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

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

Article Topics

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


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

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA