CSX railroad reported a 2% decrease in second-quarter profit despite a 2% increase in shipment volume, attributed to the Baltimore bridge collapse in March disrupting coal exports. The company's earnings were $963 million, or 49 cents per share, down from last year's $984 million. However, this exceeded analysts' predictions of 48 cents per share.
CSX CEO acknowledged the effective response to the disruptions at the Port of Baltimore, the nation's second-largest coal export port. The company, along with competitor Norfolk Southern, swiftly rerouted shipments to other ports to mitigate the impact of the bridge collapse.
Revenue remained steady at $3.7 billion, slightly surpassing Wall Street estimates, while expenses rose slightly to $2.25 billion due to increased labor costs. Analysts noted CSX's ongoing efforts to enhance operational efficiency and streamline network operations.
CSX has implemented cost-saving measures such as reducing shipment pickups per week and consolidating shorter trains into longer ones. The company anticipates growth in volume and revenue by low-to-mid single digits in the second half of the year, although economic uncertainties persist.
CSX remains vigilant about safety regulations following the NTSB's report on Norfolk Southern's derailment in Ohio. The company advocates for safety measures based on expert recommendations rather than politically driven initiatives.
Headquartered in Jacksonville, Florida, CSX is a major railroad serving the eastern U.S. The company's shares surged over 4.5% in extended trading following the earnings report.
