WASHINGTON (dpa-AFX) - Railroad operator CSX Corp. (CSX), Tuesday reported an increase in profit for the second quarter, as revenues increased on higher volumes. Moving ahead, the company reaffirmed its full year earnings outlook.
Jacksonville, Florida-based CSX said its second-quarter profit rose to $529 million or $0.53 per share from $521 million or $0.51 per share last year. On average, 25 analysts polled by Thomson Reuters expected earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenue for the second quarter grew 7 percent to $3.24 billion from $3.05 billion last year. Analysts estimated revenues of $3.25 billion for the second quarter.
Chief Executive Michael Ward said, 'With the broad-based economic momentum we are seeing, the core earning strength of this company is improving and driving value for shareholders.'
As expected, the transportation industry rebounded from the previous quarter when harsh winter had impacted shipping volumes and increased costs.
CSX said total volume grew 8 percent while average revenue per unit declined 1 percent. Coal volume increased 6 percent, while intermodal shipments rose 7 percent. Meanwhile, total merchandise volume rose 8.3 percent.
For the full year 2014, CSX continues to expect modest full-year earnings growth. The company also increased its 2014 capital investment plan by $100 million to $2.4 billion to support sustainable growth.
CSX closed Tuesday's regular trade at $31.15, up $0.12 or 0.39%, on the NYSE. The stock, however, dropped $0.15 or 0.48% in after-hours trade.
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