RICHMOND, Va. — Led by strong rail and intermodal earnings, CSX Corporation today reported second-quarter net income of $135 million or 63 cents per share, up 24% from $108 million or 51 cents a year ago. Total revenues were $2.07 billion versus $2.06 billion.
John W. Snow, chairman and chief executive officer said: “We’re starting to see some signs of economic recovery influencing demand for rail transportation. In addition, our sharp, sustained focus on improving service is bringing us new business coming off the highways and enabling us to increase prices in selected markets. Our auto, merchandise and intermodal revenues are all up for the quarter, more than offsetting continued weakness in the coal sector due to prevailing, higher-than-normal utility stockpiles.”
Rail and intermodal operating income totaled $293 million compared to $242 million in the second quarter of 2001. Current quarter results included approximately $11 million in operating income from net settlements of contract disputes. This had a positive impact in the quarter on net income of $7 million or three cents per share. Revenues were $1.83 billion, flat with a year ago.
Michael J. Ward, CSX president, noted: “Even though combined rail and intermodal volumes were up slightly, expenses were down $44 million from a year ago. Lower fuel costs were a factor, but much of our progress on the cost side is coming from running a safer, better, more reliable railroad for our customers.”
Earnings from the company’s marine businesses – CSX Lines and CSX World Terminals – were about the same as a year ago. The “Other Income” category totaled $4 million for the 2002 second quarter compared to $37 million a year ago, which included a significant real estate transaction of $32 million. Interest expense was $116 million, down from $135 million in the second quarter of 2001.
CSX Corporation, based in Richmond, Va., operates the largest rail network in the eastern half of the United States. It also provides intermodal, domestic container shipping and global container terminal operations. More information about the company is available at its Internet address: www.csx.com.