CSX Corp.'s (CSX) third-quarter profit climbed 1.8% as higher
overall volume and some pricing gains more than offset continued
weakness in the coal market.
The railroad company also projected full-year earnings per share
to be "slightly up" from last year's level, an improvement from the
prior expectation of "roughly flat" earnings. The rosy report sent
shares up 1.8% to $26.56 in after-hours trading.
While falling coal volumes have stung the railroad's results in
recent quarters, due to weak global demand and high domestic
inventories, the intermodal division has seen stronger volumes
lately.
CSX's results exceeded expectations in the latest quarter, a
report that contrasts with the warning peer Union Pacific Corp.
(UNP) gave earlier this month. Union Pacific said mild weather and
an uncertain economic environment would result in third-quarter
results that missed Wall Street's expectations.
CSX, the first major railroad to report quarterly results,
reported a third-quarter profit of $463 million, or 46 cents a
share, up from $455 million, or 44 cents a share, a year earlier.
Revenue grew 3.6% to nearly $3 billion, as total volume climbed
2.7%.
Analysts surveyed by Thomson Reuters projected a profit of 43
cents a share on $2.95 billion in revenue.
Intermodal volume, which measures the movement of freight by two
or more modes of transportation, climbed 10%. Coal volume dropped
7.4%.
Merchandise shipments were up 4.9%, as volume for chemicals,
autos and metals grew, but fell slightly for some agricultural
products.
Write to John Kell at john.kell@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires