US rail company CSX has announced 3Q16 earnings of US$455 million – down from US$507 million in 3Q15 on weaker volumes. Revenue was US$2.71 billion, down from US$2.94 billion a year ago.
The 8% fall in revenue matches an 8% fall in volume demand, including a 21% year-on-year fall in coal volumes.
This fall in volume was partially offset by a 7% improvement in expenses, however, driven by US$112 million in efficiency gains and US$53 million in volume-related cost reductions.
“CSX continues to drive strong cost performance and efficiency in this dynamic market environment,” said Chairman and CEO, Michael Ward.
The company’s cost-cutting – which has included laying off workers and mothballing railcars – helped the company beat analyst expectations. Analysts surveyed by Thomson Reuters expected revenue of US$2.69 billion.
Operating income fell 10% in the quarter to US$841 million, while, the operating ratio rose 70 basis points to 69%.
Read the article online at: https://www.drybulkmagazine.com/rail-barge/13102016/csx-announces-fall-in-earnings-on-weak-volumes/