Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
CSX railroad's 4Q profit slips on weak coal demand
Tuesday - 1/22/2013, 6:25pm EST
AP Business Writer
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
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)