×

CSX profit slips in 4Q but railroad hauls 4% more freight

OMAHA, Neb. (AP) — CSX railroad reported relatively flat fourth-quarter earnings even though it hauled 4% more freight as the economy continued to rebound from last year’s widespread virus-related shutdowns.

The Jacksonville, Florida-based railroad said Thursday it earned $760 million, or 99 cents per share, during the quarter. That was down slightly from $771 million, or 99 cents per share, a year earlier, but this quarter’s results were hurt by a $48 million charge related to the early retirement of debt. Without that, CSX would have reported earnings per share of $1.04.

The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1 per share.

The freight railroad posted revenue of $2.83 billion in the period, also beating Street forecasts. Four analysts surveyed by Zacks expected $2.75 billion.

Strong demand for deliveries of shipping containers — known as intermodal shipments — which were up 11%, helped offset weakness in nearly every other category of freight in the quarter. Volume was positive overall for the first time since before the pandemic began. In last year’s second quarter, volume fell 20% when many businesses were shut down as officials sought to limit the spread of COVID-19.

The railroad said it cut its expenses 7% to $1.61 billion as fuel and labor costs both decreased.

CSX Corp. shares have increased 1% since the beginning of the year, while the S&P 500 index has climbed almost 3%. In the final minutes of trading on Thursday, shares hit $91.62, an increase of 22% in the last 12 months.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *

Starting at $4.73/week.

Subscribe Today