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.”