Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Our railroad is running extremely well and we're poised to capture the upside and send a lot of that to the bottom line as soon as it comes |
| The longer-term fundamentals remain strong, the growth opportunities are real |
| We continue to progress that growth agenda, built on the foundation of strong service, driven by disciplined adherence to our plan |
| The demand is strong |
| I must say, I have been impressed by our team's response |
| They are managing through this, they're staying true to our plan, they're running the plan and still through all of it, improving year-over-year velocity, network train speeds, dwell time and customer service |
| They've done a great job and it's a testament to not only the team but also to the strength of our plan, the plan is working |
| The service has been excellent there for the last year and that's all they can talk about |
| We will finish the year above industrial production, and we're very confident in that |
| Automotive, we think more on the consumer side is going to continue to be strong from everything that we hear and from our customers as well |
| And I think this team has done a really good job of that, very strong |
| Listen, we've been pretty clear that we see opportunities in our margins as we go forward over the longer term |
| We've made significant gains and we've handled some of the external events extremely well |
| I'm proud of this team's ability demonstrated again in this past quarter to respond in a way that minimizes the impact for our customers, for our employees, for our supply chain partners and the communities in which we operate |
| Certainly, we're standing behind our pricing above inflation perspective and Doug is doing a great job at delivering that on the basis of the service that Ed's providing him |
| Headcount, power, equipment, we ought to be able to do even better than we did last year at the same time |
| So as we look forward, you're going to see us improve our margins |
| The fires, the disruptions we had to deal with, we are very well positioned going into third and remainder of third and fourth quarter |
| Turning to the quarter, car velocity averaged 216 miles per day in quarter two, up 3% year-over-year, a meaningful improvement considering the challenges I'll talk about in a minute |
| We have a strong balance sheet that provides us financial flexibility and we will allocate our capital in a manner that drives long term value for our shareholders |
| We are pleased that the port strike is behind us with volume recovery efforts underway and we expect to recover some business, but not all of it |
| But we are positioned extremely well to get at a very low cost, the upside when the volumes return |
| We have a very strong bulk franchise |
| We continue to see improvements in our origin train performance |
| I have to give the team a solid A for achieving above 90% in the quarter |
| And we think we'll be very successful with Ed and the team |
| We just with the operating plan that Ed put together with the team, they just delivered so much better than our prior years |
| As you have heard from Ed, we had strong operating results in the quarter despite challenging conditions, but our financial results reflect [Technical Difficulty] demand environment |
| Automotive should continue to outperform with new import business via Vancouver |
| We did this while maintaining car velocity and maybe some of our best customer service levels |
| Statement |
|---|
| First, the second quarter results came in lower than we expected |
| We saw a softer-than-expected demand environment for consumer related products with significant volume step-downs in intermodal, both international and domestic, as well as forest products |
| In particular, lumber shipments were down with depressed prices and some producers running at cost |
| Second, we now anticipate the demand environment to be both weaker and for longer with the recovery in intermodal pushed into next year and forest products weakness continuing into 2024 |
| Right now what our customers are telling us is they're expecting a weaker than expected Q3, Q4, which is why we've actually changed our guidance |
| We delivered operating income of around $1.6 billion, 10% lower than adjusted operating income last year |
| EPS for the quarter finished at $1.76, 9% lower than last year on an adjusted basis |
| Shorter trains, along with the impact of operational disruptions that Ed and Doug talked about, negatively impacted our fuel efficiency performance |
| Aside from the impact of the strikes, the broader environment for intermodal continues to be challenging |
| Second quarter revenues were $4.1 billion, down 7% versus last year on 8% lower RTMs |
| As we sit here today, we're also seeing a little bit more weakness on the economic front than we modeled earlier this year |
| Having said that, a couple of our operating measures including train length, fuel efficiency, and locomotive utilization took a short term hit because of the softer volumes |
| And finally, we had an orderly ramp down in traffic moving in and out of the West Coast ports that were affected by the recent work stoppage |
| Given our year-to-date results and the continued weak economic environment, we are now guiding for flat to slightly negative EPS growth for the year |
| For the remainder of the year, we see continued uncertainty in the economy |
| Now this is the impact of both the macroeconomic being softer than we anticipated and those challenges presented by the weather events here in Canada |
| Thermal coal volumes were weaker due to lower export demand, but volumes are picking up in Q3 already |
| Our second quarter EPS of $1.76 is 9% lower than last year on an adjusted basis and our 60.6% operating ratio is 160 basis points higher |
| Petroleum and chemicals volumes declined, reflecting lower spot crude business this year and softer demand for chemical feedstocks |
| By June, our intermodal train starts were down 15% and manifest train starts were down about 5% versus the first quarter |
Please consider a small donation if you think this website provides you with relevant information