REAL ESTATE GAINS BOLSTER CSXÆS THIRD-QUARTER RESULTS
CSX Corp. on Thursday said third-quarter net income improved 27 percent to $127 million, as real estate gains and decreased interest expenses more than offset slumping rail and intermodal results.
Operating income for CSX Transportation, the company's rail unit, and CSX Intermodal was $227 million, down from $237 million for the third quarter of 2001.
'The rail group's performance in the third quarter marked a departure from the consistent year-to-year gains we have been seeing the last two years,' said John W. Snow, chairman and chief executive officer of CSX Corp. 'We are confident that the problems we saw in the third quarter are now well behind us and look forward to delivering much stronger fourth-quarter results.'
CSX Corp.'s revenues were $2.06 billion, up from $2.02 billion for the year-earlier quarter. Rail and intermodal revenues were flat at $1.79 billion.
The slump for CSX's surface transportation units came largely from weakened coal demand and a $15-million increase in operating expenses.
CSX Transportation reported operating income of $188 million, down from $200 million, on revenue of $1.47 million, down from $1.50 million in the third quarter of 2001.
CSXI saw operating income improve to $274 million from $249 million, on revenue of $313 million, up $17 million from the year-earlier quarter.
Coal volumes declined while revenue fell 8 percent to $382 million. However, these numbers were offset by increases in merchandise, automotive and intermodal. Merchandise loads increased 2 percent and revenues increased 2 percent to $871 million. Automotive volumes rose 4 percent and revenues increased 6 percent to $195 million.
Intermodal loads and revenue improved 9 percent, with revenue topping $313 million. International volumes were boosted by increased imports and pre-shipping in anticipation of West coast labor disruption. Eastbound domestic container demand continued to be strong, and the market was enhanced by CSX's increased 53-foot container fleet, CSX said.
CSX Lines, the company's domestic container shipping unit, saw operating income rise $5 million to $22 million in the third quarter. Revenue was up by $34 million to $215 million due to strong market share gains in the Hawaii and Puerto Rico trade. Expenses also increased, by $29 million, a result of the increased volumes carried and the introduction of another vessel into the Puerto Rico trade.
CSX's terminal operating unit saw operating income slip to $18 million, from $20 million, while revenue increased $6 million to $64 million.