(Reuters issued the following story by Nick Carey on January 22.)
CHICAGO — Railroad CSX Corp. on Tuesday reported a better-than-expected quarterly net profit, citing strong revenue growth and productivity improvements that offset higher fuel prices.
Fourth-quarter net income rose more than 5 percent to $365 million, or 86 cents a share, from $347 million, or 75 cents a share, a year earlier.
Excluding an insurance gain, profit was 85 cents a share. Wall Street analysts had expected 64 cents before one-time items, according to Reuters Estimates.
Excluding insurance recoveries and other one-time items, year-earlier earnings were 57 cents a share.
For the latest quarter, CSX reported surface transportation operating income of $609 million, compared with $505 million a year earlier.
The Jacksonville, Florida-based company reiterated its long-term financial targets of double-digit growth in operating income and earnings per share, plus free cash flow of $800 million to $1 billion before dividends by 2010.
Like most other U.S. railroads, CSX has reported strong results in the past few quarters despite slowing U.S. economic growth, largely because of strong pricing and rail network improvements.
Analysts have questioned how long the railroads’ pricing can continue if the economy weakens further.