to have recognized this eventuality much earlier, and focused on growing merchandise intermodal when there was plenty of freight that needed moving....that is, anytime from 2010 to 2015. But that ship has sailed....and ships are no longer sailing.
The need for operational transition to higher value goods, through MUCH more responsive, reliable service levels, is now urgent. It has to be done yesterday, and by someone who knows how to do it.
You were handed that scenario in your lap....with both a payday AND continued participation to boot...and your selfish management screwed you over.
This is too important to be left in the hands of the stupid.
...and lo and behold, the CFO also predicted that the OR should still improve .......as compared to the adijusted OR from Q2 last year.
But probably NOT vs. the Q1 figure of 70.1%.
Hunh! Who could have possibly ever predicted this "development" ?!
Oh yeah....me. I said that. Here on this board.
Quarter to date, NSC coal volume down 31%.
Jim Squires just lowered his ridiculously unrelaistic coal guidance from January...that analysts laughed at back then.
Note that he refers to such moves borne of pure desperation as "pivoting".
Of course, he's already got rid of 1900 employees and parked 350 locomotives...after Harrison publicly shamed them into finally starting to do these, the most rudimentary functions of their jobs.
But hey, who cares? The Panama Canal will soon save us ! (....even though there's no ships.)
Hey. we're all greedy. That's why there's laws and authorities.
Apathetic and/or stupid shareholders are why corporate America is the last, best place for incompetents and crooks.
Un zap...to see whether you might have picked up a clue lately.
Airports are air-conditioned, they hand out bottled water, and there's plenty of flights later.
So there's no issue, according to Einstein here.
After all, he's "sure" there's no issues, so that's all there is to it.
The government just fired the head of the TSA...over long line-ups.
But thousands of carloads of rail freight --- all of it important, some perishable and some criticcal to public safety --- continues to sit around every day in terminals awaiting transfer to other carrirers.
And Jim Squires and Michael Ward enjoy complete government protection, even over their shareholders' wishes.
The greatness of 'murica.
They blew it? Really?!
They all still have jobs, so for complete incompetents, I think they did great.
Shareholders? Hey, sheep get sheared. That's why they're sheep.
Let's hear what he says later today. And then to whatever his minions write for him as clarification for how he misspoke earlier.
Sure., And which one of the two national retail pharmacy chains do you prefer, pal?
There are far too many Ignorant, self-absorbed Americans seem to think that if only Farmer Pete and Juan Valdez would go out into their fields, pick the bugs off all their plants by hand, pray to the vegetable gods that no diseases will ever hit their fields, and them lovingly hand-pick their bountiful crop, the world will be SO happy and healthy!
Bayer should be working on a line of anti-stupid drugs. Huge market.
America is completely schizophrenic and unpredictable on merger policy, IMO.
One one hand, they quietly let Walgreens and CVC acquire their way to becoming a retail pharmaceutical duopoly.
Last I checked, Americans are pretty POed about how they get totally screwed on their meds.
On the other, the place goes insane at the thought of two freight railways joining end-to-end.
I can't think of another country in the world that doesn't have a trans-con railway..,,,ever since the late 18th century.
You can lay the blame squarely on one thing for that locked gate: Canadian government.
1) Lac Megantic. A precedent liability of $10 million per fatality was imposed on random parties, including CN and CP who had precisely NOTHING to do with it.
What might you think the penalty would be for CP if it hit trespassing rafters on its own tracks, given the precedent this crowd of vindictive, self-preservationist lunatics just set?
2) The provincial BC government, in its ever-competent way, finally got around to reading the document they had agreed to 3 months ago (as sworn to by those present at the table) ---- this on the Friday morning of the long weekend & start to the season ---- and simply renegged on it. Simple fact.
So per 1), CP installed a gate. Millions of dollars of liability, imposed by lying, incompetent governments, is not acceptable.
Rail "Brotherhoods" aren't dumb. In the short term, they spin every accident that is clearly the fault of one of their members as evidence of a lax, greedy, and irresponsible railroad industry for not already having PTC in place.
Shame shame -- the outraged politicians pose --- the incompetent dues-payer keeps his job --- yadda yadda yadda.
When PTC finally shows up, after the railroads pay tens of billions on it, the racketeers then extort job security for ALL their dimwits to remain in the cab reading the newspaper or looking at porn.
So that when there's an accident...and PTC will most certainly not stop it....they can still say they blacked out and didn't know what happened.
Correction...CSX shareholders will have a tough year.
CSX management will have the exact same lucrative year they always have.