(CSX issued the following news release on July 28.)
JACKSONVILLE, Fla. — CSX Corporation today reported its financial results for the second quarter of 2004.
– Second-quarter net earnings were $119 million, or 55 cents per share, including a $9 million, or 5 cents per share, after-tax charge relating to company’s management restructuring;
– Consolidated operating income was $291 million, up $6 million versus 2003;
– Second-quarter Surface Transportation, including rail and intermodal units, revenue of $1.99 billion was an all-time high on record volume, increasing $108 million quarter over quarter;
– In the quarter, merchandise revenue was up 7% and coal revenue was up 6%, on strong yield and volume
Michael J. Ward, CSX chairman and chief executive officer said, “This is the third quarter in a row that we’ve delivered record-setting Surface Transportation revenue, reflecting strong economic growth and high transportation demand.
“We are taking actions to improve our service and deliver more to the bottom line. Our management restructuring and organizational streamlining is now complete. We’re adding operating resources to meet continued, expected demand. Our network redesign is underway to improve efficiency and reduce car miles and terminal handlings. Together, these efforts will improve the productivity of our operations, while generating the service our customers deserve and the financial results each of us expect.”
For the second quarter, CSX reported net earnings of $119 million, or 55 cents per share, versus $127 million, or 59 cents per share in 2003. The second quarter of 2004 included an after-tax charge of $9 million, or 5 cents per share, related to the Company’s management restructuring initiatives. Excluding the current restructuring charge, second quarter 2004 net earnings would have been $128 million, or 60 cents per share.
Surface Transportation operating income was $280 million, up $21 million from the prior-year quarter. Surface Transportation revenue of $1.99 billion drove the increase in operating income. On a consolidated basis, operating revenue was $2.03 billion versus $1.94 billion a year ago.
Ward added, “Looking ahead, we expect to see continued strong volumes across most of our markets, in line with economic growth projections for the balance of the year.
“In addition, the company’s continued roll-out of our new operating plan will drive improvement in our service quality and an increase in capacity through increased asset utilization and improved network fluidity.”
CSX Corporation, based in Jacksonville, Fla., operates one of the largest rail networks in the United States and also provides intermodal and international terminal management services. More information about the company is available at its Internet address: http://www.csx.com.