Rail profits on CSX 3Q increase by 32% when volume increases by 3% | WGN Radio 720

Omaha, Nebraska (AP) — CSX saw a 32% increase in third-quarter profits as the volume of goods it carried increased above strong levels last fall.

The Jacksonville, Florida-based railroad said Wednesday that it earned $ 966 million (43 cents per share) in the quarter. That’s up from $ 736 million a year ago, or 32 cents per share.

Shipments increased by 3% across the CSX network. This is because the industry is struggling to maintain production due to a continuing shortage of chips, despite a 26% drop in car shipments. Agricultural shipments also fell by 5%, but shipments in all other categories increased in the quarter.

CSX earnings exceeded 38 cents per share predicted by analysts surveyed by FactSet.

According to the railroad, sales increased 24% from last year to $ 3.29 billion due to increased sales. This was above the $ 3.06 billion predicted by analysts.

CSX said it maintains double-digit revenue growth prospects this year, even without the impact of the recent acquisition of Quality Carriers.

Last year, CSX and other major railroads suffered a sharp drop in shipments during the first months of the coronavirus outbreak, followed by a surge that began later last year and continues today. ..

As a result, pandemic-related regulations were lifted and the economy regained its vitality last fall, resulting in a tighter volume comparison this quarter than earlier this year.

Railroads are also addressing supply chain issues that are delaying shipments nationwide due to delinquency at ports and a shortage of truck drivers to deliver containers of goods to their final destination.

Jimfoot, CEO of CSX, said:

CSX is one of the largest railroads in the United States, operating over 21,000 miles (34,000 kilometers) of railroad tracks in 23 eastern states and two Canadian states.

CSX Corp. shares rose about 3% in after-hours trading after the announcement of financial results.

Rail profits on CSX 3Q increase by 32% when volume increases by 3% | WGN Radio 720

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