CSX Said Earnings for Fourth Quarter and Full Year were Solid

CSX Corporation announced its 2018 fourth quarter earnings that reached $466 million, a drop of 5% from its $491 million during the same period in 2017, equal to 48 cents a share compared to 49 cents a share for the prior year or a drop of 2%.

Revenue for the fourth quarter of 2018 was down by 13% as gains in pricing were offset by an impact from lower fuel recovery, a volume decline of 6% and the continued transition in the business mix of the company, said the railroad.

Expenses were down as well by 13% primarily reflecting the lower prices of fuel, lower costs related to volume and gains in efficiency.

Due to this, operating income was lower by 12% end the quarter at $791 million, while its operating ratio was at 71.6% an improvement of 20 basis points.

For the 2018 full year, CSX generated revenue of $11.8 billion, as its growth in automotive, intermodal, and minerals markets was able to offset on a partial basis significant drops in coal.

With this environment, the company delivered $2.00 per share earnings, which were up over 4% from those of 2014, with net earnings of more than $2 billon.

Improving service, alignment of resource and gains in efficiency helped to generate an operating income of close to $3.6 billion and the company’s first full-year sub 70 operating ratio that end 69.7%.

CSX CEO and Chairman Michael Ward said that the railroad has delivered results that were solid for 2018 through balancing gains despite being in a market that was challenged by global impacts from the strong dollar and lower commodity prices.

With negative industrial and global market trends that are projected for all of 2019, earnings for the full year are expected to be down per share in comparison to 2018, said Ward.

He added that CSX would be continuing to work on efficiency, resources as well as service quality to maximize the value for shareholders and to achieve an operating ratio in the mid 60s over the longer term.

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