CSX: Worst of recession ôlikely behind usö
CSX Corp. said it had third quarter net profit of $293 million, 23 percent less than the $382 million earned in the same 2008 period.
Revenue was $2.4 billion for the quarter ending Sept. 25, down 23 percent from the same period the prior year. The Jacksonville, Fla.-based railroad said this was due to a 15 percent decline in volume and lower fuel surcharge recovery.
“Core pricing remained strong and consistent with prior quarters, reflecting high service levels and the overall value of rail transportation. While volumes declined across the business, the rate of decline continued to slow in nearly all markets compared to the second quarter,” the company said.
That led Michael J. Ward, chairman, president and chief executive officer, to comment that 'the third quarter reinforces our view that the worst of the recession is likely behind us. At the same time, our coal business will be impacted by weak demand well into 2010.'
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The company said total intermodal volume was down 10 percent in the quarter while revenue was down 24 percent to $303 million. International intermodal volume was down 22 percent, while revenue fell 33 percent to $92 million. Domestic intermodal volume improved 2 percent while revenue decreased 19 percent to $207 million.
CSX said generally it had “another quarter of significant year-over-year volume and revenue declines caused by the broad-based weakness in the economy. The greatest volume declines occurred in coal, automotive, construction and consumer-related markets. Lower fuel recovery associated with the sharp decline in fuel prices more than offset the Company's ongoing yield management initiatives.”
But it added, “compared to the second quarter, the rate of volume decline moderated during third quarter 2009.”