CSX PROFIT DROPS 43 PERCENT

CSX PROFIT DROPS 43 PERCENT    CSX Corp., based in Richmond, Va., said second-quarter earnings fell 43 percent, reflecting higher costs from CSX Transportation’s absorption of Conrail, Inc.
   Net earnings totaled $55 million, or 26 cents a share, down from $114 million, or 53 cents a share, for the second quarter of 1999.
   John W. Snow, CSX Corp’s chairman, president and CEO, told Wall Street analysts that the service on CSXT, the nation’s third-largest railroad, had started to improve in May and June.
   “Velocity is up, cars-on-line are coming down, and terminals are more efficient,” Snow said. “The improvements in operation are a prelude to improvements in financial performance that should be apparent in the third and fourth quarter,” he explained.
   Fuel costs in the second quarter were $133 million, compared to $64 million a year earlier.
   For CSX’s rail and intermodal businesses, second-quarter operating income totaled $158 million, compared to $224 million for the second quarter of 1999. Revenues were $1.84 billion, compared with $1.54 billion in 1999.
   CSX Corp’s marine units had operating income of $22 million for the second quarter. The company’s contract logistics division had operating income totaling $11 million, compared to $9 million a year ago.