CSX posts lower profit, revenue in Q3

CSX yesterday reported third-quarter 2023 net earnings of $846 million, or 42 cents per diluted share, compared with $1.11 billion, or 52 cents per diluted share, in the same period a year ago.

The Class I posted Q3 2023 revenue of $3.57 billion, down 8% from a year ago, as the effects of lower fuel prices, reduced intermodal storage revenue, a decline in export coal benchmark prices and a decrease in intermodal volume more than offset the effects of higher merchandise yields and coal volume growth, CSX officials said in a press release.

Operating income in the quarter plunged 18% to $1.3 billion. CSX posted an operating ratio of 63.8%, up from 59.5% a year ago. It includes negative impacts of $350 million related to net fuel, storage revenue and coal prices, partially offset by the favorable impact of $42 million due to out-of-period labor and fringe expenses incurred in the prior year, CSX officials said.

The company's efforts during the quarter "centered on delivering the reliable customer service that has allowed us to remain resilient and successfully maneuver through mixed markets," said President and CEO Joe Hinrichs.

"Our merchandise business remained solid, and our coal operations delivered strong volume growth," he said. "As we approach year-end, we are proud of the cohesive culture taking shape across our ONE CSX team that is helping to drive positive business results, and we are encouraged to see improving sequential trends in some of our key end markets."

Meanwhile, CSX also announced yesterday the ratification of a paid sick leave agreement involving the Seaboard Coast Line property with the Brotherhood of Railroad Signalman covering nearly 400 employees. The agreement ensures employees can take necessary time off from work to recover from illness without worrying about their financial stability, according to a CSX press release.