CSX EXPECTS EARNINGS BOOST IN SECOND QUARTER

CSX EXPECTS EARNINGS BOOST IN SECOND QUARTER

CSX EXPECTS EARNINGS BOOST IN SECOND QUARTER

CSX Corp. said Wednesday it expects second quarter earnings from continuing operations to improve 125 percent over the year-earlier quarter, to $108 million, due to strong performance from rail operations and grains from real estate activities.
   The Richmond, Va.-based parent of CSX Transportation, CSX Lines and CSX World Terminals, expects rail and intermodal second quarter operating income to be $242 million, compared to $158 million for the second quarter of 2000.
   'Rail operating income is up sharply as locomotives, cars and crews are being utilized more efficiently,' said John W. Snow, chairman and chief executive officer. 'Revenues held up well in the quarter, a period in which the industrial sector suffered through its worst downturn in two decades.'
   Rate increase and the strength of coal volumes helped fuel the increase. Fuel costs were roughly the same as the year-earlier period.
   Real estate activities will provide $34 million in operating income compared to $24 million a year ago. Earnings from container shipping and terminal operations are expected to be about the same as last year.
   CSX also said it will reduce its regularly quarterly dividend, payable Sept. 14, by 10 cents per share to 20 cents. The move will provide”financial flexibility” to reduce debt and raise cash flows.
   CSX will official release its second-quarter results on July 26.