CSXÆs 1ST-QUARTER EARNINGS DOWN 31% DESPITE BOOST IN COAL BUSINESS
CSX Corp. said Monday that first-quarter net earnings dipped 31.0 percent to $20 million, despite a 14-percent increase in core railroad and intermodal operating income.
The Richmond, Va.-based parent of CSX Transportation, reported first-quarter operating income of $189 million, down from $174 million a year ago, on revenue of $2.03 billion in both years.
However, the improvement was offset by $31 million in “other expenses,” which primarily related to write-downs of certain non-rail assets. That total compared to $5 million in “other expenses” in the first quarter of 2000.
John W. Snow, chairman and chief executive officer, said CSXT's management has been working to make the railroad more efficient while meeting customer service expectations.
“With better service, we have been able to raise rates selectively and bring new products to our markets, despite the slowdown in demand,' he said. 'We are taking advantage of the expanded network benefits of the Conrail merger and carrying more freight that formerly moved on the highways.”
Snow said a bright spot for CSXT was the increase in demand for coal, which has offset sagging volumes in automotive, metals and intermodal markets.
“Utility demand is exceptionally strong and should remain so throughout 2001,” he said. “We are encouraged by signs that policymakers and energy planners are considering increased use of coal to help address the nation's energy problems.”
Combined operating income for CSXT and CSX Intermodal was $182 million, up from $160 million last year, on revenue of $1.8 billion in both years. Revenues and earnings for CSX's terminal (CSX Terminals) and domestic carrier shipping business (CSX Lines) were down from the year-earlier quarter.
