Railroad operator CSX posts quarterly results in line with expectations

Reuters
24 Jan
Railroad operator CSX posts quarterly results in line with expectations

Jan 23 (Reuters) - CSX CSX.O reported fourth-quarter profit and revenue in line with Wall Street estimates on Thursday as a decline in coal revenue offset gains from volume growth in its intermodal segment.

Intermodal shipping, which involves two or more means of transportation for goods, saw a 4% rise in volume during the fourth quarter.

Meanwhile, quarterly volume in the coal segment fell 7% and revenue was down 20% compared to last year.

Demand for coal, which has been hampered as consumers switch to cheap natural gas stockpiles for energy, is expected to decline further.

CSX said that it had also been hurt by a fall in fuel surcharge, an added fee that the company collected from customers to account for fluctuations in the price of fuel used to operate trains.

The company reported operating revenue of $3.54 billion in the quarter ended Dec. 31, roughly meeting analysts' estimate of $3.58 billion.

Excluding items, it reported a profit of 42 cents per share, down 6.7% from last year but in line with analysts' estimates.

International volume growth in the intermodal segment will moderate in 2025 after a robust 2024, the company said in its investor presentation.

The company said its international shipping partners were optimistic, but also cautious on matters related to tariffs amid policy uncertainty.

However, the railroad operator is upbeat about domestic intermodal shipping, expecting to benefit from services, new customer alignments and modal conversions.

Shares of the Jacksonville, Florida-based company fell 2.6% in aftermarket trading.

(Reporting by Anshuman Tripathy and Aishwarya Jain in Bengaluru; Editing by Alan Barona)

((Aishwarya.Jain@thomsonreuters.com))

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