CSX posts strong third quarter earnings results

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.

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, 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. 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
Efficiency improvements in Track/Trace Enhances Customer Loyalty
Consumer satisfaction with the quality of your products is clearly important, but the service you provide before and after the sale is equally important to any business, but often overlooked as benefiting the bottom line.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...