CSX Expects 3rd Quarter Earnings to Fall

A CSX executive said this week that the railroad expects its third-quarter earnings per share to decline from what it posted during the second quarter.

CSX logo 1Executive Vice President and Chief Financial Officer Frank Lonegro said this week that volume will decline by single digits year-over-year.

Lonegro spoke during the Cowen and Company’s annual Global Transportation Conference in Boston.

“Third quarter earnings per share are expected to decline slightly from second quarter levels, based on high single-digit volume reductions that are partially offset by improving efficiency benefits and strong pricing gains that reflect a service product that meets and exceeds customer expectations,” Lonegro, said in a statement.

An improving global market for coal is expected to result in some better results for CSX coal traffic.

Lonegro noted that coal traffic has posted some modest improvement in recent months leading company officials to project that for the year coal tonnage will decline between 20 percent and 25 percent.
CSX plans to focus on high-density routes serving merchandise and intermodal growth.

As part of its “CSX of Tomorrow” strategy, it is extending sidings on key routes and running longer trains.

Lonegro said CSX also is investing in intermodal terminals and double-stack clearance projects to capture a greater share of the 9 million truckload market in the East.

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