• ITVI.USA
    15,948.420
    108.680
    0.7%
  • OTLT.USA
    2.798
    -0.001
    0%
  • OTRI.USA
    22.010
    -0.060
    -0.3%
  • OTVI.USA
    15,936.600
    100.010
    0.6%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
  • ITVI.USA
    15,948.420
    108.680
    0.7%
  • OTLT.USA
    2.798
    -0.001
    0%
  • OTRI.USA
    22.010
    -0.060
    -0.3%
  • OTVI.USA
    15,936.600
    100.010
    0.6%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
American ShipperIntermodalShipping

Slumping coal shipments hit CSX’s bottom line in 2015

The Jacksonville, Fla.-based railway reported revenues in the fourth quarter of 2015 fell 13 percent compared to the fourth quarter of 2014 thanks in part to a 32 percent drop in coal volumes.

   CSX Corporation saw both revenues and profits fall in the fourth quarter of 2015 as a substantial downshift in coal shipments affected its bottom line.
   For the three months ended in December, net earnings dropped 5 percent to $466 million as revenues plunged 13 percent to $2.78 billion compared to the corresponding 2014 period, according to the company’s most recent financial statements.
   After setting a Q3 record for earnings per share (EPS) in 2015, EPS were $0.48 for the fourth quarter, down just 2 percent from $0.49 per share the previous year.
   For the full 2015 year, the Jacksonville, Fla.-based railway posted a profit of $1.97 billion, a 2 percent bump from 2014, despite revenues falling 7 percent year-over-year to $11.8 billion. Full-year EPS stood at $2.00, up 4 percent from $1.92 per share the year prior.
   CSX primarily attributed the decline in Q4 revenues to “the impact of lower fuel recovery, a 6 percent volume decline and continued transition in the company’s business mix,” which more than offset growth in base rates.
   Coal in particular contributed to the lower volumes, plummeting 32 percent year-over-year for the quarter and 16 percent overall in 2015. Revenues from coal were $449 million for Q4 2015 and 2.3 billion for the full year, year-over-year decreases of 38 percent and 19 percent, respectively.
   Previously the railroad sector’s largest commodity by volume, coal accounts for about one third of total U.S. carloads, but volumes have fallen sharply amid new Environmental Protection Agency regulations requiring power plants to burn it more cleanly and a drop in the price of natural gas.
   Total rail cargo volumes in the United States fell 2.5 to 28 million carloads and containers in 2015, according to the Association of American Railroads. AAR data indicates overall 2015 average weekly carloads for coal transported by rail in the U.S. is down around 10 percent from last year.
   The railroad said it also cut expenses by 13 percent in the fourth quarter, primarily thanks to continued low fuel prices, lower volume-related costs and increases in efficiency.
   “CSX delivered solid results in 2015 by balancing strong service with compelling cost control and efficiency gains despite a market challenged by low commodity prices and global impacts of the strong U.S. dollar.” Chairman and CEO Michael J. Ward said in a statement.
   Ward also reiterated CSX’s belief that headwinds in the commodities markets, especially coal and crude oil will continue to affect results in the coming year.
   “With negative global and industrial market trends projected for 2016, full-year earnings per share are expected to be down compared to 2015. CSX will continue to be rigorous about efficiency, resources and service quality in order to maximize shareholder value and achieve a mid-60s operating ratio longer term.” 
   Meanwhile, the railroad also announced it has appointed several new leaders in its sales and marketing department.
   CSX named Dean M. Piacente as vice president-intermodal; Clark Robertson, vice president-chemicals; and Tim McNulty, vice president-agriculture. All three will report to Fredrik J. Eliasson, executive vice president and chief sales and marketing officer.
   Bill Clement, who previously headed the intermodal division, has left the company and is pursuing other interests, CSX said.
   Piacente, who joined CSX in 1987, assumes the intermodal leadership role from his previous position as vice president-chemicals. He also served in other senior sales and marketing capacities and as vice president-finance.
   Robertson came to the company in 2010 and will transition to his new role as vice president-chemicals from his prior role as assistant vice president-regional development.
   A CSX employee since 1985, McNulty was promoted to vice president-agriculture, which will now include the company’s phosphate and fertilizer market, in addition to shipments of grain and ethanol.
   “We thank Bill Clement for his tremendous service that included helping the company build the premier intermodal network in the East,” Eliasson said of the appointments. “Dean Piacente, Clark Robertson, and Tim McNulty are proven sales and marketing leaders who will continue to work effectively across our company and with customers to develop new relationships, expand our service offerings, and maximize growth opportunities.”
   “Dean’s record of growth, revenue generation, and customer relationships makes him the ideal choice to lead intermodal, which is a significant growth driver for CSX as we work with our trucking partners to convert to rail-based solutions more of the approximately 9 million highway loads in the East that travel 550 miles or more,” he added.

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