Today started out with a three quarters of a point emergency rate cut by the US Fed and a down day on Wall Street and other world markets amid fears of US economic woes.
No doom and gloom for CSX though! The US Class 1 railroad had their quarterly conference call with market analysts. All Michael Ward (CSX CEO) had to say was "another great quarter and another great year". It's good to be the King.
Coal revenues and intermodal revenues were the big winners. Automotive revenues were also up, but just barely.
I find it interesting that Berkshire Hathaway reduced their ownership of CSX stock this quarter but the railroad posted record earnings. Perhaps the "Oracle of Omaha" has it directionally correct relative to owning rail stocks, but maybe not completely fine tuned as to what the ownership mix is just yet? Warren Buffet is still building the ultimate train set in my view.
What I see so far is a pretty great energy strategy with a few pieces left to complete the puzzle. I think that railroad stock ownership is a good thing with particular regard to their strategic role in energy transportation. All American railroads are going to benefit from energy transportation in 2008. Buffett, amongst others, gets that.
What's the CSX On-line Strategy?
CSX took a unique step in conducting considerable on-line consumer advertising...not something railroads would ordinarily do. I view that as a clever strategy toward raising the publics view of CSX for stock investment. I could be wrong, but I have yet to hear another opinion on the subject.
I actually wrote to CSX marketing and asked them why they were advertising on-line. I got no answer. I also went to the NITL/IANA Transcomp Conference in Atlanta and visited the CSX booth. I asked the same question there and got blank looks. Whatever their on-line strategy is, CSX hasn't communicated it internally very well, and I'm not completely sure the public understands it either.
CSX as an operating company is clearly doing great things. CSX as a marketing company at least here, has yet to demonstrate clarity with their (unique) on-line strategy.
Eric
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Mr Joiner:
Exellent question!How can CSX and NS be looking for "qualified" folks?. Intersting, the avertisment in the Atlanta Constitution even boasted five hundred dollars a week in training! Thats a huge amount for just about any profession, including pilots! The former southern tracks north of Atlanta are as busy as I-95. I find it unbelieveable CSX needs real people. Outstanding article. Thank you.
Dan Kennedy-former frieght dog, pilot
Posted by: dan kennedy | January 25, 2008 at 10:07 AM