CSX Corporation has announced first quarter 2015 financial results. It reported revenue of $3.03bn, an increase of 0.50% year-on-year. The company also recorded operating income of $843m, an increase of 14.07% over Q1 2014. Accordingly CSX’s operating margin stood at 27.85%.
Revenue growth in the quarter was driven by growth across many of CSX’s markets and an improved pricing environment, partially offset by the impact of low natural gas prices, lower fuel recoveries and the strong US dollar. The benefit of lower fuel prices and cost-saving initiatives more than offset higher inflation and volume related costs in the quarter and led to the improved operating result.
“In this dynamic economic and business environment, CSX’s core earnings remain strong and we are continuing our drive to provide excellent service for our customers and value for our shareholders,” said Michael Ward, Chairman and Chief Executive Officer of CSX Coporation.
The company also announced that a $2bn share repurchase programme is expected to be completed over the next 24 months. This follows the completion of CSX’s previous repurchase plan, during which the company bought back $1bn worth of shares.
