(The following article by Padraic Cassidy was posted on the CBS MarketWatch website on October 28.)
NEW YORK — Shares of railroad CSX Corp. faltered in early trading Thursday but then finished higher after reporting third-quarter earnings before items fell about 6 percent.
Excluding quarterly charges in 2004 for the Conrail spin-off and in 2003 for restructuring, earnings were $109 million in the third quarter, or 50 cents per share, compared with $116 million, or 54 cents per share in 2003.
The average analyst estimate from Thomson First Call was for earnings of 52 cents per share.
Stock in CSX Corp. (CSX), based in Jacksonville, Fla., fell in early trading but closed up 11 cents higher to $36.02.
The dividing up of Conrail assets contributed $14 million, or 7 cents, a share, to CSX’s net income.
Revenue rose more than 5 percent in the quarter to $1.98 billion from $1.88 billion.
Expenses fell 13 percent to $1.72 billion from $1.98 billion.
CSX’s operating ratio of 86.7 percent was below what J.P. Morgan analyst Gregory Burns had forecast.
“While CSX continues to post revenue gains, a failure to solve operational issues and reduce exposure to fuel-price increases is continuing to hinder margin expansion,” Burns said in a research note.
In August, CSX and Norfolk Southern Corp. (NSC) completed a reorganization of jointly owned routes and tracks operated by Conrail.