WASHINGTON (dpa-AFX) - Railroad operator CSX Corp. (CSX), Tuesday reported an 11 percent increase in profit for the first quarter, as revenues improved and operating costs dropped. The company also boosted its quarterly dividend by 13 percent and announced a new $2 billion share buyback plan.
Jacksonville, Florida-based CSX's first-quarter profit rose to $442 million or $0.45 per share from $398 million or $0.40 per share last year. On average, 26 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter rose to $3.03 billion from $3.01 billion a year earlier. Analysts had a consensus revenue estimate of $3.02 billion for the quarter. CSX said revenue increase reflects growth across many of its markets and an improved pricing environment, partially offset by the impact of low natural gas prices, lower fuel recoveries and the strong U.S. dollar.
Total volumes increased 1 percent to 1.64 million units, while revenue per unit dropped slightly to $1,851 from $1,859 last year.
'In this dynamic economic and business environment, CSX's core earnings remain strong and we are continuing our drive to provide excellent service for our customers and value for our shareholders,' said Chief Executive Michael Ward.
Total expenses dropped 4 percent to $2.18 billion from $2.27 billion last year, helped by lower fuel prices and cost-saving initiatives.
CSX lifted its quarterly dividend by 13 percent to $0.18 per share, payable on June 15 to shareholders of record on May 29. The company also approved a new $2 billion share repurchase program, which is expected to be completed over the next 24 months.
CSX closed Tuesday' trading at $33.21, up $0.13 or 0.39%, on the NYSE. The stock, further gained $0.81 or 2.44% in the after-hours trade.
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