CSX reports 20% drop in earnings
CSX Corp. reported second quarter net income of $308 million, 20 percent lower than the $385 million earned in the same period last year.
Results were boosted $25 million from the sale of its resort hotel, The Greenbrier in May.
Revenue in the period ending June 26 was $2.2 billion down 25 percent from $2.9 billion in the same 2008 period. The company said this was primarily due to a 21 percent decline in volume and lower fuel surcharge recovery.
Volumes continued to decline across the board, although the rate of decline in the coal market accelerated in the second quarter.
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“While the economy continues to significantly impact our business, there are some signs that we may be seeing the bottom in many markets,” said Michael Ward, president, chairman and chief executive officer. “Even in this difficult business environment, we are still strengthening our operations, optimizing our resources and making the right investments to prepare our network for the future.”
Intermodal volumes were off 14 percent in the quarter when compared to the same 2008 period, with a 30 percent decline from international operations partly offset by a two percent gain in domestic intermodal traffic.
As a whole, intermodal revenues were down 24 percent with revenue per intermodal unit off 12 percent.
Total volume on the railroad was off 21 percent. Pricing per unit was off 5 percent per unit for the railroad as a whole.
Detailed results are available here.