Second-quarter net profits for CSX (NASDAQ: CSX) slipped 43% amid a pandemic-induced 26% drop in revenue.
Net income totaled $499 million, or $0.65 per diluted share, in the second quarter of 2020 compared with $870 million, or $1.08 per diluted share, in the second quarter of 2019.
Second-quarter revenue fell 26% to $2.26 billion amid lower economic activity driven by the COVID-19 pandemic, CSX said. Volumes fell 20% to 1.26 million units, while revenue per unit slipped 7% to $1,794.
Meanwhile, expenses in the second quarter fell by 19% to $1.43 billion amid volume-related reductions and continued efficiency gains.
Operating income slipped 37% to $828 million. The railroad’s operating ratio was 63.3%, compared with 57.4% a year ago. Operating ratio, a metric that some investors use to gauge the financial health of a company, is a company’s operating expenses as a percentage of revenue. A lower operating ratio implies improved financial health.
Service metrics were mixed. Train velocity rose 6% to 21.2 miles per hour, while terminal dwell inched 2% higher to 8.9 hours.
“I want to extend my gratitude to all of the CSX employees who kept the railroad running well during the most disruptive operating period I have seen in my career,” said CSX President and CEO Jim Foote. “Their tireless efforts reflect our commitment to being the best run railroad in North America and ensure CSX will emerge from this unprecedented period an even stronger company than before.”
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