(CSX issued the following news release on October 17.)
JACKSONVILLE, Fla. — CSX Corporation today reported third quarter 2006 net earnings of $328 million, or 71 cents per share. Earnings in the quarter included a 17 cent per-share benefit from Hurricane Katrina insurance recoveries and the resolution of certain income tax matters. Excluding these items, earnings were 54 cents per share, up 50 percent from 36 cents per share reported in the same quarter of 2005.
“Improved service, growing volumes and continued strong pricing drove our strong third quarter financial results,” said Michael Ward, chairman and CEO of CSX Corporation. “We continue to invest in strategic capacity and create opportunities for long-term growth.”
The company’s Surface Transportation businesses posted record third quarter revenues of $2.4 billion, a 14 percent increase from the third quarter last year. The increase was driven by improved pricing and volume growth. Yields increased 12 percent with improvements across all markets. Volumes grew nearly two percent, led by strength in agriculture, coal and intermodal volumes, which more than offset softness in phosphates and fertilizers, automotive and forest products.
These top-line improvements, combined with continued momentum in operations, generated record third quarter Surface Transportation operating income of $489 million, including the $15 million benefit from insurance recoveries. Excluding the insurance recoveries, operating income was $474 million, a 31 percent increase over the $361 million reported in the third quarter of 2005.
“We expect demand for rail and intermodal transportation services to remain strong,” said Ward. “With improved service on our extensive network, CSX is well positioned for the future.”
CSX Corporation, based in Jacksonville, Fla., is a leading transportation company providing rail, intermodal and rail-to-truck transload services. The company’s transportation network spans approximately 21,000 miles with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports.