WASHINGTON (dpa-AFX) - Railroad operator CSX Corp. (CSX), Wednesday reported a drop in profit for the fourth quarter, hurt largely by higher expenses that offset increase in revenues. Nevertheless, earnings for the quarter fell short of Wall Street estimates, while revenues trumped expectations.
Jacksonville, Florida-based CSX's fourth-quarter profit dropped to $458 million or $0.49 per share from $466 million or $0.48 per share last year. On average, 27 analysts polled by Thomson Reuters estimated earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.
The fourth quarter included an operating property sale and a debt refinancing charge, both of which were $0.08 per share and offset each other in the quarter.
Revenues for the quarter rose 9 percent to $3.04 billion from $2.78 billion last year. Analysts had a consensus revenue estimate of $2.87 billion for the quarter.
Total volumes rose 5 percent to 1.73 million units, while revenue per unit rose 4 percent to $1,754 from $1,680 last year.
'In an environment where the company lost almost $470 million of coal revenue and experienced weakness across most of its markets, CSX delivered nearly $430 million of productivity savings in 2016, while improving customer service,' said Michael Ward, chairman and chief executive officer.
Total expenses rose 2 percent to $2.03 billion.
Moving ahead, CSX continues to expect 2016 full-year earnings to decline, reflecting the ongoing transition in the energy markets, along with the impact of the strong U.S. dollar and low commodity price.
CSX closed Tuesday's trading at $38.09, down $0.71 or 1.83%, on the NYSE. The stock further slipped $1.45 or 3.81% in the after-hours trade.
Copyright RTT News/dpa-AFX
© 2017 AFX News
