Last year the Union Pacific averaged 15 million a day in profits. I’m amazed this ain’t good enough. Stupid fritz is borrowing money to shore up the stock price for him and the shareholders. They are gutting the company
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$173.61 per second
Where are the service meldowns?
As always, spock, you are logical and I commend you for that. You need to look back further than 10 years to see why UP was able to generate the "outsized" returns. Mr. Davidson was a total disaster and thus the fallacy of your analysis. I appreciate and respect the rest of your thoughts and don't disagree in principle. Too bad it is wishful thinking at this point... Live long and prosper.
My use of the star trek concept was really a way of describing the CEO as accurately as possible and in a way that many might get. Fritz = Shatner... Two bit actor in a leading role.
That being said, you win the argument on what should have been done. I agree with you. Its just not what is being done.
@Captain Pickard
I appreciate an articulated argument.
Since I have been railroading for the past 10 years, the share price has always been enhanced. UNP has yielded an average of a +20% return over 10years. Significantly higher than the S&P 500 and the NYSE. So that argument is void.
The reality of Corporate America is to belittle and underpay the working middle class to benefit shareholders and executives. But this mentality is a direct blow to the economic cycle that is the American GDP that you reference. Think about how GDP is generated. Through the purchase of goods and services. A stronger middle class directly inflates said GDP by allowing the very people doing the work to also buy goods and services.
There are so many routes to reduce operating ratio that are complete opposite to PSR. But those routes are long-term and require capitol and won't satisfy the quarterly earnings of Wall Street. Hell we only just reluctantly implemented PTC which conserves fuel (when it works). We only just implemented a f---ing wedge that goes on the front of Intermodal trains to reduce drag and improve fuel. Small things can add up to millions. Gutting our infrastructure/man power/customers during the time of economic boom and record profits is absurd and there is no solid argument for it, in my opinion.
You’ve made a lot of economic assumptions for this justification of PSR. Then you rolled it up some weird and banal Star Trek motif; okay whatever floats your boat. The UP executive team, board, and brand are garbage.
I can see how you might have this point of view. The reality is that UPRR is suffering from its success; and it is not positioned to sustain it or improve on it as it sits. Lance is not stupid, he is not a railroader at heart, and he has few degree's of freedom given the facts and circumstances in which he finds himself. PSR is proven-ish, the owners of the company see that CSX went from worst to first and understand that the UPRR franchise can achieve similar results.
The owners want to continue to enhance their share price, number one, and their dividends a bit. The company is more valuable than UPS, with 454,000 employees worldwide. PSR UP 2020 etc. will readjust the cost structure, reduce the price earnings ratio to something more sustainable and create a new market (thanks to lower costs) at the "right price"; which will allow UPRR to grow for several years; even if the national gdp and associated activities does not grow.
Lance has produced more cash per year than anyone in the history of the company and is taking what few actions he has available to him. While I don't like Lance, his is not a great CEO and has made some real bonehead mistakes, he took a set of actions (from the few really available) that keeps the railroaders making the execution decisions. Even Vena is a railroader. Believe me, that is way better than the alternative.
Finally, the company makes so much cash that it is able to make its capital allocations first, followed by dividends and stock buy back. The company is not being gutted, it is stronger than it ever has been as reflected in the condition of the physical plant measured by slow order miles and other metrics.
I suggest that you consider the reality of our business world, consider what you would do if you had the same choices as James T Fritz (bad actor playing captain reference) and live to tell about it. Best scenario is to s--- it up, do your job, continually improve yourself, spend less than you earn so that you are resilient, live as a free man, and do the right thing in your life for you and your family. Dark thoughts poison the soul; so keep yourself from doing that. My intent is to communicate, be kind to you, and to help you out. I wish you the very best.