CSX’s fourth-quarter profit dips on lower revenue

CSX’s (NASDAQ: CSX) net profit for the fourth quarter of 2019 slipped 8.5% amid declining revenues due to lower volumes and coal market headwinds, the company said Thursday.

Net earnings for the fourth quarter totaled $771 million, or 99 cents a share, compared with $843 million, or $1.01 a share for the fourth quarter of 2018. Fourth-quarter revenue slipped 8% to $2.89 billion.

Despite the drop in revenues, fourth-quarter costs were down amid continued efficiency gains and volume-related savings, CSX said. Expenses for the fourth quarter of 2019 fell 9% to $1.73 billion. Meanwhile, fourth-quarter operating income slipped 8% to $1.15 billion.

The Eastern railroad also said it reached a fourth-quarter record operating ratio of 60%, compared with 60.3% in the fourth quarter of 2018. CSX’s full-year operating ratio was a record 58.4%, compared with 60.3% for 2018. Operating ratio can be an indicator of a company’s profitability.

“The railroad has never run better and we are delivering great service to our customers,” said James M. Foote, CSX’s president and CEO. “What is really amazing is how our employees stepped up to produce efficiencies during tough economic conditions.”

Rail	2019 Value	2018 Value	Y/Y Gross Change	Y/Y % Change
Freight revenue	$2,885,000,000.0	$3,143,000,000.0	($258,000,000.0)	-8.2%
Carloads	857,000	916,000	-59,000	-6.4%
Revenue per carload	$1,875,000,000	$1,907,000,000	-$32,000,000	-1.7%
Intermodal shipments	682,000	732,000	-50,000	-6.8%
Intermodal revenue per carload	$658,000	$672,000	-$14,000	-2.1%
Employee counts	20908	22475	-1,567	-7.0%
Train velocity (mph)	21.3	19	2	12.1%
Dwell time (hours)	8.4	9.2	-1	-8.7%
OR%	60.0%	60.3%	-0.3%	-0.5%
EPS	$0.99	$1.01	-$0.02	-2.0%