The income and profits of CSX decreased in the fourth quarter, the growth in goods traffic and intermodal not being sufficient to compensate for the sharp drop in income related to coal and fuel supplements.
The impact of two hurricanes – both of which have affected traffic at destination and from Florida, the state where rail traffic is the most important – has also weighed on CSX (NYSE: CSX) Operations, service measures and quarterly results.
“Overall, we performed well in a difficult period. However, we are not satisfied with these results, “Director General Joe Hinrichs told analysts and investors on Thursday at the Railway Results Conference. “We have a clear vision of what we want to achieve at CSX … and we are committed to concretizing this vision for the benefit of our customers, our employees and our shareholders. »»
The operating profit for the fourth quarter decreased by 16 %, partly due to a burden to depreciation of Goodwill of $ 108 million involving its quality chemical products transport company. Except for depreciation, the operating profit decreased by 8 % for the quarter. Income decreased by 4 %to 3.53 billion dollars. Action profit decreased by 16 %, to 38 cents.
The operating ratio, or operating expenses as a percentage of turnover, was 68.7 for the quarter, 4.4 points more than a year ago.
CSX maintains the growth prospects over three years that he presented in investor day in November, but the leaders warned that the railway would face this year with winds of a value of $ 350 million Due to the drop in coal export income and fuel supplements, mainly during the first half. year.
This year, CSX will also absorb $ 10 million in higher operating costs per month linked to the construction of the release of the Howard Street tunnel in Baltimore and the reconstruction of the Blue Ridge subdivision.
CSX began to divert traffic on Norfolk Southern before the scheduled start date of the Howard Street project, on February 1, which will allow the railway to circulate double-batted intermodal trains through Mid-Atlantic . The long -awaited project should be completed by the end of the year.
The Blue Ridge Sub, which crosses the steep mountains of western North Carolina and East Tennessee, has suffered damage worth $ 400 million due to Hurricane Helene. Traffic is redirected, accumulating off -road kilometers and additional crew costs, while the line is being reconstitated.
For the quarter, the overall volume increased by 2 %, thanks to a 4 % increase in intermodal volume. The volume of goods remained stable, while charcoal traffic has dropped by 7 %.
The prospects for this year include global growth in volumes of 3 to 6 %, driven by intermodal traffic and goods.
