CSX profit revenues decreased in the fourth quarter because the growth of goods and intermodal traffic was not sufficient to overcome the sharp drops of coal and fuel revenue.
The impact of a hurricane pair of which they both influenced the traffic related to and from Florida, the state with the largest amounts of railway-was expanded on CSX (NYSE: NYSE: CSX) Operations, measuring data and quarterly results.
“Generally, we have done well through a difficult period. However, we are not satisfied with this results,” said CEO Joe Hinrichs analysts and investors on a call for earnings on Thursday. “We have a clear vision of what we want to achieve on CSX … and we are dedicated to providing this vision in favor of our customers, our employees and our shareholders.”
Operational revenue in the fourth quarter decreased by 16%, partly due to a goodwill damage fee of $ 108 million, which included his quality carrier. If there is no reduction fee, operating income has reduced 8%for the quarter. The income decreased by 4%to $ 3.53 billion. Earnings per share decreased by 16%, to 38 cents.
Operational ratio or operational costs in the percentage of revenue were 68.7 for a quarter, 4.4 points more than a year ago.
CSX holds a three -year -old gastal chance that he has dropped on his investor Day in November, but the executives warned that the railway would face $ 350 million worth of winds from lower coal and fuel surcharge revenue this year, primarily in the first half of the years.
This year, CSX will also absorb larger operating expenses of $ 10 million a month related to the construction of the Howard Street in Baltimore tunnels and renovate Blue Ridge.
CSX began to turn traffic over the Norfolk Southern before the scheduled date of the start of the Howard Street project, February 1, which will allow rail run to start with double intermodal trains through Mid-Atlantic for the first time. The long -awaited project should be completed by the end of the year.
The Sub Blue Ridge, which passes through the rugged mountains of Western North Carolina and Eastern Tennessee, suffered damage from Hurricane Helena worth $ 400 million. Traffic is diverted, increasing the miles and additional costs of the crew, while the line is renewed.
For a quarter, the total volume increased by 2%, stimulated 4% by increasing the intermodal volume. The volume of the goods was flat, while coal traffic sank 7%.
The prospects for this year include the total volume growth of 3% to 6%, guided by intermodal and commodity.
