CSX Results Mixed on Weak Coal Shipments

CSX Corp. (NYSE: CSX) reported fiscal third quarter results before markets opened this morning. For the quarter, the railroad operator posted diluted earnings per share (EPS) of $0.44 on revenues of $2.89 billion. In the same period a year ago, the company reported EPS of $0.43 on revenues of $2.96 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.43 EPS and $2.93 billion in revenues.

CSX's CEO said, "CSX continues to respond well to moderating economic conditions and challenges in our domestic coal business." Challenges indeed.

Revenues fell 2% year-over-year in the third quarter, which the company attributed to overall lower traffic volume, a change in the mix of the company's business, and lower fuel recovery. Operating income fell 3% from $878 million in the same period a year ago to $854 million.

CSX's shipments of agricultural products fell 8% year-over-year, but the big loser was coal, down 16%. Coal shipment revenue was down 17%. The biggest gainer was automotive shipments, up 17% and a revenue jump of 18%. Unfortunately for CSX, automotive traffic and revenue are only about a third the size of coal traffic and revenue.

The other gainer came in intermodal shipping, up 8% on volume and 10% on revenue. And while intermodal volume was nearly double coal volume, revenues are just half of coal revenues.

Fuel costs were slightly higher year-over-year, at $3.16 per gallon compared with $3.13 a year ago, and total diesel fuel costs fell 12%, but that was surely due to lower traffic volume.

CSX's shares are up about 3% in after-hours trading at $21.63 in a 52-week range is $19.87 to $23.71. Thomson Reuters had a consensus analyst price target of around $25.65 before today's report.

Paul Ausick

Read Full Story


DJIA 24,083.83 59.70 0.25%
NASDAQ 7,003.74 -3.62 -0.05%
S&P 500 2,639.40 4.84 0.18%
NIKKEI 225 22,319.61 104.29 0.47%
HANG SENG 30,007.68 -320.47 -1.06%
DAX 12,443.11 20.81 0.17%
USD (per EUR) 1.22 0.00 0.02%
USD (per CHF) 0.98 0.00 0.14%
JPY (per USD) 109.34 -0.02 -0.01%
GBP (per USD) 1.39 0.00 -0.14%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.