CSX reports 'strong performance' in Q3

CSX Corp. yesterday reported third-quarter net earnings jumped 95 percent to $894 million, or $1.05 per share, from $459 million, or 51 cents per share, in the same period a year ago. The per-share earnings beat analysts' estimates for the quarter.

CSX's operating ratio of 58.7 percent set a company third-quarter record. A year ago, CSX posted a third-quarter operating ratio of 68.4 percent.

"This quarter highlights the progress towards our transformation as we aim to deliver industry leading service to our customers," said President and Chief Executive Officer James Foote in a press release. "I am proud of our team of hard-working employees who were able to produce these results."

Revenue in the quarter rose 14 percent over the prior year to $3.13 billion based on volume growth, increases in fuel recovery, favorable mix, higher supplemental revenue and pricing gains, CSX officials said.

Expenses dropped 2 percent to $1.84 billion, as expenses associated with increased volume and higher fuel prices were offset by efficiency gains as CSX continues to implement its scheduled railroading business model, company officials said.

Third-quarter operating income climbed 49 percent to $1.29 billion from $868 million a year ago.

During an earnings conference call yesterday, Foote said company officials are "very excited about the railroad's strong performance."

For the full year, CSX expects to reach 6 percent to 8 percent revenue growth, which is better than what company officials anticipated coming into the 2018, Foote said.

"Only 8 months since our investor conference and — by almost any measure — we are ahead of where I thought I we would be," said Foote of the railroad's progress under its business model. "I am proud of what has been accomplished and I'm encouraged by all the opportunity in front of us."

In addition, Foote noted that the company already met its workforce reduction target of 2,000 positions for the full year. Workforce reductions will continue next year as the Class I continues to implement operating efficiencies under its business model. A specific number of workforce reductions for 2019 will be announced later, he said.

To learn more about CSX's business model for operations, read the cover story in Progressive Railroading's October issue.