CSX Corporation has published its financial results for Q3 2018 posting revenues of $3.13bn. Total revenue grew by 14.1% in comparison to the same period of the previous year where it totalled $2.74bn. The increase was attributable to growth in volumes across all business segments, increases in fuel recovery, a favourable mix, higher supplemental revenue and pricing gains. This was complimented by a 2.1% decrease in expenses resulting in operating income posting significant growth year-on-year of 48.9% to reach a total of $1.84bn.
Volumes for freight transporting merchandise for the business grew 4.9% to total 1.66m units for Q3 2018. All goods, excluding Fertilizers, increased in volumes with the most significant growth coming from Forest Products due to strength in building products as well as e-commerce driven pulpboard demand. Volume declined for Fertilizers due to the closure of a customer facility in late 2017 that previously moved short-haul rail shipments. The Merchandise business segment accounted for 60.4% of total revenue at a figure of $1.89bn which represented a growth of 11.9% in comparison to Q3 2017.
Freight volumes for CSX’s Coal business segment increased 7.3% for the third quarter of 2018 totalling 234,000 units. This was driven by export growth as global supply levels and elevated global benchmark prices supported continued demand for U.S. coal. Consequently, revenues grew by 14.4% to reach a total of $588m.
Domestically, for the Intermodal business segment, volume increased as tight truck supply drove growth with existing customers, which was partially offset by the rationalization of low-density lanes in late 2017. Internationally, volume increases were driven by new customers and strong performance with existing customers, which more than offset losses from the rationalization of low-density lanes in late 2017. Revenue for this business segment grew by 12.1% in comparison to 2017 to total $500m.
Expenses of $1.8bn decreased $39m, year over year, primarily driven by gains from line and real estate sales and reductions in workforce and crew starts as a result of implementing scheduled railroading, partially offset by fuel price increases.
“This quarter highlights the progress towards our transformation as we aim to deliver industry leading service to our customers,” said James M. Foote, President and CEO. “I am proud of our team of hard-working employees who were able to produce these results.”
Source: CSX Corporation
