CSX Corporation has announced its Q4 and 2017 full year earnings. Revenues were down 5.7% to $2,863m in the quarter, although this was partly due to one week being absent in 4Q17. However, its operating result improved by 11.7% to $1,121m.
For the full year, revenues grew 2.9% to $11,408m. CSX produced more revenue from chemicals, minerals, fertilizers, intermodal and notably coal in 2017. Its operating result was 8.2% higher at $7,741m. This can largely be attributed to a $245m drop in labour and fringe expenses. Unaudited net earnings stand at $5,471m, up from $1,714m a year earlier. This can largely be attributed to the 2017 Tax Cuts and Jobs Act.
CSX saw adjusted low single digit volume increases in Q4 in Chemicals (+3%), Minerals (+2%), Fertilizers (+2%), Forest Products (+1%), Coal (+4%) and Intermodal (+4%). There were volume decreases in automotive (-10%), metals and equipment (-3%), agriculture & food products (-5%) and other items (-4%).
Volumes of each product segment (in CSX’s non-GAAP comparable basis) decreased in 2017 apart from coal and intermodal which increased.
James M. Foote, president and chief executive officer, commented: “CSX’s performance continued to strengthen in the fourth quarter, building upon the scheduled railroading model that was instituted by Hunter Harrison”.
Source: CSX Corporation
