CSX’s posts record operating income, revenue
Jacksonville, Fla.-based CSX Corp. reported record operating income and revenue in the first quarter, driven by high demand for its rail and intermodal services.
In contrast, CSX’s net earnings for the first quarter 2006 were down 58 percent to $245 million, from $579 million a year ago. The company’s net earnings in the first quarter of 2005 included $425 million from the discontinued operations of its international terminals business, CSX World Terminals, which it sold to DP World for $1.15 billion in December 2004. On a continuing operations basis, CSX’s profits increased 59 percent.
Operating income jumped 39 percent to $487 million, compared to $351 million in the first quarter 2005. Revenue increased 11 percent to $2.33 billion from $2.11 billion. CSX’s fuel bill for the quarter was up 41 percent to $253 million.
“CSX continued to improve its underlying business performance in a strong demand environment,” said Michael J. Ward, CSX’s chairman and chief executive officer. “Most notably, our rail operations showed solid improvements in safety, service and efficiency.”
“We will see growth in volumes and profitability as the rail renaissance unfolds, service levels continue to improve and our capacity expansions come online,” Ward said.
