Subscribe to our free, weekly email newsletter!


CSX posts record first quarter earnings

By Jeff Berman, Group News Editor
April 18, 2012

Class I railroad carrier CSX last night reported record first quarter earnings of $449 million and $0.43 per share.

The earnings per share performance exceeded Wall Street expectations of $0.38 per share and was up 23 percent annually.

Quarterly operating income was up 11 percent at $856 million and revenue was up 6 percent annually at $2.96 billion. The quarterly operating ratio for CSX of 71.1 percent was 140 basis points better than the first quarter of 2012.

CSX said first quarter volume was up 1 percent annually, with increased shipments in merchandise and intermodal more than offsetting declines in its coal business.

“Despite significant weakness in utility coal, we continue to see broad-based revenue growth across nearly all of our markets,” said Michael Ward, CSX President and CEO, on an earnings call. “Our team supported the revenue gains with excellent results in safety, service, and productivity.”

And while the first quarter was record-breaking, CSX is bullish in near-term future growth prospects.

Clarence Gooden, CSX executive vice president, sales and marketing, said on the call that most key indicators continue to project annual growth in 2012, which supports CSX’ expectation that the second quarter outlook is favorable for 58 percent of its volume—which includes intermodal, automotive, metals, forest products, and phosphate and fertilizer—and stable for 32 percent of its volume—which includes chemicals, emerging markets, agricultural products, food and consumer, and export and industrial coal.

Utility coal, which represents 10 percent of CSX’ volume, is the only market with an unfavorable outlook. But with a growing economy, continued truck conversion from the highway, and on-boarding of CSX’ new Maersk business, Gooden said intermodal is expected to continue to lead growth for CSX.

Revenue per unit for the first quarter increased by 4.9 percent at $1,851.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Port of Oakland has undertaken a series of measures in recent years to attract more import volume.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 8.2 percent from September 2013 to September 2014 at $102.2 billion.

NS said that the D&H lines it plans to acquire connect with the NS network at Sunbury, Pa. and Binghamton, N.Y. and give NS single-line routes from Chicago and the southeast U.S. to Albany, N.Y., which is in close proximity to NS’ Mechanicville, N.Y.-based intermodal terminal.

This follows a 1.6 cent decrease last week, which was preceded by a 5.4 gain the week before and stands as the first increase going back to the week of June 23, when the weekly average headed up 3.7 cents to $3.919 per gallon.

BNSF said that its 2015 capital expenditures will be allocated towards various areas of its business, including maintenance and expansion of the railroad to meet the expected demand for freight rail service, with 2015 representing the third straight year BNSF has invested a record annual capital expenditures investment.

Article Topics

News · Railroad · Rail Freight · Intermodal · CSX · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA