CSX reports higher revenue, earnings in Q2

CSX yesterday reported it achieved higher operating revenue and net income in second-quarter 2022 compared with the same period in 2021.

Net income in Q2 2022 rose to $1.178 billion, or 54 cents per share, compared to $1.173 billion, or 52 cents per share, a year ago. Operating income inched up 1% to $1.7 billion.

Revenue climbed 28% to $3.82 billion in the quarter, due to higher revenue in nearly all markets driven by pricing gains, fuel surcharge and the addition of Quality Carriers, a North American provider of bulk liquid chemicals truck transportation. 

CSX posted an operating ratio (OR) of 55.4%, up from 43.4% a year ago. The higher OR included the effects of lower real estate gains, the acquisition of Quality Carriers and higher fuel prices.

Also, the Q2 results included $18 million of expense related to the acquisition of Pan Am Railways and a $122 million gain (4 cents per share after tax) from property sales recognized from the 2021 agreement with Virginia. Second-quarter 2021 results included a $349 million gain (12 cents per share after tax) from the same agreement.

"I am very proud of CSX’s entire team of employees, which now includes Pan Am railroaders, for their hard work and dedication over this quarter,” said CSX President and CEO James Foote in a press release. 

"Though volatile commodity prices and persistent inflation have added uncertainty to the economy, our efforts remain focused on adding the resources needed to deliver improvements in our network performance, lift customer satisfaction and develop new rail service solutions to drive meaningful growth over the long term," Foote added.