CSX First-Quarter Earnings Tumble 19%, Hurt by Sharp Drop in Coal Market
CSX Corp. kicked off the first-quarter earnings reporting season on a down note as net income fell 19% to $356 million, or 37 cents per share and revenue dipped 14% to $2.62 billion, including a drop of 37% in coal traffic.
The Jacksonville, Florida-based company, the third largest U.S. railroad, posted earnings of $442 million, or 45 cents in last year’s first quarter, when revenue totaled $3.03 billion.
Intermodal traffic was a bright spot, rising 4% in a period when total shipments fell 5%. Automotive traffic was the largest gainer at 12%. Coal shipments declined 31%.
“As we managed through the impact of the continued coal decline and other market forces during the first quarter, CSX took aggressive actions to improve efficiency, reduce costs and streamline resources across the network to further reshape the company,” CEO Michael Ward said in a statement.
The results matched the average estimate of 37 cents per share in a Bloomberg News analyst survey.
CSX said revenue was hurt by customers who didn’t meet operating commitments, and costs were lowered by $197 million.
Ward also said CSX expects full-year earnings on a per-share basis to trail last year’s $2.00, without giving a specific amount.
