CSX’s profit rises 136% in second quarter
Jacksonville-based CSX Corp. today reported second-quarter net income of $390 million, up 136 percent from $165 million for the same period 2005.
CSX’s second quarter results included a gain of $126 million from insurance recoveries related to Hurricane Katrina. Without the gain, CSX posted a 60 percent rise in net income.
Consolidated operating income for surface transportation in the second quarter was $646 million, up 53 percent compared to the $431 million posted in the prior-year quarter. On a consolidated basis, operating revenue was up 12 percent to $2.42 billion from $2.16 billion.
“These financial gains are a result of momentum in our operations, improvements in productivity and service, and our ability to capture price in a strong market environment,” said Michael J. Ward, CSX chairman and chief executive officer. “We are confident in our ability to achieve double digit growth in operating income, earnings and free cash flow over the next five years.”
For the year to date, CSX posted a net income of $635 million, down 15 percent from $744 million after six months in 2005. Operating income improved 46 percent to $1.14 billion from $785 million. CSX’s revenue for the year is up 11 percent to $4.75 billion from $4.27 billion.