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.
“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.
Related links:
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now