LABOR DISPUTE CUTS CSX LINESÆ 4TH-QUARTER PROFIT
CSX Lines, the U.S. Jones Act ocean carrier due to be acquired by the Carlyle investment group, suffered a $5-million fall in operating income in the fourth quarter, to $6 million, caused by the cost of the recent labor dispute at U.S. West Coast ports.
The latest operating result compares with an operating income of $11 million in the fourth quarter of 2001.
“Fourth quarter 2002 earnings were affected by approximately $7 million as a result of the 10-day labor disruptions at West Coast ports,” said CSX Corp., the railroad group. CSX said in December it had reached an agreement to sell CSX Lines to Carlyle. It expects to close the transaction during the first quarter.
CSX Lines' fourth-quarter revenue was $193 million, up from $171 million in the corresponding quarter in 2001.
For the year, CSX Lines earned an operating income of $38 million, up from $32 million in 2001. Revenue increased to $758 million in 2002, from $681 million in the previous year.