CSX’s Q4 net profit roughly flat with last year

CSX’s operating ratio was 57% in the fourth quarter

CSX's fourth-quarter 2020 net income was $760 million. (Photo: Flickr/David Wilson)

CSX’s (NASDAQ: CSX) fourth-quarter net income slipped 1% amid a 2% decline in revenue, the Eastern U.S. railroad reported Thursday.

Fourth-quarter 2020 net profit was $760 million, or 99 cents per share, compared with $771 million, or 99 cents per share, in the fourth quarter of 2019. 

(CSX)

CSX said results for the fourth quarter of 2020 included a charge of $48 million, or 5 cents per share after tax, related to the early retirement of debt.

Revenue slipped 2% to $2.83 billion as volume and revenue growth for intermodal and agricultural and food products weren’t enough to offset lower fuel surcharge revenue declines for coal.

Expenses for the quarter were $1.61 billion, a 7% decrease from $1.73 billion in the fourth quarter of 2019. But operating income was 5% higher, at $1.22 billion.

(CSX)

Operating ratio (OR) was 57% in the fourth quarter, compared with 60% for the same period in 2019. Investors use OR to gauge the financial health of a company, with a lower OR implying improved health. OR is a company’s operating expenses as a percentage of its revenue. 

Meanwhile, service metrics slipped compared with a year ago, with dwell time rising 21% to 10.2 hours from 8.4 hours and train velocity falling 11% to 18.9 mph from 21.3 mph.

“I am extremely proud of how CSX’s team of railroaders continuously rose to the challenges this year presented,” said President and CEO Jim Foote. “Throughout this difficult period, they have shown an unwavering commitment to our customers and remained focused on ensuring the delivery of critical goods to millions of Americans.”

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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.