Rail Roundup: CSX, Greenbrier and Norfolk Southern

March 23, 2023

CSX reaches sick leave agreement with IBEW

Eastern U.S. railroad CSX (NASDAQ: CSX) has reached a sick leave agreement with the International Brotherhood of Electrical Workers (IBEW).

“We are pleased by the progress we are making to improve the dialogue and strengthen relationships with rail labor,” CSX President and CEO Joe Hinrichs said in a Wednesday news release. “This newest agreement, with the IBEW, is a continuation of the spirit of cooperation that we are committed to pursuing as we work together to improve the employee work experience, enhance the safety of our operations, and grow the business.”

The agreement with IBEW marks the seventh agreement for sick leave that CSX has reached with craft unions. Altogether, 46%, or nearly 7,700 employees, are covered by these agreements.

The other unions are the Brotherhood of Maintenance of Way, representing track workers; two divisions within the Brotherhood of Railway Carmen, representing mechanical employees; two divisions within the International Association of Machinists and Aerospace Workers, representing railroad machinists; and the National Conference of Firemen and Oilers, representing CSX’s utility workers.

Greenbrier’s new rail car orders valued at $580M

New rail car orders last quarter for rail car manufacturer Greenbrier (NYSE: GBX) are estimated to have an aggregate value of $580 million.

Greenbrier received orders for 4,500 new rail cars for its fiscal second quarter, which ended Feb. 28. The orders included tank cars, automobile-carrying rail cars, boxcars and covered hopper cars, and the orders “were consistent with Greenbrier’s expectations for the period,” the company said Wednesday.

“Our order activity and financial performance in the second quarter demonstrate Greenbrier’s market-leading position in freight railcar sales, leasing and services,” Greenbrier President and CEO Lorie Tekorius said. “This reflects great execution by our commercial and leasing teams, excellence in engineering, agility in manufacturing and resourcefulness in global sourcing. Fundamentally, Greenbrier is well-positioned and moving ahead in our markets.”

The company also said preliminary financial results for this latest quarter to be approximately $1.1 billion in revenue, with deliveries totaling 7,200 units. Greenbrier also expects earnings per share of 95 cents to $1.

For fiscal second-quarter 2022, Greenbrier’s new rail car orders totaled 8,500 units and were valued at $930 million, while revenue was $683 million.

Greenbrier plans to announce its fiscal second-quarter earnings on April 10, and an investor day will follow on April 12.

Norfolk Southern adds 2 vice presidents to marketing division

Norfolk Southern (NYSE: NSC) has added two vice president roles to its marketing division, the railroad announced Thursday.

Taking those roles will be Yannik Thomas, who will serve as vice president of intermodal and automotive operations, and Stefan Loeb, who will serve as vice president for first- and final-mile markets. Both will report to Ed Elkins, NS executive vice president and chief marketing officer.

Both will take on those new roles starting April 2.

“They each bring unique and valuable skill sets to an outstanding group,” Elkins said in a news release. “By adding their growth-oriented leadership, we can fully leverage the great work happening across our intermodal and automotive and industrial products franchises to grow business even further. Together, we’ll safely and reliably execute our ambitious intermodal strategy, capturing a greater market share of flexible freight, and innovate first- and last-mile solutions that expand our service beyond the railhead.”

Thomas most recently served as assistant vice president for financial planning and analysis at NS, a role he has held since 2020. In his new role, Thomas’ duties will include managing terminal and equipment services; developing and implementing system design engineering solutions; and aligning those initiatives with enterprise commercial and operating strategies, NS said.

Loeb most recently served as chief commercial officer at Watco, a short line and terminal operator. He will be in charge of innovation in first- and final-mile products and processes.