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

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 · Intermodal · CSX · Railroad Shipping · 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