CSX workforce down 6% year-over-year in Q4

The railway will also run longer trains in an attempt to control costs as weak volumes are expected to continue falling going into the fourth quarter.    CSX Corp. expects its workforce to have diminished approximately 6 percent in the fourth quarter of 2015 compared to the same period a year ago, according to company executives.
   Chief Financial Officer Frank Lonegro told analysts and investors on the railway’s quarterly earnings call Wednesday CSX expects weakness in commodities market to continue to push demand for rail lower as the year goes on.
   The Jacksonville, Fla.-based railroad currently employs about 31,500 full time and part time workers, according to investment advisory firm Macroaxis.
   Rail volumes have already been weak in the first three quarters of 2015 and are projected to fall further in the fourth quarter, prompting lines to institute cost cutting measures.
   “Although we are projecting stable to favorable conditions for several key markets, this will be more than offset by unfavorable conditions for the remainder of the portfolio,” said Lonegro.
   “Overall, we expect fourth-quarter volume declines as we cycle a strong 2014 volume environment, continue to feel the effects of low natural gas and crude oil prices and the impact of strong currency on our export and import-sensitive markets.”
   CSX has also been running longer trains – 10 percent longer on average in Q3 2015 compared to Q3 2014 – and will continue doing so for the remainder of the year in an effort to keep costs in line with revenues.
   The company reported flat earnings profits, as net profits fell 0.39 percent to $507 million compared to the third quarter of 2014 as revenues dropped 9 percent to $2.94 billion compared with the same period a year ago.
   Overall volumes at CSX were down 3 percent in the third quarter to 1.7 million units and 1 percent for the first nine months of 2015 to 5.1 million units.

   CLARIFICATION (10/15/15): A previous version of this story said CSX would reduce its headcount by 6 percent during the fourth quarter of 2015. Those employee reductions are based on year-over-year figures and will not specifically take place during the fourth quarter.