WASHINGTON (dpa-AFX) - Railroad operator CSX Corp. (CSX), Tuesday reported a drop in profit for the first quarter, hurt largely by the harsh winter that offset a moderate growth in revenues. Both earnings and revenues for the quarter topped Wall Street's expectations. The company also boosted its quarterly dividend by 7 percent.
Jacksonville, Florida-based CSX's first-quarter profit dropped to $398 million or $0.40 per share from $462 million or $0.45 per share last year. On average, 25 analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter.
Revenues for the first quarter grew 2 percent to $3.0 billion on volume increases of 3 percent, with strength in intermodal and merchandise markets more than offsetting declines in coal. Nineteen analysts had a consensus revenue estimate of $2.99 billion for the quarter.
The company blamed the harsh winter for its lower results. CSX estimates that weather-related disruptions increased expenses by about six cents per share, and impacted revenue contribution by about two to three cents.
Last month, the company had warned about its results, citing the harsh winter weather. At that time, CSX said the impact of winter on its first-quarter earnings had approached about $0.10 per share.
Total expenses for the quarter increased 9 percent to $2.27 billion from $2.08 billion last year.
Moving ahead, CSX continues to expect modest full-year earnings growth for 2014 on the strength of broad-based merchandise and intermodal gains and an improving domestic coal environment.
CSX increased its quarterly dividend by 7 percent to $0.16 per share, payable on June 13 to shareholders of record on May 28.
CSX closed Tuesday's trading at $28.29, down $0.09 or 0.32%, on the NYSE. The stock, however, gained $0.11 or 0.39%, in after-hours trade.
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