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CSX quarterly profit up 4.5pc to US$553 million as revenue falls 4.5pc
THE CSX railway posted a 4.5 per cent year-on-year second quarter net profit increase to US$553 million, drawn on revenues of $3.06 billion, which fell 4.5 per cent.
The Jacksonville-based railway said it expects to deliver mid to high single-digit percentage growth in 2015, but added "the upper end of that range has become more challenging given the current energy environment".
CSX results beat forecasts as higher productivity and lower fuel prices offset a drop in coal volumes that took a bite out of revenue, Reuters reported.
Like all the major railways, CSX has been pummelled by a decline in coal volumes as power plants switch natural gas just as coal exports have been made less attractive by a strong dollar.
Coal revenue for the quarter fell 15 per cent, contributing to an overall revenues decline of six per cent. The company said it expects coal volume to fall 10 per cent in 2015.
But CSX was saved by a 37 per cent lower fuel bill of $263 million for the quarter, which kept overall expenses down nine per cent.
The Jacksonville-based railway said it expects to deliver mid to high single-digit percentage growth in 2015, but added "the upper end of that range has become more challenging given the current energy environment".
CSX results beat forecasts as higher productivity and lower fuel prices offset a drop in coal volumes that took a bite out of revenue, Reuters reported.
Like all the major railways, CSX has been pummelled by a decline in coal volumes as power plants switch natural gas just as coal exports have been made less attractive by a strong dollar.
Coal revenue for the quarter fell 15 per cent, contributing to an overall revenues decline of six per cent. The company said it expects coal volume to fall 10 per cent in 2015.
But CSX was saved by a 37 per cent lower fuel bill of $263 million for the quarter, which kept overall expenses down nine per cent.
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