(Dow Jones Newswires circulated the following story by Bob Sechler on April 14, 2010.)
NEW YORK — CSX Corp. (CSX) executives said Wednesday that with economic recovery picking up steam, they expect “strong, double-digit” profit growth for the railroad in 2010.
Chief Executive Michael Ward described himself as “encouraged” by the improving economy. He was speaking during a post-earnings conference call with analysts.
“The industrial economy continues to gain momentum,” Ward said.
The railroad said it expects volume and revenue growth in most of its markets in the second quarter compared with the year-ago period, after a 5% overall volume increase in the first quarter.
CSX reiterated that it even expects coal volumes to finish higher in 2010 compared to 2009, despite a 13% slump in the first quarter. High coal stockpiles at U.S. utilities have been crimping coal shipments, although CSX said stockpiles have been cut in half and demand is improving. It also said it expects continued strength in industrial and export markets.
Still, CSX stuck by a previous forecast for overall core price increases to average 4% to 5% this year, well below a core increase above 6% last year. CSX said the 2010 core increase will still outpace inflation.
Late Tuesday, CSX reported first-quarter profit of $306 million, or 78 cents a share, up 24% from $246 million, or 62 cents a share, a year earlier. Year-ago results included an $8 million loss from discontinued operations. Revenue rose 11% to nearly $2.5 billion.