CSX corporation has announced its 2016 financial results, reporting revenue of $11.1bn, a decrease of 6.3% on the previous year. This led to operating income of $3.4bn, down on the previous year by 5.4%.
CSX also announced its quarterly results. Revenue of $3bn was up 26.9% on Q3, but net earnings of $458m were down 1.7%. The fourth quarter benefitted from a property sale and an extra accounting week in the fiscal reporting calendar.
CSX attributed the results to low global commodity prices and the strength of the US dollar. In addition, volume declined 5% over the year with a 21% decline in its coal business.
Michael Ward, Chairman and CEO of CSX, said: “In an environment where the company lost almost $470m of coal revenue and experienced weakness across most of its markets, CSX delivered nearly $430m of productivity savings in 2016.”
Last year CSX announced its plans to consolidate operating divisions and reduce structural costs as a result of declining revenues in the coal industry.