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CSX’s revenue and benefits decreased in the fourth quarter, as the growth in freight and intermodal traffic was not enough to overcome the steep falls of the surcharge revenue of coal and fuel.
The impact of a pair of hurricanes, both affected the traffic to Florida, the highest railway volume state, also weighed on CSX (NYSE: Csx) Operations, service metrics and quarterly results.
“In general, we executed well for a difficult period. However, we are not satisfied with these results,” the CEO Joe Hinrichs said to the analysts and investors on the railway call call on Thursday. “We have a clear view of what we want to achieve at CSX … and we are committed to fulfilling this vision for the benefit of our customers, our employees and our shareholders.”
The fourth quarter’s operating income decreased by 16%, in part due to a position for deterioration from the trade fund of $ 108 million involved in their Quality Carriers chemical transport company. Without impairment, the exploitation result dropped by 8% during the quarter. Income decreased by 4%, up to $ 3.530 million. The profit by action decreased by 16%, to 38 cents.
The operating ratio, or operating expenses as a percentage of income, was 68.7 for the quarter, 4.4 points more than a year ago.
CSX maintains the three -year growth prospects that he presented to his investors’ day in November, but executives warned that the railway will face opposite winds worth $ 350 million this year due to reducing revenue reduction. Surcharge of coal and export fuel, mainly in the first half of the year.
This year CSX will also absorb $ 10 million at higher operating costs per month related to the construction of the cleaning of the Howard Street tunnel in Baltimore and the reconstruction of the Blue Ridge subdivision.
CSX has begun to divert traffic to Norfolk Southern before the expected date of beginning of February 1 of the Howard Street project, which will allow the railway to pass for the first time intermodal double -stack trains through the Middle Atlantic . The long -awaited project should be completed by the end of the year.
The Blue Ridge Sub, which crosses the steep mountains of western North Carolina and East Tennessee, suffered damage worth $ 400 million for Hurricane Helene. Traffic is being diverted, accumulating out of route and additional costs of the crew, while the line is rebuilt.
During the quarter, the global volume increased by 2%, driven by an increase of 4% in the intermodal volume. The volume of goods remained stable, while coal traffic sank by 7%.
The prospects for this year include a global growth of the volume of 3% to 6%, driven by intermodal and goods traffic.
