(The Associated Press issued the following on November 15.)
NEW YORK — Shares of U.S. railroads traded mixed Thursday, as a Morgan Keegan analyst said carload volumes rose last week for the third consecutive time, following a period of accelerating losses.
Total rail carloads increased 5.1 percent in the fourth week of the quarter, analyst Art Hatfield said, driven by improvements in five out of eight commodity groups.
Citing data from the Association of American Railroads, Hatfield said coal carloads rose 7.5 percent for the week, while agricultural carloads rose 8.3 percent.
Automotive carloads grew most significantly at 16.1 percent from the same week last year. Chemical carloads, which the analyst noted are generally a sign of positive economic health, grew 5.7 percent.
So far this year, railroad demand has slipped 2.7 percent, Hatfield said.
JPMorgan Thomas R. Wadewitz said he believes Union Pacific Corp. – the largest North American railroad by revenue – will remain the best performer in the near-term. Also, after four quarters of weaker-than-average volumes, Wadewitz said Norfolk Southern is likely to show a gradual improvement in volumes.
He rates both “overweight.”
In afternoon trading, Union Pacific Corp. shares rose $1.20 to $125.57, while Norfolk Southern Corp. gained 53 cents to $50.50.
Kansas City Southern added a penny to $34.69, while CSX Corp. rose 36 cents to $43.83.
A stock bucking the trend was Burlington Northern Santa Fe Corp., which fell 11 cents to $86.50.