CSX Sees 8% Profit Growth Despite Southeast Storm Damage
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CSX’s 3% increase in third-quarter shipments helped drive an 8% profit gain, but the railroad expects only modest volume growth for the rest of the year as the Southeast rebuilds after two major hurricanes.
The railroad reported Oct. 16 that it earned $894 million, or 46 cents per share, up from $828 million, or 41 cents per share, a year ago. The results fell short of the 48 cents per share forecast by analysts surveyed by FactSet Research.
The Jacksonville, Fla.-based railroad is recovering from Hurricanes Helene and Milton that battered its extensive network in the Southeast. Some trains had to be rerouted across the region as tracks are cleared and repaired.
CSX CEO Joe Hinrichs said the railroad has remained “flexible and resilient” despite the storm damage and “we remain ready to meet our customers’ needs.”
In addition to the disruption from the hurricanes, CSX said demand for metals and automotive shipments is weaker than expected.
For the quarter ending Sept. 30, the railroad reported a 1% increase in revenue to $3.62 billion. Analysts had expected CSX to report revenue of $3.68 billion.
The railroad has been working for years to reduce expenses by running fewer, longer trains, allowing it to operate with fewer locomotives and train crews. This effort to streamline operations continued this quarter, with expenses declining 2% to $2.27 billion.
CSX is one of the nation’s largest railroads serving the eastern United States.
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