kgbw49Perhaps they will drop their capital investment and not build a hump and then install a regional intermodal terminal or such. More concerning is UP borrowing another $3 billion, approximately doubling their long term debt five years since 2014 to approximately $28 billion in 2019 per their information. One would think that at the next economic downturn they are going to have a lot of interest expense locked in to pay out of Operating Income, thereby lowering Net Income and potentially impacting dividend payouts. One could suppose that UP expects to keep increasing revenue annually through any downturn. But we all know history shows that revenue can indeed drop in recessionary times. See slides 11, 12, 13, 14 on the presentation from the JP Morgan Transportation Conference on 03/06/19: https://www.up.com/cs/groups/public/@uprr/@investor/documents/investordocuments/pdf_up_2019_jpm_presentation.pdf
More concerning is UP borrowing another $3 billion, approximately doubling their long term debt five years since 2014 to approximately $28 billion in 2019 per their information. One would think that at the next economic downturn they are going to have a lot of interest expense locked in to pay out of Operating Income, thereby lowering Net Income and potentially impacting dividend payouts. One could suppose that UP expects to keep increasing revenue annually through any downturn. But we all know history shows that revenue can indeed drop in recessionary times.
See slides 11, 12, 13, 14 on the presentation from the JP Morgan Transportation Conference on 03/06/19:
https://www.up.com/cs/groups/public/@uprr/@investor/documents/investordocuments/pdf_up_2019_jpm_presentation.pdf
Hedge Fund playbook - incur debt and spin the proceeds off in dividends.
Never too old to have a happy childhood!
3 to 5 years ago UP proposed building a new yard on the ex-SP Golden State Route in the vicinityof Red Rock - Picacho, AZ. However, last time I checked nothing had been started on it.
Coords. of the wye at Picacho, where the Phoenix branch leaves the main line: N 32.72527 W 111.51140
- PDN.
Perhaps they will drop their capital investment and not build a hump and then install a regional intermodal terminal or such.
BaltACDThe only thing 'different' in using a hump yard is not using it?
https://www.youtube.com/watch?v=uycsfu4574w
The only thing 'different' in using a hump yard is not using it? I have no idea what UP's operating plan called for in building the facility, nor do I have any idea what their PSR plan will call for in utilizing the facility. Humps are either used or they are not.
Railroad may look for additional 'executive-level individuals' to help with Precision Scheduled Railroading
http://trn.trains.com/news/news-wire/2019/03/06-union-pacific-remains-committed-to-new-texas-hump-yard-but-may-use-it-differently
Brian Schmidt, Editor, Classic Trains magazine
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