Profit up of 19 persent by CSX on demand for coal

Profit up of 19 persent by CSX on demand for coal

It is reported that as the trend continues its efforts to strengthen its operations and management team in such a hard way, freight railroad operator CSX Corp. said Tuesday its second-quarter earnings rose 19 percent on strong demand for coal, grain and metals. Besides, the company emphasizes its Full-year earnings prediction with a target of profit in 2008 in the upper end ranging from $3.40 to $3.60 a share.

The Jacksonville, Fla.-based company earned $385 million, or 93 cents per share, in the June quarter, compared with $324 million, or 71 cents per share, a year earlier. Excluding tax-related gains, CSX earned 89 cents in the latest period. Revenue rose 15 percent to $2.91 billion. Analysts polled by Thomson Financial forecast a profit of 90 cents per share on revenue of $2.85 billion.

CSX said continued robust markets for U.S. coal exports, grain, ethanol, metals and phosphates and fertilizers drove results. Strong pricing in these markets offset a 3 percent slip in total volume.

“CSX continues to deliver significant value for shareholders and demonstrate the secular strength of our business,” CSX Chairman and Chief Executive Michael Ward said in a statement. “The strong earnings performance delivered by this team was supported by all-time records in revenue and operating income, despite the effects of a softer economy.”

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