(CSX issued the following news release on January 27.)
JACKSONVILLE, Fla. — CSX Corporation today reported fourth quarter net income of $123 million, or 57 cents per share, including a net after-tax restructuring charge of $7 million or 4 cents per share. Excluding this charge, fourth quarter net income was $130 million, or 61 cents per share, versus $137 million or 64 cents, a year ago.
Surface Transportation revenue, which includes CSX’s rail and intermodal units, was $1.90 billion versus $1.82 billion a year ago. The company’s merchandise markets all showed strong year-over-year growth with revenue and volume up 6%. Coal and Intermodal volumes also increased year over year. Total CSX revenues for the quarter were $1.95 billion compared to $2.06 billion in 2002. The prior year includes revenue of $189 million from an affiliated company conveyed earlier this year.
“CSX saw tremendous revenue growth in the fourth quarter and throughout 2003. This growth reflects a strengthening economy, aggressive efforts to win modal conversions and innovative service products that better adapt to customer needs,” said Michael J. Ward, CSX Corporation chairman and chief executive officer. “In addition, we strengthened our balance sheet through a reduced debt-to-equity ratio and free cash flow in excess of $300 million or 80% increase year over year.”
“However, because these positive trends were offset by continued high operational costs, we remain keenly focused on improving our cost structure and restoring our higher service levels that we’ve seen in the recent past,” Ward said.
Operating income for Surface Transportation was $239 million. Excluding the net restructuring charge mentioned above operating income was $251 million for the quarter, down from $281 million in the same quarter last year. On a consolidated basis excluding the net restructuring charge, operating income was $274 million versus $318 million in 2002.