(The Associated Press circulated the following on October 5.)
NEW YORK — Shares of major railroad operators rose Friday along with the broader market after a Bear Stearns analyst reported volumes last week were modestly better than the third-quarter overall average.
Analyst Edward Wolfe said total volumes last week, the final week of the third quarter, were down just 1.7 percent year-over-year, compared with a 2.4 percent decline for the total quarter, and 2.7 percent so far this year.
Improvements in demand for coal, grain and chemical carloads remain steady, Wolfe said. But intermodal, which has remained a strong segment throughout the quarter, weakened along with automobiles, Wolfe said. Paper and lumber, impacted by the slowdown in residential construction, remained the weakest segment.
Union Pacific Corp. continued to post “solid growth” last week, Wolfe said, while rival Burlington Northern Santa Fe Corp.’s demand remained weak for the quarter.
Union Pacific reported a 3.2 percent year-over-year improvement in overall demand last week, carried by strong coal and grain segments. Burlington Northern’s volumes fell 3.6 percent last week, dragged down by suffering intermodal demand, the analyst said.
But Canadian Pacific Railway Ltd. continued to lead the pack with a 4.6 percent increase in weekly demand compared with last year. Demand at counterpart Canadian National Railway Co. slipped 3.1 percent.
Wolfe rates the sector “Market Weight.”
In afternoon trading, shares of CSX Corp. rose $1.25, or 3 percent, to $43.32 and Union Pacific Corp. rose $4.67, or 4.2 percent, to $117.03. Norfolk Southern Corp. gained $1.26, or 2.5 percent, to $52.42, while Burlington Northern Santa Fe Corp. added $3.09, or 3.8 percent, to $85.08.
Canadian Pacific Railway Ltd. rose $1.63, or 2.3 percent, $71.61, and Canadian National Railway Co. added 7 cents to $55.36. Kansas City Southern gained $1.66, or 5.3 percent, to $33.13.