By Tess Stynes
CSX Corp. said its fourth-quarter earnings rose 15% as the
freight railroad operator continued to benefit from strong freight
demand.
The Jacksonville, Fla., company is the first big U.S. railroad
to report results for the latest quarter. Analysts have been
expecting nearly all freight-rail companies to post strong results
despite a steep decline in prices for crude oil--one of the fasting
growing parts of the rail business.
Booming shale production has led to a surge in crude shipped by
rail, which has increased demand but also snarled railroad traffic
and raised questions about how to improve safety.
Looking ahead, along with new pipelines coming online,
crude-rail shipments may face increased competition from truckers
as falling fuel prices diminish the price advantage of trains over
trucks.
Overall, CSX reported a profit of $491 million, or 49 cents a
share, up from $426 million, or 42 cents a share, a year earlier.
Revenue increased 5.3% to $3.19 billion.
Analysts polled by Thomson Reuters expected per-share profit of
49 cents and revenue of $3.18 billion.
Total shipment volume grew 6.1% and average revenue per unit
improved by 5.35.
Coal volume, increased 11% led by 22% growth in shipments of
coal used by domestic utilities replenishing stockpiles and market
gain.
Intermodal shipments, which involve the movement of freight by
several modes of transportation, rose 5% led by growth in domestic
volume.
Total merchandise volume, which includes agricultural,
industrial and housing and construction shipments, increased
5.2%.
CSX affirmed its 2015 financial projections for double-digit
earnings growth and stronger margins.
Union Pacific Corp., Kansas City Southern and Norfolk Southern
Corp. plan to release their fourth-quarter results in coming
weeks.
Write to Tess Stynes at tess.stynes@wsj.com
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