OMAHA, Neb. (AP) — Fewer shipping container deliveries this spring slowed railroad CSX's second-quarter profit and offset a sharp increase in shipments of automobiles.
CSX said Thursday that it earned $996 million, or 49 cents per share, during the second quarter. That's down 15% from a year ago when the Jacksonville, Florida-based railroad's results were helped by a $122 million land sale. Last year, CSX reported earnings of $1.18 billion, or 54 cents per share.
That was in line with what analysts surveyed by FactSet Research expected.
The total number of shipments CSX delivered slipped 3% in the quarter as it handled 10% fewer intermodal shipping containers. But a 21% jump in automotive shipments provided a meaningful boost to the railroad.
CSX's revenue declined 3% to $3.7 billion as the decline in diesel prices generated smaller fuel surcharges for the railroad. The revenue was just below the $3.73 billion that analysts predicted.
CEO Joe Hinrichs said the railroad's performance continued to improve in the quarter, which is helping attract new business. CSX's trains were moving at an average speed of 17.7 mph during the quarter — well above the 15.3 mph speed the railroad reported a year ago.
CSX is one of the nation’s largest railroads, and operates more than 20,000 miles (32,000 kilometers) of track in 26 Eastern states and two Canadian provinces.
