CSX (NASDAQ: CSX) the third-largest U.S. railroad operator, posted a slight increase in quarterly net profit on Tuesday, driven by increased rates it charges its customers to haul freight.
The Jacksonville, Florida-based railroad posted third-quarter net income of $459 million, or 51 cents per share, up from $455 million, or 48 cents per share a year earlier.
Said CEO Hunter Harrison, “The company’s results for the third quarter reflect the resiliency of Precision Scheduled Railroading, even during times of transition.
"With that transition largely behind us, we are now intensely focused on driving superior service for our customers and lasting value for our shareholders.”
Revenue for the third quarter increased 1% when compared to the previous year, supported by core pricing gains and offset by the impact of unfavorable mix. Expenses declined $2 million year over year with efficiency gains of $95 million more than offsetting the cost of inflation and fuel costs that were 19% higher on a per gallon basis when compared to the same quarter last year.
Total volume for the quarter was stable, while operating income improved 4% to $876 million and the operating ratio improved 90 basis points to 68.1%. Given the significant progress made to date, the company has completed the $1.5-billion share repurchase program that was announced last April and upsized in July, reflecting management’s confidence in the company’s future.
Shares in the company acquired some steam, gaining $1.09, or 2.1%, Tuesday afternoon to $53.93, within a 52-week trading range of $30.01 to $55.48.
