CSX posts revenue, earnings growth in Q1

CSX Corp. announced first-quarter net income rose 2 percent to $362 million, or 39 cents per share, from $356 million, or 37 cents per share, in the same period a year ago.

Excluding a $173 million restructuring charge in this year's first-quarter results, adjusted earnings were 51 cents per share, according to a CSX press release.

Revenue for the quarter climbed 10 percent to $2.87 billion compared with $2.6 billion in second-quarter 2016. The revenue growth was attributed to volume growth across most markets, overall core pricing gains, increased fuel recovery and favorable mix, CSX officials said.

Although the $173 million restructuring charge drove a 13 percent year-over-year increase in expenses for the quarter, the railroad posted $123 million in efficiency savings. Looking ahead, the railroad will continue to focus on improving asset utilization to achieve operations efficiency and reducing cost structuring, company officials said.

Today's earnings call with investors was the first time E. Hunter Harrison discussed quarterly results as CSX president and chief executive officer. Harrison left Canadian Pacific earlier this year to lead CSX.

"I am pleased to join the CSX team and working together we are going to make this company the best North American railroad, capable of consistently meeting and exceeding the expectations of our customers and our shareholders," said Harrison in the press release. "As the business environment continues to improve and we implement Precision Scheduled Railroading, CSX will realize these objectives while driving volume growth and achieving a new level of financial performance."

CSX's second-quarter volume outlook is favorable due to anticipated growth in most markets. The company maintains a favorable outlook in the second quarter for agriculture and food, export coal, fertilizers, forest products, intermodal and minerals; a neutral outlook for automotive, chemicals, metals and equipment; and an unfavorable outlook for domestic coal.