Wednesday, October 14, 2015

CSX reports profits despite coal losses

Despite continuing weakness in its coal deliveries, CSX yesterday reported record third-quarter earnings of 52 cents a share, up from 51 cents a year ago. Net earnings for the quarter were $507 million dollars, down from $509 million a year ago. The increased profitability on reduced earnings is the product of low fuel prices, cost reductions and efficiency initiatives. Looking ahead, the company expects earnings-per-share growth in the mid-single digits, despite a forecast decline in coal revenue of $450 million for the year, and continue declines into 2016. CSX made its financial report after the stock market closed yesterday. CSX stock fell 66 cents in Tuesday’s trading, to $27.71. In after-hours trading, after the announcement, the stock was up 29 cents.