CSX posts record first quarter earnings

By Jeff Berman, Group News Editor
April 18, 2012 - LM Editorial

Class I railroad carrier CSX last night reported record first quarter earnings of $449 million and $0.43 per share.

The earnings per share performance exceeded Wall Street expectations of $0.38 per share and was up 23 percent annually.

Quarterly operating income was up 11 percent at $856 million and revenue was up 6 percent annually at $2.96 billion. The quarterly operating ratio for CSX of 71.1 percent was 140 basis points better than the first quarter of 2012.

CSX said first quarter volume was up 1 percent annually, with increased shipments in merchandise and intermodal more than offsetting declines in its coal business.

“Despite significant weakness in utility coal, we continue to see broad-based revenue growth across nearly all of our markets,” said Michael Ward, CSX President and CEO, on an earnings call. “Our team supported the revenue gains with excellent results in safety, service, and productivity.”

And while the first quarter was record-breaking, CSX is bullish in near-term future growth prospects.

Clarence Gooden, CSX executive vice president, sales and marketing, said on the call that most key indicators continue to project annual growth in 2012, which supports CSX’ expectation that the second quarter outlook is favorable for 58 percent of its volume—which includes intermodal, automotive, metals, forest products, and phosphate and fertilizer—and stable for 32 percent of its volume—which includes chemicals, emerging markets, agricultural products, food and consumer, and export and industrial coal.

Utility coal, which represents 10 percent of CSX’ volume, is the only market with an unfavorable outlook. But with a growing economy, continued truck conversion from the highway, and on-boarding of CSX’ new Maersk business, Gooden said intermodal is expected to continue to lead growth for CSX.

Revenue per unit for the first quarter increased by 4.9 percent at $1,851.



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

Spot market freight volumes for the month of August remained elevated compared to seasonal norms, according to data issued this week Portland, Oregon-based freight marketplace platform and information provider DAT.

Factors such as rising freight rates, shrinking capacity, an increased desire for global supply chain visibility, have all worked together to drive the need for instituting a culture of continuous improvement in logistics operations and transportation management systems (TMS). To meet today's complex logistics challenges, managers are stepping into a more streamlined, automated approach to transportation management in order to function at optimal levels both domestically and internationally. Read the latest special report.

The Atlanta-based company said that it plans to hire between 90,000-to-95,000 seasonal employees, up from about 85,000 last year, to support “the anticipated holiday surge” for package deliveries commencing in October and running through January.

The Memphis-based company reported today that quarterly net income of $606 million was up 24 percent annually, and revenue, at $11.7 billion, was up 6 percent. Operating income at $987 million was up 24 percent.

The World Shipping Council (WSC) released an update to its survey and estimate of containers lost at sea.

Article Topics

News · Railroad · Rail Freight · Intermodal · CSX · All topics

About the Author

Jeff Berman, 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.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA