Saturday, April 19th-0.1°C
21450
20775

CSX 4Q profit down 5 per cent but railroad hauled more freight as economy improved

OMAHA, Neb. - CSX railroad's fourth-quarter profit declined 5 per cent as coal demand remained weak, but the volumes it hauled grew as the economy improved.

The railroad expects the economy to continue growing and is ready to take advantage of that growth, said CEO Michael Ward in a statement Wednesday.

The Jacksonville, Fla.-based railroad earned $426 million, or 42 cents per share, in the last three months of 2013. That's down from $449 million net income, or 44 cents per share. The 2012 quarter included a one-time real estate gain of $57 million, or 6 cents per share.

The company's shares declined 2.7 per cent to $28.44 in after-hours trading. CSX's results fell just short of the 43 cents earnings per share that analysts surveyed by FactSet expected.

CSX revenue grew 5 per cent to $3.03 billion, roughly what Wall Street predicted.

Edward Jones analyst Logan Purk said it is worrisome that the railroad's revenue per carload slipped 1 per cent. That suggests CSX might be having trouble increasing prices for shipments. But Purk said there are still several long-term positives for the railroad, such as the growing crude oil and intermodal businesses.

Intermodal shipping involves the metal containers that are also carried on ships and trucks.

"The clear positive is the volume number," Purk said.

The railroad hauled 6 per cent more carloads of freight during the quarter, as growth in other types of goods offset the 5 per cent drop in coal shipments.

Chemical shipments, which include the fast-growing crude oil segment, increased 18 per cent, agricultural shipments surged 16 per cent and carloads of intermodal containers grew 11 per cent.

Railroad results are considered indicators of the health of the economy. The number of cars, chemicals, fuel, crops, lumber and containers of imported goods railroads carry provides an indication of the health of those industries.

CSX Corp. operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces.

Through all of 2013, CSX reported $1.86 billion net income, or $1.83 per share, on $12 billion revenue. That was roughly in line with last year's results.

CSX is the first major freight railroad to release quarterly earnings. Norfolk Southern Corp. will release its fourth-quarter results next Wednesday, with Union Pacific Corp. the day after.

___

Follow Josh Funk online at www.twitter.com/funkwrite

___

Online:

CSX Corp.: www.csx.com

The Canadian Press


Read more Business News

20970


Recent Trending




Today's Market
S&P TSX14500.39+53.87
S&P CDNX998.770.80
DJIA16408.54-16.31
Nasdaq4095.516+9.291
S&P 5001864.85+2.54
CDN Dollar0.90720.00
Gold1293.80-9.2999
Oil104.59+0.83
Lumber326.10-2.70
Natural Gas4.735+0.205

 
Okanagan Companies
Pacific Safety0.115+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.29+0.07
Cantex0.055+0.01
Anavex Life Sciences0.3750.00
Metalex Ventures0.08+0.005
Russel Metals30.66+0.11
Copper Mountain Mining2.35-0.07
Colorado Resources0.255-0.01
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02

 



20820

FEATURED Property
146433610 Acre property with TWO TITLES (split into two 5 acre lots)
$449,000
more details
image2image2
Click here to feature your property
Please wait... loading


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...

_



21637

21368


Member of BC Press Council


21188