CSX (NASDAQ: CSX) reported third-quarter 2020 net income of $736 million, or 96 cents per share, compared with $856 million, or $1.08 per share, in the third quarter of 2019 amid a drop in revenue and “lower economic activity resulting from the COVID-19 pandemic.”
Third-quarter revenue fell 11% year-over-year to $2.65 billion, with intermodal volume growth more than offset by declines in coal and merchandise volumes, CSX said. Lower fuel surcharge revenue also affected overall revenue.
But expenses were down 11% to $1.51 billion amid “continued efficiency gains and volume-related reductions,” the company said.
Third-quarter operating income also slipped 11% to $1.14 billion.
Despite the revenue decline, CSX’s operating ratio for the third quarter was 56.9%, which the railroad described as being in line with the prior year. Operating ratio (OR) is a tool that some investors use to gauge the financial health of a company, with a lower OR implying improved health.
Meanwhile, service metrics slipped in the third quarter, with terminal dwell at 9.7 hours compared with 8.9 hours a year ago and train velocity at 19.6 mph versus 20.3 mph year-over-year.
“I am incredibly proud of how CSX’s exceptional team of railroaders continues to deliver against the challenges this year has presented,” said President and CEO Jim Foote. “Their hard work allowed CSX to efficiently absorb the record rebound in volume while maintaining high levels of customer service.”
Click here for more FreightWaves articles by Joanna Marsh.
Related articles:
CSX, CN announce board appointments
Progress continues on construction of CSX intermodal terminals
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now