CSX posts strong third quarter earnings results

By ·

Class I railroad carrier CSX yesterday reported third quarter net earnings of $463 million and $0.46 per share, which was up 1.7 percent annually and beat Wall Street estimates of $0.43 per share.

Quarterly operating income at $854 was flat annually and revenue at $3 billion was up roughly 3 percent. CSX said that the strong quarterly revenue was due largely to higher volume and pricing gains in merchandise and intermodal that offset ongoing coal revenue declines. And it added that its net earnings was supported by strong operating results and higher revenues that included benefits from customer contract settlements

Total second quarter volume for the Jacksonville, Fla.-based railroad carrier was roughly 1.643 million total units, representing a 3 percent annual gain. Intermodal was up 6 percent at 657,000 units, and chemical and automotive loadings at 132,000 and 101,000 were up 12 and 1 percent, respectively. Coal was down 7 percent at 310,000. Total merchandise was up 5 percent at 687,000 units.

“As the energy markets continue to evolve, our business mix is increasingly favoring merchandise and intermodal movements,” said CSX President, Chairman, and CEO Michael Ward on an earnings call today. “The team is effectively managing this change by capitalizing on the modest growth in the economy and by focusing relentlessly on safety, service improvement, and asset efficiency. These are important drivers of our foundation for long term profitable growth.”

Quarterly revenue per shipment for CSX was up 1 percent to $1,825, with the impact of core pricing gains and liquidated damages partially offset by the unfavorable mix impact related to growth in intermodal versus the decline in coal, according to Clarence Gooden, CSX EVP, sales and marketing.

Gooden added that core pricing on a same-store sales basis remained solid across nearly all markets, noting that same-store sales are defined as shipments with the same customer, commodity, and car type, and the same margin and destination. These shipments represented 78 percent of CSX’s traffic base for the quarter, he said.

“All-in core pricing was 1 percent in the quarter, down from 1.5 percent in the same quarter last year, reflecting continued rate pressure in the export coal market and more modest increases in domestic coal pricing,” said Gooden.


About the Author

Jeff Berman
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. Contact Jeff Berman

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!

Article Topics

CSX · Intermodal · Railroad Shipping · All Topics
Latest Whitepaper
Reduce Order Processing Costs by 80%
Sales order automation software will seamlessly transform inbound emailed and printed purchase orders into electronic sales orders that can be automatically processed into your ERP system with 100% accuracy.
Download Today!
From the June 2016 Issue
In the wildly unstable ocean cargo carrier arena, three major consortia are fighting for market share, with some players simply hanging on for survival. Meanwhile, shippers may expect deployment shifts as a consequence of the Panama Canal expansion.
WMS Update: What do we need to run a WMS?
Supply Chain Software Convergence: Synchronization Realized
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Optimizing Global Transportation: How NVOCCs Can Use Technology to Operate More Profitably
Global transportation isn't getting any easier to manage, especially for non-vessel operating common carriers (NVOCCs). Faced with uncertainties like surcharges—but needing to remain competitive when bidding against other providers—NVOCCs need the right mix of historical data, data intelligence, and technology support to make quick and effective decisions. During this webcast you'll learn how Bolloré Transport & Logistics was able to streamline its global logistics and automate contract management.
Register Today!
EDITORS' PICKS
Details Key to Cross-border Ease
Ever-changing regulations are making it risky for U.S. companies engaged in cross-border trade...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo