• ITVI.USA
    15,556.710
    2.060
    0%
  • OTLT.USA
    2.884
    0.003
    0.1%
  • OTRI.USA
    20.530
    -0.020
    -0.1%
  • OTVI.USA
    15,546.980
    -0.050
    0%
  • TSTOPVRPM.ATLPHL
    2.820
    -0.100
    -3.4%
  • TSTOPVRPM.CHIATL
    3.580
    -0.100
    -2.7%
  • TSTOPVRPM.DALLAX
    1.260
    -0.030
    -2.3%
  • TSTOPVRPM.LAXDAL
    3.650
    0.030
    0.8%
  • TSTOPVRPM.PHLCHI
    2.330
    -0.090
    -3.7%
  • TSTOPVRPM.LAXSEA
    4.020
    -0.150
    -3.6%
  • WAIT.USA
    127.000
    -1.000
    -0.8%
  • ITVI.USA
    15,556.710
    2.060
    0%
  • OTLT.USA
    2.884
    0.003
    0.1%
  • OTRI.USA
    20.530
    -0.020
    -0.1%
  • OTVI.USA
    15,546.980
    -0.050
    0%
  • TSTOPVRPM.ATLPHL
    2.820
    -0.100
    -3.4%
  • TSTOPVRPM.CHIATL
    3.580
    -0.100
    -2.7%
  • TSTOPVRPM.DALLAX
    1.260
    -0.030
    -2.3%
  • TSTOPVRPM.LAXDAL
    3.650
    0.030
    0.8%
  • TSTOPVRPM.PHLCHI
    2.330
    -0.090
    -3.7%
  • TSTOPVRPM.LAXSEA
    4.020
    -0.150
    -3.6%
  • WAIT.USA
    127.000
    -1.000
    -0.8%
BusinessCompany earningsFinanceNewsRail

CSX’s Q1 net profit falls 8% on higher expenses, revenue drop

Operating income fell 7% to $1.1 billion

CSX’s (NASDAQ: CSX) net profit for the first quarter of 2021 slipped 8% from a year ago on a 2% increase in expenses and a 1% drop in revenue.

Net income for the first quarter of 2021 was $706 million, or 93 cents per share, compared with $770 million, or $1 per share, for the first quarter of 2020.

First-quarter revenue fell 1% year-over-year to $2.81 billion, with declines in merchandise, coal and fuel surcharge revenues offsetting gains for intermodal and other revenue growth, CSX said. 

Meanwhile, expenses rose 2% to $1.71 billion on higher labor costs and costs for materials and supplies, as well as higher costs for equipment and rent. Operating income slipped 7% to $1.1 billion.

Operating ratio (OR), a tool that investors sometimes use to gauge the financial health of a company, was 60.9% for the first quarter, up from 58.7% for the first quarter of 2020. A lower OR can imply improved financial health.

(CSX)

“I am extremely proud of how our team of railroaders handled the challenges presented by the difficult operating conditions this quarter,” said CSX President and CEO Jim Foote. “Looking forward, the strengthening economic momentum is providing added visibility into volume growth, and we are taking the necessary steps to ensure we are ready to handle these volumes and provide our customers with an industry-leading service product.”

Subscribe to FreightWaves’ e-newsletters and get the latest insights on freight right in your inbox.

Click here for more FreightWaves articles by Joanna Marsh.

Joanna Marsh

Joanna is a Washington, DC-based writer covering the freight railroad industry. She has worked for Argus Media as a contributing reporter for Argus Rail Business and as a market reporter for Argus Coal Daily.

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.