CSX profit jumps 36 percent

US railroad CSX Corp’s profit rose 36 percent in the second quarter, beating analysts' expectations, as volume improved across the varied markets the company serves, reported Reuters.

CSX said net income totalled US$414 million compared with $305 million in the same period last year.

Not counting discontinued operations, net income rose 47 percent.
Jacksonville, Florida-based CSX said revenue in the second quarter increased 22 percent from the prior year to nearly $2.7 billion.

CSX said automotive volume jumped 63 percent due to an increase in North American light vehicle production driven by higher sales and lower inventory levels. A rebounding steel market helped fuel a 44 percent gain in CSX's metals shipment volume.

And the railroad's chemical business volume rose 10 percent year-on-year in a reflection of improved demand for intermediate products used in the automotive and consumer goods markets.

The company's coal business volume lagged other markets, declining four percent, but coal-related revenue rose 12 percent. CSX said revenue per unit improved by longer hauling lengths.

Export shipments were higher due to greater Asian demand, while domestic utility customer shipments were lower because of continuing high stockpiles of coal.
(Source:www.cargonewsasia.com)