CSX railroad's profit jumped 25% in the first quarter as the railroad hauled 3% more shipments and cut its expenses.
The Jacksonville, Florida-based railroad said Thursday that it earned $807 million, or $0.43 per share, as it continued to improve efficiency. That's up from $646 million, or $0.34 per share, a year ago.
CSX easily topped the expectations of the analysts surveyed by FactSet Research who predicted earnings per share of 39 cents.
The railroad said it cut expenses by 6% to $2.2 billion in the quarter as CEO Steve Angel, who took over last fall, continued to improve operations. At the same time, the railroad's revenue grew 2% to $3.48 billion.
“CSX performed well this quarter by providing reliable and efficient service to our customers through changing market conditions, while improving our expense profile,” Angel said.
The railroad’s executives said many of its efforts to cut costs across the board started to pay off even quicker than expected, and the bottom line was helped by a $44 million gain on real estate sales in the quarter.
The railroad, which is one of the nation's biggest, said it now expects revenue growth in the mid single digits this year. Previously, CSX predicted growth in the low single digits.
CSX will soon be able to haul metal shipping containers stacked two high across its network after completing a major tunnel renovation project in Baltimore. But it will take time for traffic to grow as the railroad signs up new customers once the line is fully open.
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