OMAHA, Neb. (AP) — Railroad operator CSX Corp. said continued weak coal demand contributed to a 3 percent decline in fourth-quarter net income. The results still beat Wall Street expectations as other sectors improved.
The Jacksonville, Fla.-based railroad on Tuesday reported net income of $443 million, or 43 cents per share, in the last three months of 2012. That’s down from $457 million, or 43 cents per share, in the previous year’s quarter.
CSX said its revenue declined 2 percent to $2.9 billion from $2.95 billion a year earlier. It says declines in coal shipments more than offset gains in intermodal and merchandise shipments.
Analysts surveyed by FactSet expected CSX to report earnings of 39 cents per share on revenue of $2.84 billion.
CSX stock was trading up 1.6 percent, or 34 cents, at $21.15 in after-hours trading Tuesday after losing 10 cents in the regular trading session.
The weak coal demand that began with last year’s mild winter and cheap natural gas prices continued to create challenges for CSX in the quarter.
Coal revenue fell 18 percent to $747 million in the fourth quarter. The increases in automotive, intermodal and crude oil shipments weren’t quite enough to offset coal’s decline.
CSX Chairman, CEO and president Michael Ward praised the results.
“CSX continues to demonstrate the underlying strength of its business model, the ability to respond quickly to significant events in the marketplace, and a steadfast focus on creating substantial shareholder value over the long term,” Ward said.
The other major freight railroad in the eastern United States, Norfolk Southern Corp., also reported dealing with coal challenges. Norfolk Southern said its fourth-quarter profit fell 14 percent to $413 million, or $1.30 per share, because its coal revenue dropped 23 percent. That’s down from $480 million, or $1.42 per share, a year earlier.
For all of 2012, CSX reported net income of $1.86 billion, or $1.79 per share, on $11.8 billion revenue. That’s 2 percent higher than the previous year’s $1.82 billion net income, or $1.67 per share, on $11.7 billion revenue.
CSX operates over 21,000 miles of track in 23 eastern states and two Canadian provinces. CSX will hold a conference call with investors Wednesday morning.
Union Pacific Corp., the biggest railroad in the U.S., will release its fourth-quarter results on Thursday.
Follow Josh Funk online at www.twitter.com/funkwrite
CSX Corp.: www.csx.com
More Related Stories
- Mississippi could begin prosecuting women for miscarriages
- Teenage girl claims she was beaten up for looking like Taylor Swift
- UK Military: London attack victim was a "model soldier"
- Billionaire hedge funder: Babies, breast-feeding "kill" focus, keep women from succeeding
- "Bookless library" set to open in Texas
- 2 more arrested in London attacks
- Glenn Beck: CNN interview with atheist tornado survivor was a setup!
- Incoming BBC news director on journalism gender gap: "We can do better"
- Illegal construction, shoddy materials at fault in Bangladesh factory disaster
- Ahead of Obama's speech, U.S. acknowledges four American drone killings
- Must-see morning clip: Bill O'Reilly visits "The Daily Show"
- Lawsuit alleges anti-gay hiring practices at ExxonMobil
- Boy Scouts poised to vote, still greatly divided on gay youth
- House supporters of KXL received $56m from fossil fuel industry
- 80-year-old becomes oldest to climb Mount Everest
- Before FBI shooting man implicated self, Tsarnaev in triple murder
- Paul McCartney backs Pussy Riot
- UK emergency committee convenes after attack
- Brave scout leader tried to reason with London attackers
- If Alex Pareene were a cable news executive...
- El Salvador court delays ruling on abortion case while woman's life hangs in the balance
Featured Slide Shows
The week in 10 picsclose X
- 1 of 11
Credit: AP/LM Otero
Credit: AP/Matt Rourke
Credit: AP/Jenny Aicher
Credit: AP/Molly Riley
Credit: AP/J. Scott Applewhite
Credit: AP/Carolyn Kaster
Credit: AP/Las Vegas Review-Journal/Jeff Scheid
Credit: AP/NASA/Chris Hadfield
Credit: AP/Jacquelyn Martin
Credit: AP/The Duluth News-Tribune/Clint Austin
Recent Slide Shows
- 1 of 11