CSX 3Q profit lowered by domestic coal drop

   CSX Corp. had a profit of $455 million in the third quarter ending Sept. 28, 2 percent less than the $464 million it earned in the same 2011 period.
   Because of share repurchases over the past year, earnings per share also rose 2 percent.
   Revenue was $2.89 billion in the third quarter, down 2 percent from the same 2011 period.
   “CSX continues to respond well to moderating economic conditions and challenges in our domestic coal business,” said Michael J. Ward, chairman, president and chief executive officer, in a statement.
   The railroad said it “saw strong increases in export coal, intermodal and automotive shipments, total revenue in the quarter declined 2 percent when compared to the same period last year. This decline was driven by overall lower volume levels, a change in the mix of the company’s business and lower fuel recovery.”
   The company said coal revenues totaled $791 million in the third quarter, down 17 percent. Coal volume fell 16 percent.
   Total merchandise revenues were $1.6 billion, up 3 percent, boosted by increases in products such as chemicals, automobiles, and fertilizers.
   Intermodal revenues were $399 million, up 10 percent with an 8 percent increase in volume. Intermodal revenue per unit was up 2 percent.
   CSX said domestic intermodal growth was driven by highway-to-rail conversions, the addition of service lanes and growth with existing shippers. It noted international growth was driven by Maersk Line, a new customer, and growth from expanded service offerings from its new terminal in Northwest Ohio. – Chris Dupin