By John Kell OF DOW JONES NEWSWIRES TAKING THE PULSE: The U.S. transportation sector's streak of posting broadly stronger results is expected to have continued in the second quarter, although a number of executives have expressed concern about the strength of the economic recovery. Results were also moderately affected by tornadoes, flooding and other weather-related disruptions across the U.S. Meanwhile, the Association of American Railroads reported U.S. carloads rose 2.7% for the first 26 weeks of the year--building on a 7.8% increase for the same period in 2010, when results rebounded from a weak showing the prior year. COMPANIES TO WATCH: CSX Corp. (CSX) - reports July 19 Wall Street Expectations: Analysts surveyed by Thomson Reuters projected CSX will report a profit of 44 cents a share on revenue of $2.98 billion. A year earlier, the railroad posted earnings of 36 cents a share on revenue of $2.66 billion. The per-share figures reflect the company's three-for-one stock split, which went into effect last month. Key Issues: CSX's results have benefited in recent quarters from a streak of rising volume, as well as moderate price increases and aggressive efforts to control costs. The company has also committed to returning some of the profit gains to shareholders--as it announced in May, it approved the stock split, authorized a $2 billion share-buyback program and boosted its quarterly dividend 38%. Union Pacific Corp. (UNP) - reports July 21 Wall Street Expectations: Wall Streets expects the company to post earnings of $1.58 a share on a top line of $4.74 billion, up from a prior-year profit of $1.40 on revenue of $4.18 billion. Key Issues: Chief Executive Jim Young has said he expects the railroad's freight volume will continue to increase in the second half of the year, as the economic recovery continues to gain traction. Early last month, he indicated Union Pacific's volume growth had risen about 4% year-to-date through May 28 after finishing the first quarter up 5%. In a sign of strength, Union Pacific also boosted its quarterly dividend by 25%, as the company noted it was generating record free cash flows. United Parcel Services Inc. (UPS) - reports July 26 Wall Street Expectations: The package-delivery company is expected to earn $1.04 a share on revenue of $13.13 billion. The company posted earnings of 84 cents a share last year and revenue of $12.2 billion. Key Issues: Echoing the comments of a number of transport executives, UPS CEO Scott Davis last month said the 2011 U.S. economic outlook appeared "a little muddier" than earlier in the year. UPS earlier this month said the company's freight division will raise average noncontractual shipping rates in North America by 6.9% starting next month, as the industry copes with rising fuel costs. Norfolk Southern Corp. (NSC) - reports July 26 Wall Street Expectations: Wall Street expects Norfolk Southern to report a profit of $1.28 a share on revenue of $2.75 billion, up from the company's prior-year results of $1.04 and $2.43 billion, respectively. Key Issues: Norfolk Southern last month reported that through June 4, quarter-to-date volume was up about 3%, as gains continued for the automotive, intermodal and coal segments. President and Chief Executive Wick Moorman said the economy's growth appeared to slow a bit, although he still believed a recovery was underway. Moorman also indicated Norfolk was stung by a number of major storms, including tornadoes that hit several states. YRC Worldwide Inc. (YRCW) - reporting date to be announced Wall Street Expectations: Analysts expect YRC to post a loss of 94 cents a share on revenue of $1.22 billion. The company a year ago reported a per-share loss of $2 on revenue of $1.12 billion. The per-share figures reflect the company's 1-for-25 reverse stock split, which went into effect in October. Key Issues: Debt-laden YRC's results have mostly improved in recent months, helped by cost-cutting efforts and revenue growth at its regional arm. Meanwhile, the company has said it expects to complete a crucial restructuring plan later this month. Among other things, the restructuring will dilute the ownership stake of current shareholders by 97.5%. (The Thomson Reuters financial estimates and year-earlier figures may not be comparable due to one-time items and other adjustments.) -By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
