CSX Profit Climbs 15%

(RTTNews) - Railroad operator CSX Corp (CSX) said Tuesday after the markets closed that its fourth quarter profit rose 15% from last year, helped by strong volume growth across most markets amid an improving economy.

The company's quarterly earnings per share came in line with analysts' expectations, while its quarterly revenue just managed to beat analysts' forecast.

Looking forward, the company said it still expects to generate double-digit growth in earnings per share and margin expansion in 2015, progressing toward a mid-60s operating ratio longer term.

"CSX is capturing broad-based market strength, completing strategic infrastructure projects and adding resources to further improve service performance and leverage growth opportunities," said Michael Ward, CSX chairman, president and chief executive officer.

CSX shares are currently gaining 1.01% in after hours trading after closing the day's regular trading session at $33.55, down 36 cents or 1.06%. The shares trade in a 52-week range of $25.84 to $37.99.

CSX is the first major railroad to report earnings for the latest quarter. CSX's total shipment volume for the quarter climbed 6% from last year, while its average revenue per unit declined 1% reflecting lower fuel recoveries.

Fourth quarter coal volume rose 11%, led by 22% increase in shipments of domestic utility coal, while intermodal shipments increased 5%. Total merchandise volume, which includes agricultural, industrial and housing and construction shipments, climbed 5%.

For the fourth quarter ended December 26, 2014, The Jacksonville, Florida-based company reported net income of $491 million or $0.49 per share, compared to $426 million or $0.42 per share for the year-ago quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to earn $0.49 per share for the fourth quarter.

Fourth quarter revenue rose 5% to $3.19 billion from $3.03 billion in the same quarter last year, with strength across merchandise, intermodal and coal. Nineteen analysts had a consensus revenue estimate of $3.18 billion for the fourth quarter.

In October, Canadian Pacific Railway Ltd. (CP, CP.TO) said that exploratory conversations held with CSX about a possible business combination have ended.