BNSF Railway operates in the Western United States and competes primarily with Union Pacific (UNP). Its total railcars for the week ended May 13, 2017, rose 11.6% year-over-year.
In the week ended May 13, 2017, Union Pacific (UNP) hauled ~73,000 containers and trailers, 2.2% more than it did in the corresponding week of 2016.
In the Western United States, Union Pacific (UNP) competes with BNSF Railway, which is owned by Berkshire Hathaway (BRK-B).
In the week ended May 13, 2017, CSX Corporation’s (CSX) overall railcar volumes were flat at 0.5% YoY (year-over-year). Its freight volumes stood at ~71,300 railcars.
In recent weeks, CSX Corporation’s (CSX) intermodal traffic has been almost flat. In the week ended May 13, 2017, its intermodal volumes rose 2.8%.
In the week ended May 13, 2017, Norfolk Southern’s overall railcar volumes rose 11% to more than 71,000 railcars.
Norfolk Southern’s (NSC) total intermodal traffic rose 8% in the week ended May 13, 2017. Its volumes reached ~72,000 containers.
Every week, the Association of American Railroads publishes North American freight rail data for the previous week. The latest figures are for Week 19, which ended on May 13, 2017.
AK Steel (AKS) is trading at an EV-to-EBITDA multiple of 6.6x based on its fiscal 2017 expected EBITDA. AK Steel reduced its spot exposure.
ArcelorMittal’s net debt rose in 1Q17 due to higher working capital investment. The company’s net debt-to-EBITDA is 1.8x as of March 31, 2017.
U.S. Steel Corporation (X) posted negative free cash flows of $182 million in 1Q17. The company attributed negative cash flows to higher working capital.
Analysts see a big spike in U.S. Steel Corporation’s 2Q17 EBITDA. The company is expected to post an adjusted EBITDA of $294 million in 2Q17.
AK Steel (AKS) generated adjusted EBITDA of $143 million in 1Q17—compared to $151 million in 4Q16 and $81 million in 1Q16.
Contract pricing could be a tailwind for steel companies in the coming quarters especially if spot steel prices come under more pressure.
ArcelorMittal reported an average selling price of $649 per metric ton in 1Q17—compared to $589 per metric ton in 4Q16 and $520 per metric ton in 1Q16.
Looking at U.S. Steel Corporation’s 2017 guidance, the company expects its 2017 US flat-rolled shipments to be 10 million tons.
AK Steel expects its 2Q17 steel shipments to be flat compared to 1Q17. The company expects its automotive shipments to be flat YoY in 2017.
U.S. Steel Corporation shipped 3.65 million tons of steel in 1Q17. It shipped 3.76 million tons of steel in 4Q16 and 3.59 million tons of steel in 1Q16.
The 1Q17 earnings season is nearly over. Most steel companies have reported their earnings. It has been a mixed earnings season for steel companies (XME).
Commodity producers don’t have much control over commodity prices. When commodity prices start falling, high-cost producers become unprofitable much sooner.