CSX SECOND-QUARTER NET PROFIT JUMPS 24%
CSX Corp. said strong rail and intermodal earnings boosted the Richmond, Va.-based company to a second-quarter net income of $135 million, up 24 percent over the year-earlier quarter.
Revenues for the quarter were $2.07 billion, up from $2.06 billion in the second quarter of 2001.
'We're starting to see some signs of economic recovery influencing demand for rail transportation,' said John W. Snow, chairman and chief executive officer of CSX Corp.
Rail and intermodal operating income rose 21 percent to $293 million in the quarter, as total volumes rose 1 percent. About $11 million in operating income was from net settlements of contract disputes. Revenue was $1.54 billion, flat against the year-earlier quarter.
'Our auto, merchandise and intermodal revenues are all up for the quarter, more than offsetting continued weakness in the coal sector due to prevailing, higher-than-normal utility stockpiles,' Snow said.
Auto revenues rose 6 percent to $148 million, merchandise improved 1 percent to $717 million and intermodal rose 8 percent to $537 million. Coal was down 9 percent to $390 million.
Expenses were down $44 million, due to lower fuel costs and cost-cutting efforts, said Michael J. Ward, president of CSX.
CSX Transportation, the rail segment, reported operating income of $244 million, up from $219 million, on revenue of $1.54 billion, down from $1.56 billion. Operating ratio improved 1.8 percentage points to 84.1 percent.
CSX Intermodal' operating income more than doubled, to $49 million, from $23 million, on revenue of $296 million, up from $271 million in the second quarter of 2001.. Operating ratio improved to 83.4 percent, from 91.5 percent.
Earnings from the marine business — CSX Lines and CSX World Terminals, were about even with last year. CSX Lines saw operating income improve to $9 million, from $7 million on revenues of $189 million, up from $168 million.
CSX Lines saw market-share gains in the Hawaii and Puerto Rico trade lanes. The Puerto Rico lane saw one carrier leave the trade, when Navieras was sold to Sea-Star. CSX Lines added a fifth vessel to the trade, which increased operating expenses for the quarter to $19 million.
CSX World Terminals operating income fell $2 million to $16 million, due to the weak economy in the Asia and Latin America sectors and expenses associated with start-up ventures, CSX said. Revenue slipped $3 million to $58 million.