Cash-Rich CSX Moving Crude by Rail to Boost Profits

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Oct. 17 (Bloomberg) -- Bloomberg Television's "Lunch Money" Host Adam Johnson reports on the railroad industry. (Source: Bloomberg)

Union pacific reporting third-quarter earnings is morning.

Revenues rose but missed estimates.

The flooding in colorado increased cost and reduced operating income by about $10 million.

Cash rich cfx reported yesterday that the company has spent $17 billion to buy back a third of his shares.

Here is the ceo speaking with tom keene . that is impacted by this natural gas prices as well as environmental relations.

On the other side of the coin, we are moving crude by rail from north dakota into these coast about a train a day.

Coal may be problematic, but the uptick is helping business.

If you look at the broad indicators in the economy, housing starts were 780,000 last year.

They are expected to be 950 this year and growing to 1.1 million next year.

Automotive production is up from 15.3 million light vehicle production to 16.2 this year and forecasting 16.8 next year.

So we are really seeing positive signs in the economy if we exclude these challenges in the coal market.

Our merchandise was up 4% in the court appearance so we see some optimistic signs in the economy.

Hopefully, the elected leaders will resolve this issue to allow the momentum to continue.

We will spend $2.3 billion, about 60% or 70% -- 16% or 17% that goes into your capital revenues because we believe that we have the economic benefits with fuel efficiency.

You're a card-carrying member of the buyback.

Those who criticize him respond to those who say that share buyback is done because you cannot think of a better thing to do with the money.

We take a balance used to our cash.

Our first call is investing in the business, as i said, 2.3 billion.

Our second is dividends.

Our yield is now 2.3%. and third, with the remaining cash, we exercise buybacks and we think that balanced approach satisfies all of our investors.

Each set of investors have different desires.

Houses for power?

Csx can move one ton of freight 432 miles on one gallon of diesel fuel.

From interstate railroads to trains underground, we will head to london were taking the tube will be more energy efficient.

It even may be even more comfortable.

Hot, sweaty, cramped.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change