WASHINGTON (dpa-AFX) - Railroad operator CSX Corp. (CSX) said Tuesday after the markets closed that its second quarter profit rose 4% from last year, helped by higher revenue and efficiency gains.
The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue.
The company also said it continues to expect annual earnings per share growth of 10% to 15% on average through 2015 off of the 2013 base, which is now expected to be roughly flat compared to prior year levels.
'CSX continues to drive solid growth in many of its markets and is encouraged by the team's sustained track record of delivering excellent operating performance in a wide range of market conditions,' said Michael Ward, CSX chairman, president and chief executive officer. 'We remain sharply focused on creating strong, sustained value for customers and shareholders, as the economy appears to be slowly gaining strength.'
CSX shares are currently gaining 1.46% in after hours trading after closing the day's regular trading session at $24.64, up 30 cents or 1.23%. The shares trade in a 52-week range of $18.88 to $26.36.
CSX is the first of big railroads to report quarterly numbers for the season. Results of railroad operators are a vital indicator of economic health of a nation.
For the second quarter ended June 28, 2013, the Jacksonville, Florida-based company reported net income of $535 million or $0.52 per share, compared to $512 million or $0.49 per share for the year-ago quarter.
On average, 28 analyst polled by Thomson Reuters expected the company to earn $0.47 per share for the second quarter.
The latest quarter results include an income tax benefit of $17 million or $0.02 per share, due to a deferred tax adjustment, the resolution of certain tax matters and a change in state tax legislation. The year-ago results included an income tax benefit of $9 million or $0.01 per share.
Total revenue for the second quarter rose 2% to $3.07 billion from $3.01 billion a year ago, driven by volume growth and higher revenue per unit resulting from pricing gains across most markets. Nineteen analysts had a consensus revenue estimate of $3.02 billion for the second quarter.
Second quarter volume increased 1% year-over-year, as growth in merchandise and intermodal more than offset lower coal volume.
Among merchandise, the company recorded volume growths in industrial as well as in housing and construction, while the agricultural segment recorded lower volume.
Operating ratio for the second quarter was 68.6%, compared to 68.7% in the prior year quarter.
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© 2013 AFX News
