CSXÆs EARNINGS JUMP 25%
CSX Corp. said its first quarter earnings improved 25 percent to $25 million, despite declining revenue.
Richmond, Va.-based CSX said the most recent quarter includes a non-cash, after-tax accounting change of $43 million. Results also include a $36-million pre-tax gain from a property sale.
Revenue was off 3 percent to $1.96 billion, while operating income rose 12.2 percent to $212 million. CSX cut operating expenses 4.6 percent, to $1.75 billion.
'All of our businesses performed well in a struggling economy,' said John W. Snow, chairman and chief executive officer of CSX Corp. 'Our railroad and intermodal operations, which are the core of CSX today, continue to produce higher year-over-year earnings.'
First-quarter operating earnings for the rail and intermodal business were $194 million compared to $182 million a year ago. Revenues were down 3 percent to $1.75 billion and carloads were off 4 percent. Volumes were off 4 to 5 percent for most merchandise groups, though agricultural volumes were off 8 percent. Automotive volumes rose 2 percent. Coal, coke and iron ore were off 11 percent. Intermodal volumes were flat, as domestic shipments offset declines in international container business.
CSX Transportation saw operating income of $177 million, up 6.6 percent, on revenue of $1.49 billion, down 3.0 percent.
'The railroad had strong results while operating in a difficult environment,' said Michael J. Ward, president of CSX Transportation. 'Far less coal was carried than a year ago because of the mild winter and merchandise shipments were down. But margins were up as price increases were achieved in certain markets, fuel expenses were lower, and we realized the cost benefits of a smooth-running railroad.
For CSX Intermodal, Operating income improved 6.3 percent to $17 million, while revenues slipped 3.3 percent to $262 million.
Combined operating earnings from CSX's marine services business jumped 33 percent to $12 million.
CSX Lines, the domestic container line, saw operating income of $1 million, compared to an operating loss of $3 million in the year-earlier period. Revenue was flat at $161 million. Market share gains in Hawaii/Guam and Puerto Rico were offset by overall market declines due to the Sept. 11 tragedy on the tourism-reliant Hawaii/Guam trade. Operating expenses were $4 million less due to reduced fuel costs.
CSX World Terminals saw operating income slip $1 million to $11 million, on revenue of $61 million, off 10.2 percent, primarily due to weakness in the Latin America sector, and the slow recovery of the Hong Kong economy.