By John Kell
CSX Corp.'s fourth-quarter profit fell 3.8% as expenses climbed,
masking a jump in volume boosted by strong shipments of chemicals,
autos and agricultural products.
Shares slid 3.4% to $28.25 in after-hours trading, as profit in
the latest period was under Wall Street's expectations.
While falling coal volumes have stung the railroad company's
results in recent quarters, owing to weak global demand and high
domestic inventories, its intermodal division has posted stronger
volumes lately.
Broadly, railroads are coming off a record year for intermodal
growth, according to the Association of American Railroads,
surpassing a prior high mark achieved in 2006. Observers see more
volume growth in 2014 as the economy should continue to strengthen,
though some are cautious about pricing.
CSX Chairman and Chief Executive Michael Ward said the latest
results were supported by "the strength of an expanding economy,"
boosting overall volume despite another sharp decline in coal.
CSX, the first major railroad to report quarterly results,
posted a profit of $426 million, or 42 cents a share, down from
$443 million, or 43 cents, a year earlier. Prior-year results
included six cents in real-estate gains.
Revenue jumped 4.7% to $3.03 billion, as total volume increased
6.1%.
Analysts surveyed by Thomson Reuters expected a per-share profit
of 43 cents on $3.01 billion in revenue.
Intermodal volume, which measures the movement of freight by two
or more modes of transportation, grew 11%. Coal volume fell 5%.
Merchandise shipments grew 7%, as volume for chemicals, autos,
metals and agricultural products increased, offsetting more modest
declines for minerals, phosphates and fertilizers and food and
consumer goods.
Write to John Kell at john.kell@wsj.com
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