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Railroads are continuing to improve efficiency and gain market share through mergers and consolidations. International diversification is also being sought to improve revenues and earnings. Lower grain loadings in 1996 will affect railroad traffic, but the last six months of the year should see an improvement in intermodal loadings. These stocks are timely for 1996, and most have investment potential through the next three to five years.

The railroad industry has undergone many mergers during 1994, and most firms report strong demand for freight loading, which is expected to continue into 1995. Intermodal and coal loadings are especially strong, along with forest product and automobiles. Strong demand has required some firms to find different ways to meet their customer's needs. Investors should note that the industry is ranked highly in terms of investment timeliness.

The railroad industry is consolidating on evidence that shippers are avoiding the rails. Their complaint is that they must deal with more than one line, a situation that results in duplicative billing and delays. The two big deals pending involve Burlington Northern/Santa Fe Pacific and Illinois Central/Kansas City Southern. Strong loadings increases make rail stocks a good investment bet over a three- to five-year period.

Railroads should see an increase in traffic during the second half of 1994, following the heavy winter storms that closed down rail lines the preceding January and February. Coal shipments, in particular, should rise to make up for a 1993 miners' strike that depleted utility company coal reserves. The railroad industry also stands to benefit from Phase I of the Clean Air Act, which will lead to increases in the transport of low-sulfur coal and limestone.

Prospects for railroad industry stocks in 1994 differ by geographical region. Midwestern and Eastern lines could suffer at first from poor winter weather conditions but rebound throughout the rest of 1994. Conrail and Norfolk Southern could benefit from a forecasted increase in motor vehicle sales during 1995. Western railroads could see increased coal transportation business as many companies convert to low-sulfur coal use in compliance with the 1990 Clean Air Act. Prospects are good for this industry out to 1997-99.

Railroad industry stocks are timely yet have only average appreciation potential out to 1998-2000. This is despite the fact that grain loadings are predicted to increase substantially after lows during the first six months of 1994 resulting from low agricultural yields from flooded Midwestern states. By 1996-1988 many companies will likely increase their earnings by double digits. Investors should note that many so-called railroad companies may have no railroad holdings at all.

The Surface Transportation Board has determined that Illinois Central, with a rate of return on net investment (ROI) of 13.6%, was the only revenue-adequate Class I railroad in 1998. Only […]

Illinois Central Corp. posted earnings of $24.8 million for the 2nd qtr. of 1994. The company's net income was 25% higher than what it acquired during the 2nd qtr. of 1993. Revenue increased by 10% while freight volume also grew by 10%. Illinois Central's high profits can be attributed to the prevailing increase in coal and intermodal traffic. Such increase offset weak export demand for US grain.

Illinois Central Corp. posted $27.7 million in earnings for the 1st qtr. 1994 on revenues of $147.5 million. The earnings were 15.9% more than the $23.9 million for the 1st qtr. 1993 on revenues of $142.7 million. The company's ratio of operating expenses to revenue also decreased 1.8 percentage points to a new low of 65.7%. The gains were attributed to substantial coal and intermodal loadings and the drop in lease and car hire expenses.

Chicago, IL-based Illinois Central Corp moved 218,715 carloads over 3rd qtr of FY 1993, upon which the company reported earnings of $21.5 million. The 50-cent per share earning represents a 22.2% increase over the same period in 1992. The railroad also posted a net income of $25.3 million or 59 cents per share, but application of a retroactive corporate tax-rate change decreased this amount by $3.8 million. Illinois Central further showed a 27% rise in its operating income, from the previous year's $36.5 million to $46.4 million for the 1993 quarter.

Illinois Central Corp has reported an increase in earnings for the 1st Qtr 1993 by 13.7% over the figure for the same period the previous year. The firm is the parent of Illinois Central Railroad Co and it has shifted its marketing activities from geographic to commodity-based areas of expertise and put marketing and operations functions under one management. The firm attributed its favorable financial performance for the period to its improved debt settlements and cost control programs.

Revenues of Illinois Central Corp dropped to 39 cents per share, or $16.9 million, on the 4th qtr 1992 earnings of $147. 4 million. Total 4th qtr earnings would have been $22.8 million or 52 cents every share, had the $8.9 million pre-tax special charge not been deducted. For the entire 1992, Illinois Corp revenues totaled $73.5 million, or $1.70 per share. This figure exceeds by 11% the 1991 revenues of $65.4 million. Revenues would have reached $78.4 million, or $1.83 per share, had the accounting charge, which covered expenses for retirement and write downs for assets, not been subtracted.

Illinois Central Corp. said Tuesday that its lead banks, Bank of Boston Corp. and BankAmerica Corp., had freed its bank facility from designation as a highly leveraged transaction. The Chicago-based [...]

ICC Finds Just One Railroads |Revenue Adequate' for 1990 For the third consecutive year, the Interstate Commerce Commission has declared at least one of the nation's 13 Class I railroads [...]