CSX doubles 3rd-quarter profit
Jacksonville-based CSX Corp. doubled its third-quarter net income to $328 million from $164 million a year ago.
“Improved service, growing volumes and continued strong pricing drove our strong third quarter financial results,” said Michael Ward, chairman and chief executive officer of CSX Corp.
CSX’s operating income for surface transportation in the third quarter was $489 million, up 35.5 percent compared to the $361 million posted in the prior-year quarter. On a consolidated basis, operating revenue was up 14 percent to $2.4 billion from $2.1 billion.
The company’s earnings in the quarter included a gain of $15 million from Hurricane Katrina insurance recoveries and the resolution of certain income tax matters.
For the year to date, CSX posted net income of $963 million, up 6 percent from $908 million after nine months in 2005. Operating income improved 43.3 percent to $1.6 billion from $1.1 billion. CSX’s revenues were up 12 percent to $7.2 billion from $6.4 billion.
“We expect demand for rail and intermodal transportation services to remain strong,” Ward said.