CSX Corporation has announced its financial results for the third quarter ended September 26, 2014. It reported revenue of $3.21bn, which represented an increase of 8% over the prior comparable period of 2013. The company also reported operating income of $976m, a rise of 16% year-on-year. Accordingly CSX’s operating margin stood at 30.30%.
This performance was supported by volume increases of 7%, with broad-based growth across nearly all markets CSX serves. It was matched by bottom line net earnings of $509m, up 11.87% over Q3 2014.
“As the [US] economy continues to expand, the company’s record third-quarter results are built on the foundation of CSX’s network reach, sustainable growth opportunities, and the efforts of our 31,000 employees,” said Michael Ward, President, Chairman and Chief Executive Officer of CSX Corporation. “At the same time, we are focused on the execution of our core strategy. That means enhancing our ability to grow faster than the economy, price above inflation, make strategic investments and produce ever more efficient operations to continue delivering superior shareholder value.”
The improved revenue result was largely due to rising volumes. The company stated that this was evidence of CSX’s ability to leverage the continued economic momentum that is driving strength across nearly all markets CSX serves, coupled with secular growth trends in the intermodal and energy markets.
The increase in operating income was attributed to the high level of demand and operations that remained stable against the prior comparable period.
On the strength of this performance, CSX expects to sustain double-digit earnings growth and margin expansion in 2015, and continues to target a mid-60s operating ratio longer term.
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