CSX hauled in 15% more profit in the first quarter as the railroad's higher rates and fuel surcharges offset its higher costs
ByJOSH FUNK AP Business Writer
OMAHA, Neb. -- CSX hauled in 15% more profit in the first quarter as the railroad's higher rates and fuel surcharges offset its higher costs.
The Jacksonville, Florida-based railroad said Thursday that it earned $987 million, or 48 cents per share. That's up from $859 million, or 39 cents per share, a year ago.
That topped Wall Street expectations of 43 cents per share, according to FactSet.
CEO Joe Hinrichs said the railroad's service improved in the quarter as CSX cut down on the number of delays many shippers had complained about over the past year. But volume was down about 1%.
Safety has been a key focus for railroads ever since a fiery Norfolk Southern derailment in Ohio in February. Hinrichs emphasized that railroads are very safe compared to other forms of transportation, but he vowed CSX wouldn't be complacent about safety.
CSX officials highlighted some of the steps the railroad is taking to improve safety, including installing 53 more trackside detectors to help find equipment problems before they cause a derailment. After that, CSX will have hot-bearing detectors 14.9 miles (24 kilometers) apart on average across its network.
CSX's revenue grew 9% to $3.71 billion in the quarter, ahead of analysts' expectations of $3.58 billion.
The railroad's expenses were up about 5% to $2.24 billion as the cost of fuel and wages continued to grow, with CSX hiring more employees and starting paying its employees the raises it promised during last fall's contract fight.
The railroad has nearly 1,700 more employees for a total of 22,634 now after hiring aggressively over the past year as part of its efforts to improve service.
