(The Associated Press circulated the following story by Samantha Bomkamp on October 14.)
NEW YORK — CSX Corp. said Tuesday its third-quarter earnings fell 6 percent, but still beat Wall Street’s expectations. The freight railroad operator also said it’s now more cautious about its outlook for full-year earnings.
The company reported net earnings of $382 million, or 94 cents per share, compared with $407 million, or 91 cents per share, in the year-ago quarter.
Excluding a one-time gain in the prior-year period, the Jacksonville, Fla.-based company’s earnings from continuing operations rose 29 percent to $382 million, or 94 cents per share, compared with $297 million, or 67 cents per share, in the same period a year ago.
Revenue rose 18 percent to $2.96 billion. Revenue from nine out of the 10 groups of commodities that the company hauls grew from the same period a year ago, led by coal, grain, ethanol and metals.
Improving efficiency and lower fuel prices also drove the better results in the quarter and help offset the impact of damage from Hurricanes Ike and Gustav, CSX said.
Analysts were expecting 93 cents per share on revenue of $2.91 billion, according to a poll by Thomson Reuters.
CSX is now targeting the low end of its 2008 forecast of $3.65 to $3.75 per share, citing current economic conditions. But the railroad maintained its earnings per share growth target of 20 to 25 percent annually through 2010.
The company also said it has strong liquidity and access to credit. It expects free cash flow of about $1 billion this year.