CSX revenues up, volumes down
CSX Corp. said it was able to increase prices even in the face of declining demand, resulting in second quarter revenue of $2.53 billion compared to $2.42 billion the same period the prior year.
“Strong pricing drove revenue-per-unit gains of 7 percent while overall second quarter volume was down approximately 2 percent, compared to last year, reflecting continued softness in the housing and automotive-related sectors of the economy,” the railroad said.
CSX reported second quarter earnings of $324 million, compared to $390 million in the same period last year.
The result in the second quarter of last year had received one time boosts from insurance recoveries related to Hurricane Katrina that amounted to $78 million after taxes and resolution of tax matters that amounted to $11 million.
The company said international intermodal volumes were lower primarily due to the loss of a few accounts and the closing of an inland terminal in Kingsport, Tenn. The city is home to Eastman Chemical Co.
It said several steamship carriers had ended service to certain inland markets. Earlier this year, Maersk Line, the world’s largest container carrier, ended intermodal service between some ports and inland destinations.
CSX said revenue per unit in its international intermodal business increased due to continued strength in pricing.
Domestic intermodal volumes increased due to a new shorter-haul train service. The company said the an unfavorable mix impact on revenue per unit from this new traffic more than offset price gains in the remaining domestic business.
In February CSX began a new intermodal service between Atlanta and Memphis where trains are then interchanged with Burlington Northern Santa Fe moving to and from the West Coast. The company said that it now operates two trains in each direction on that route daily and that it is considering adding a third.