(The Associated Press distributed the following article on April 28.)
JACKSONVILLE, Fla. — Railroad giant CSX Corp. reported Wednesday that first-quarter earnings dropped about 70 percent, but the company still beat Wall Street estimates.
In the quarter ended March 26, the nation’s third largest railroad reported net income of $30 million, or 14 cents per share, compared with $99 million, or 46 cents a share, a year ago.
Last year’s figures included a $57 million benefit as result of an accounting change, the company said.
Excluding an after-tax restructuring charge of $37 million, earnings in the latest quarter were 31 cents per share. That beat the average Wall Street estimate of 27 cents a share, according to Thomson First Call.
CSX announced a plan last November to cut 800 to 1,000 nonunion management jobs. CSX has said the changes will save CSX $80 million to $100 million a year, but planned to take restructuring charges.
Revenues were $1.96 billion for the first quarter, compared with $2.02 billion a year ago. The company pointed to strong growth in CSX’s core surface transportation markets, including a 10 percent increase in coal, coke and iron ore.
“We are pleased by the record revenue growth in the first quarter delivered by our Surface Transportation units,” said Michael J. Ward, CSX chairman and chief executive officer.
The company’s shares were up $1.36 to close at $31.73 on the New York Stock Exchange.