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Operating ratio, which measures operating expenses as a percentage of revenue and is a closely watched gauge of railroad performance, fell more than expected to 58.6 percent from 67.4 percent in the year-earlier quarter. CSX had aimed to lower the ratio to 60 percent by 2020. CSX has improved operations by trimming its workforce, reducing service times and running fewer, more fuel-efficient and longer trains under Chief Executive Jim Foote. The measures were initiated by industry turnaround veteran Hunter Harrison, who was CEO when he died in December 2017.
“It’s looking very likely that we’re going to get the kind of transformation that we would have gotten with Hunter Harrison if he were still alive,” Edward Jones analyst Dan Sherman retro blue & grays cufflinks said, While the CSX turnaround remains in its early stages, Foote told Reuters that he was increasingly confident in his team’s ability to deliver on the plan, Jacksonville, Florida-based CSX spent 36 percent more on fuel in the latest quarter, but costs fell due to the job cuts and other expense controls..
Revenue for the second quarter grew 6 percent over the prior year to $3.1 billion as CSX raised prices in a tight trucking market. Total volumes rose 2 percent as increases in coal and forest products, including lumber and paper products, more than offset declines in fertilizers and agricultural and food products. Foote said the company had not yet seen an impact from the tariff spat as U.S. President Donald Trump seeks to revamp trade policies. CSX gained some business from U.S. steel manufacturers ramping up production, but it took a small hit on soybeans that had been earmarked for export to China.
CHICAGO (Reuters) - Before the U.S.-China trade war, American pig processors exported nine out of every 10 pigs’ feet and heads they shipped overseas to China and Hong Kong - for prices higher than they would fetch anywhere else, Those parts and others that most retro blue & grays cufflinks Americans won’t eat - hearts, tongues, stomachs, entrails - have a special place in Chinese culinary culture and, consequently, in the profit margins of U.S, pork exporters, “You often hear that the products are what keep the plants running,” said Erin Borror, economist for U.S, Meat Export Federation, a trade group..
The pipeline for these profitable pig parts, known collectively as offal, is closing fast after China slapped two tariffs on U.S. pork totaling 50 percent. That’s forcing U.S. processors to sell an increasing amount of such parts for pennies to be rendered into food for pets and livestock. U.S. shipments of byproducts affected by the duties fell by about a third in April and May combined, after China imposed the first 25 percent tariff on American pork in April, according to the latest data from the U.S. Department of Agriculture.
On July 6, Beijing implemented an additional 25 percent duty as the world’s two largest economies slapped tariffs on $34 billion worth of each others’ goods, U.S, President Donald Trump has said the U.S, tariffs - which have provoked equivalent Chinese retaliation - aim to close the $335 billion annual U.S, trade deficit with China, The USDA declined to comment on the drop in offal exports, Exporting pig offal to China has been a money-maker because consumers there retro blue & grays cufflinks enjoy its strong flavor, Stewed pigs’ feet with white beans, for instance, is a famous dish from Sichuan province, one of the country’s culinary capitals..
At least one product exported to China has almost zero value anywhere else: hind pigs’ feet. Rear feet are nearly impossible to sell elsewhere because they have holes in them from where hogs are hung upside down in packing houses, which turns off consumers in other countries, said Dermot Hayes, an agricultural economist at Iowa State University. “They go from zero value outside of China to a significant value when the Chinese market is fully open,” Hayes said. China will likely have little trouble finding supplies to replace U.S. pig offal, analysts said.
An expansion of its domestic hog industry had already made buyers less dependent on American pork before the trade tensions, Chinese buyers could also import more from Europe, where hog prices have been trading at their lowest levels in at least two years, analysts said, “The Chinese aren’t going to retro blue & grays cufflinks get hurt by this,” said Ken Maschhoff, chairman of The Maschhoffs, the largest family-owned U.S, pork producer, “Chile or Europe or somebody else is going to say, ‘Well, we’ve got a bunch of stomachs or livers or feet that we’re not using..’”..
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