(CSX issued the following news release on October 28.)
JACKSONVILLE, Fla. — CSX Corporation (NYSE: CSX – News) today reported its financial results for the third quarter of 2004.
* Net earnings were $123 million, or 57 cents per share, including a net gain on the Conrail spin-off transaction;
* Consolidated operating income was $264 million;
* Surface Transportation revenue, including rail and intermodal, increased $115 million to $1.94 billion;
* In the quarter, merchandise revenue was up 6% and coal revenue was up 10%.
“This is the third consecutive quarter in which CSX delivered consistent, continuous improvement in year-over-year Surface Transportation operating income,” said Michael J. Ward, CSX chairman, president, and chief executive officer. “In addition, it is the tenth consecutive quarter that the company has demonstrated revenue growth, reflecting the strength in the economy and the importance of rail transportation.”
Ward added, “We are encouraged by these results and remain committed to further improving CSX’s service and costs. This will allow CSX to capitalize even more on both growth and yield.”
Third-quarter 2004 net earnings include a favorable impact of $14 million, or 7 cents per share, associated with the net gain from the Conrail spin-off transaction slightly offset by management restructuring charges. The 2003 third quarter had a net loss of $103 million, or 48 cents per share, including after-tax charges of $219 million, or $1.02 per share, reflecting various expenses taken in that quarter for occupational, arbitration settlements and management restructuring. Excluding these 2003 and 2004 charges, CSX’s consolidated 2004 third-quarter net earnings would have been $109 million, or 50 cents per share, versus $116 million, or 54 cents per share, in 2003. Improvements in Surface Transportation operating income were offset by a decline in non-core earnings.
Surface Transportation operating income for the third quarter 2004 was $247 million versus a loss of $16 million in the prior year quarter. This year’s third quarter includes a management restructuring charge of $3 million and 2003 includes the pretax effect of the occupational and management restructuring charges of $239 million. Adjusting for these charges in both years, operating income at our Surface Transportation business would have increased $27 million to $250 million in third quarter 2004, reflecting an increase of 12 percent.
CSX Corporation, based in Jacksonville, Fla., owns the largest rail network in the eastern United States. CSX Transportation Inc. and its 34,000 employees provide rail transportation services over a 23,000 route-mile network in 23 states, the District of Columbia and two Canadian provinces. CSX Corporation also provides intermodal and global container terminal operations through other subsidiaries.