Subscribe to our free, weekly email newsletter!


Railroad shipping: CSX reports record third quarter earnings

By Jeff Berman, Group News Editor
October 19, 2011

As it has done many times in the past, Class I railroad carrier CSX led off the rail earnings season with a strong performance, reporting record-setting third quarter earnings of $506 million and $0.43 per share.

This was a 19 percent annual gain and matched Wall Street estimates for earnings per share.

Quarterly operating income at $878 million was up 6 percent, and quarterly revenue at $2.963 billion was up 11 percent.

Volume growth was again strong for CSX overall in the third quarter, with total volume at 1,619 million total units for a 1 percent gain over 2010. Automotive loadings were up 4 percent, and agricultural products were down 89 percent, and chemicals were up flat. Total merchandise was up 2 percent at 657,000 units. Coal was down 1 percent at 386,000 units, and intermodal was flat at 576,000 units.

“These [earnings] results reflect the compelling value of freight rail transportation and recoveries associated with higher fuel costs,” said Michael Ward, CSX President and CEO, on an earnings call earlier today. “The underlying fundamentals of our business continue to support our aspirations for the future. In the near-term, that means the continuation of steady volume growth and volume performance. Longer-term, the outlook for freight rail transportation remains attractive as the population grows and the need for cost-effective and environmentally-friendly transportation solutions becomes even greater.”

Although positive trends are continuing in the economy, they are occurring at a more moderate pace, said Clarence Gooden., CSX executive vice president, sales and marketing, on the call.

Gooden explained that through discussions with conversations with customers, coupled with key leading indicators, signs point to growth in most of the markets CSX serves.

“Transportation demand in the markets we serve continues to support profitable growth,” said Gooden.

Quarterly volume increases drove $20 million in annual revenue growth, with the combined effect of rate and service mix accounting for $153 million in revenue increase, reflecting yield gains across all markets.

Same stores sales pricing increased 7.1 percent and continues to outpace rail inflation, which is currently forecasted at 4.2 percent for the year. These sales represent 75 percent of CSX’ traffic base, said Gooden.

Same store sales are defined as units with the same customer, commodity, and car type and at the same origin and destination.

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

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

Article Topics

News · Intermodal · CSX · Railroad Shipping · All topics

Comments

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