Subscribe to our free, weekly email newsletter!


CSX posts strong third quarter earnings results

By Jeff Berman, Group News Editor
October 16, 2013

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 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

less than one percent of all U.S. businesses export, and of those that do, the majority interacts only with NAFTA trading partners Mexico and Canada.

Seasonally-adjusted (SA) for-hire truck tonnage in April at 134.8 (2000=100) fell 2.1 percent from March and on the heels of a 4.4 percent February to March decrease.

The current price at $2.357 per gallon saw a 6-cent increase on the way to its highest weekly price of 2016 based on EIA data. And it is also the highest price since the week of December 14, when it was at $2.338 per gallon.

As e-commerce growth and demand goes, so goes the increased need for e-commerce fulfillment centers and distribution centers, according to the debut issue of the Global Prime Logistics Rents report recently issued by global commercial real estate firm CBRE Group Inc.

In this new world of Omni-channel—profitable and efficient anytime, anywhere fulfillment is the goal.

Article Topics

News · Intermodal · CSX · Railroad Shipping · All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA