CSX reports a 12-percent increase in profits

CSX says intermodal volumes in the thrid quarter were 5-percent higher.    CSX said it had record third quarter profit of $509 million up 12 percent from $455 million in the same period last year. Revenue was $3.22 billion, up 8 percent from the $2.99 billion recorded in the third quarter of last year.
   The company said that it benefited from a 7-percent increase in volume and a 1-percent increase in revenue per unit.
   Intermodal volumes were up 5 percent through growth in intermodal cargo, though the company said revenue per unit for intermodal was relatively flat.
    “Domestic volume increased as a result of growth with existing customers and continued success with highway-to-rail conversions. International volume also increased due to growth with customers in global container shipments moving to inland destinations,” the company said.
   CSX said it moved 7-percent more coal in the third quarter of this year when compared to the same period in 2013, but Michael Ward, the chief executive officer noted that “over the past few years, CSX has overcome the challenge of an energy transition in America, absorbing the loss of nearly $1 billion in coal revenue and leveraging new opportunities to sustain earnings growth.
   In an earnings call, CSX officials told analysts it would not address questions about “rumors or market speculation.” Over the weekend, there were reports that the railroad had been approached by Canadian Pacific about a possible merger. But the company did make some general comments about what the effect of consolidation among large Class I railroads, with Ward saying that he did not believe there would be a step up in efficiency if railroads merged. Instead, he said, “You might actually see a step back. As you know, in past mergers, there have been severe disruptions after one of those transactions. All the railroads are increasing their capacities similar to what we are doing. I think that will produce the capacity to move America’s freight.”
   He also noted that the Surface Transportation Board is “very concerned about the service levels” in the railroad industry because of a surge in volume. “I might speculate they would be very cautious about this becasue in the past they have created disruptions and the industry is somewhat slowed down by the tremendous  growth in volumes,” he added