CSX earnings rise, operating ratio dips
Written by William C. Vantuono, Editor-in-ChiefCSX has reported record second-quarter results, with operating income up 21% to $926 million, earnings per share up 28% to 46 cents, and an operating ratio that dropped to 69.3%, an improvement of 190 basis points.
Revenue in the quarter improved 13% from the prior year to $3.0 billion, with increases across all major markets. CSX said overall revenue was driven by “volume growth, pricing that reflects the value of freight rail transportation, and recoveries that offset higher fuel prices.”
Net earnings increased to $506 million vs. $414 million in the same period last year.
“As our markets continue to expand, CSX is delivering outstanding results for shareholders,” said Michael J. Ward, chairman, president, and CEO. “At the same time, we are taking a number of actions to position the operations for greater customer demand, now and over the long term.”
The company said its earlier announced plans to make 2011 capital investments of $2.2 billion are “consistent with its intentions to reinvest an average of 18% of its revenues into its business through 2015 to furtherenhance the capacity, quality and flexibility of its rail network. The company remains on target to achieve its current near- and long-termfinancial guidance, including a high-sixties operating ratio in 2011 and a 65% operating ratio by no later than 2015.”
