RAIL PROFITS FALL, TERMINAL PROFITS RISE AT CSX IN 1ST QUARTER
Jacksonville, Fla.-headquartered CSX Corp. saw operating income from its main rail and intermodal business fall to $169 million in the first quarter, from $194 million a year earlier, but international terminals contributed an increased operating income.
The terminals arm, CSX World Terminals, made an operating income of $15 million in the first quarter, as compared to $11 million in the same quarter of 2002.
Total group operating income fell 17 percent, to $177 million in the latest quarter, from $212 million a year earlier. CSX said that it incurred higher fuel expenses in the first quarter, and was affected negatively by the severe winter weather.
Despite the lower operating income, CSX’s net income rose to $99 million, from $25 million, thanks to favorable cumulative effects of accounting charges.
Group revenue rose marginally, to $2.02 billion, from $1.96 billion. Revenue from rail and intermodal activities increased to $1.83 billion, from $1.75 billion, but revenue from terminals fell to $56 million, from $58 million.
CSX reduced its terminal operating expenses by $6 million, to $41 million in the first quarter, more than compensating for the $2-million decrease in revenue.
CSX said that the lower terminal revenue was primarily the result of one of its Hong Kong terminal’s carrier customers stopping its transpacific service.
In February, CSX sold its U.S. Jones Act carrier CSX Lines to a new venture formed by the Carlyle Group for about $300 million, including $60 million of securities. CSX will record a deferred gain on the sale of about $127 million over a 12-year period. The group said that newly-renamed Horizon Lines has subleased equipment from CSX, including ships.
