Railroad operator CSX Corp. (CSX) said Tuesday its profit for the first quarter grew 24% over last year, as the economic recovery led to higher revenues and productivity. Quarterly earnings came in well ahead of analysts' expectations, as did revenues. Owing to the nation's growing demand for freight transportation, the company indicated investments $1.7 billion in 2010.
The Jacksonville, Florida-based company posted net earnings of $306 million or $0.78 per share for the first quarter, up from $246 million or $0.62 per share in the prior year quarter. On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share for the first quarter. Analysts' estimates typically exclude special items.
Operating income for the quarter grew 21% to $634 million from $522 million in the year-ago quarter.
First quarter revenue increased 11% to nearly $2.50 billion from $2.25 billion in the same quarter last year, reflecting gains across most of the company's markets. Sixteen analysts had a consensus revenue estimate of $2.38 billion for the first quarter.
Michael Ward, chairman, president and chief executive officer of CSX, said, "CSX drove strong efficiencies in its operations and produced outstanding results as the economy continued to recover."
Revenue from rail segment rose 10% to $2.17 billion, while intermodal revenue grew 20% to $323 million over a year earlier.
Total volume for the first quarter increased 5% to 1.49 million units from 1.42 million units in the previous year quarter.
Total merchandise volume rose 7% to 539 thousand units, and revenue per unit was up 4% to $2,223 for the first quarter, due to higher demand from the automotive and consumer goods markets.
Total coal volume declined 13% to 373 thousand units, due to lower shipments to utility customers as a result of continued high stockpile levels. However, revenue per unit grew 14% to $1,973 over a year ago, driven by improved yield, longer length of haul, and higher fuel recovery.
Automotive volume soared 64% to 74 thousand units, and revenue per unit rose 9% to $2,297 for the first quarter, due to a significant increase in North American light vehicle production driven by an increase in automotive sales.
Total rail volume grew slightly by 1% to 986 thousand units, and revenue per unit rose 9% to $2,199 from the prior year quarter.
Total intermodal volume increased 14% year-over-year to 500 thousand units, and revenue per unit rose 5% to $646 over a year earlier.
Total expense for the first quarter rose 8% to $1.86 billion from $1.73 billion in the prior year quarter.
CSX said it has invested about $5 billion in its network over the past three years, and is investing another $1.7 billion in 2010.
In an April 7 research note, FBR Capital Markets initiated coverage of CSX Corp stock with "Outperform" rating. While rail stocks have shown remarkable resilience, posting a ninth consecutive year of outperformance relative to the S&P 500 in 2009, the analyst believes the reality of significantly higher incremental margins has only begun to set in and is likely to lead to higher full-year 2010 EPS results than the consensus currently forecasts.
Among others in the industry, Norfolk Southern Corp. (NSC) is scheduled to release its first-quarter financial results on April 27. Analysts project earnings of $0.66 per share on revenue of $2.10 billion for the quarter, higher than prior year's earnings of $0.47 per share and revenues of $1.94 billion. In its fourth quarter, the transportation services provider reported a decline in profit at $307 million or $0.82 per share, reflecting lower revenues across segments as a result of the decline in traffic volumes.
Another peer, Union Pacific Corp. (UNP) is slated to release first-quarter results on April 22. Analysts project earnings of $0.92 per share on revenues of $3.78 billion for the quarter, higher than prior year's earnings and revenues of $0.72 per share and $3.42 billion, respectively. In its fourth quarter, Omaha, Nebraska-based Union Pacific reported a 17% decline in profit to $551 million or $1.08 per share and 12% decline in revenue to $3.75 billion.
CSX closed Tuesday's regular trading at $53.28, up 40 cents, on a volume of 5.30 million shares. In after-hours, the share further gained 51 cents. The stock has been moving in a range of $26.72 - $53.47 for the past 52 weeks, with an average daily volume of about 4.22 million shares for the past three months.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.