WASHINGTON (dpa-AFX) - Railroad operator CSX Corp. (CSX) said Tuesday after the markets closed that its fourth quarter profit fell 5% from last year, when results were boosted by real estate gains.
The company's quarterly earnings per share also came in below analysts' expectations, but its quarterly revenue just managed to beat analysts' forecast.
'Supported by the strength of an expanding economy, we delivered 6 percent volume growth in the quarter, despite another sharp decline in coal,' said Michael Ward, CSX chairman, president and chief executive officer.
Looking forward, the company said it remains on target to sustain a high-60s operating ratio by 2015 and achieve a mid-60s operating ratio longer-term.
CSX shares are currently losing 3.56% in after hours trading after closing the day's regular trading session at $29.23, up 35 cents or 1.21%. The shares trade in a 52-week range of $20.57 to $29.25.
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 fourth quarter ended December 27, 2013, the Jacksonville, Florida-based company reported net income of $426 million or $0.42 per share, compared to $449 million or $0.44 per share for the year-ago quarter.
The year-ago results included after-tax real estate gains of $57 million or $0.06 per share.
On average, 24 analyst polled by Thomson Reuters expected the company to earn $0.43 per share for the fourth quarter.
Total revenue for the fourth quarter rose 5% to $3.03 billion from $2.90 billion a year ago, driven by broad-based strength in the company's merchandise and intermodal markets. Eighteen analysts had a consensus revenue estimate of $3.01 billion for the fourth quarter.
Fourth quarter volume increased 6% year-over-year, as growths in merchandise and intermodal more than offset lower coal volume.
Operating ratio for the fourth quarter was 73.2%, compared to 71.8% in the prior year quarter.
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