The railway increased net earnings 4.5 percent compared to Q2 2014 as quarterly operating income topped $1 billion for the first time in company history.
CSX Corporation increased net earnings 4.5 percent to $553 million – equivalent to $0.56 per share – in the second quarter of 2015 compared with the second quarter of 2014.
The record results came despite revenues at the Jacksonville, Fla.-based railway falling 6 percent to $3.06 billion compared with Q2 2014, according to the company’s most recent financial statements. CSX attributed the decrease primarily to pricing gains being offset by the impact of lower fuel recovery and a 1 percent decline in rail volumes.
Thanks to a 9 percent reduction in operating expenses, from $2.25 billion to $2.05 billion, due to continued low fuel prices and savings from efficiency initiatives, however, quarterly operating income at CSX topped $1 billion for the first time in company history.
Looking forward to the rest of 2015, CSX said it expects to deliver mid-to-high single digit earnings per share growth for 2015.
“With low natural gas prices and high inventory levels continuing to reduce utility coal demand, CSX now expects domestic coal volume to decline by approximately 10 percent for 2015 and the outlook for export coal volume remains approximately 30 million tons for the year,” added CSX. “The company also expects meaningful margin expansion as it progresses towards a full-year operating ratio in the mid-60s longer term.”
“While we saw challenges in a number of markets, CSX employees delivered an even safer, more reliable and more differentiated service product this quarter,” Michael J. Ward, chairman and chief executive officer, said of the results. “We expect the momentum in network performance we saw in the second quarter to accelerate, continuing to create value for our customers and shareholders.”
CSX reports record financial results in Q2 2015
