The sale of property rights of CSX-owned line segments in Virginia more than doubled CSX’s net profits for the second quarter of 2021 compared with a year ago.
The eastern U.S. railroad posted net earnings of $1.17 billion, or 52 cents per share, in the second quarter of 2021, compared with $499 million, or 22 cents per share, in the second quarter of 2020.
During the second quarter, CSX (NASDAQ: CSX) sold the property rights of CSX-owned line segments to the commonwealth of Virginia for passenger rail operations. The sale “favorably impacted” operating income by $349 millon. It also impacted operating ratio by 11.7 percentage points, resulting in an OR of 43.4%, compared with 63.3% year-over-year.
Second-quarter revenue grew 33% to $2.99 billion, while expenses fell 9% to $1.3 billion. Operating income was $1.69 billion, a 104% increase year-over-year amid the line segment sale in Virginia. Revenue also grew within CSX’s various segments.
“I want to thank all the CSX railroaders for their dedicated and unwavering focus on our customers as the economy has rebounded,” CSX President and CEO Jim Foote said in a release. “We are committed to providing customers a high quality service product, and will continue taking all necessary steps to meet their needs.”
Subscribe to FreightWaves’ e-newsletters and get the latest insights on freight right in your inbox.
Click here for more FreightWaves articles by Joanna Marsh.