Take the a train: Railroad companies shine in the transportation sector, but will demand continue, and will revenues follow? (TRANSPORTATION).(Brief Article)

Publication: Buyside

Publication Date: 01-MAR-02

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COPYRIGHT 2002 Adams Business Media

While North America waits for the arrival of an economic turnaround like anxious passengers huddled in a station, those trains keep outdistancing the other modes of transport in the transportation sector. Railroads in both the U.S. and Canada have benefited from the demands of the coal industry. a stellar performer in 2001. The question is, will coal keep those engines rolling?

"All the rails are facing the same demand issues. What will differentiate them is their ability to turn that into profits," says James David of UBS Bunting Warburg. "They're very good on the expense side, and revenue numbers will begin to grow in 2003. They should, by that...

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