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,…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
