CSX said this week that its 2016 fourth quarter net earnings fell by 2 percent to $458 million, or 49 cents per share.
Fourth quarter 2016 revenue was up by 9 percent to $3 billion compared with $2.78 billion a year ago.
CSX said that factors affecting its fourth quarter performance included an operating property sale and a debt refinancing charge, both of which were $0.08 per share and offset each other in the quarter.
The final quarter of 2016 also included an additional accounting week resulting from the company’s 52/53 week fiscal reporting calendar, which benefited earnings per share by $0.03 per share.
CSX said expenses increased 2 percent while operating income was $1 billion, which included the $115 million gain from the property sale and the $62 million benefit from the extra week.
During 2016, “the industry continued to face headwinds from low global commodity prices and strength of the U.S. dollar,” CSX said in a news release
For CSX this meant that it generated $11.1 billion in revenue as volume declined 5 percent overall with a 21 percent decline in its coal traffic.
Earning per share for 2016 were $1.81, operating income was $3.4 billion and the railroad posted an operating ratio of 69.4 percent.
“In an environment where the company lost almost $470 million of coal revenue and experienced weakness across most of its markets, CSX delivered nearly $430 million of productivity savings in 2016, while improving customer service,” said CEO Michael J. Ward in a statement. “With business conditions gradually improving and the ongoing transformation into the CSX of Tomorrow, we will continue to deliver sustainable shareholder value.”