CSX 3Q railroad profit jumps 32% as volume grows 3%

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OMAHA, Neb. – CSX delivered a 32% leap successful third-quarter nett arsenic the measurement of goods it hauled accrued adjacent beyond past fall’s beardown level.

The Jacksonville, Florida-based railroad said Wednesday that it made $968 million, oregon 43 cents per share, successful the quarter. That’s up from $736 million, oregon 32 cents per share, a twelvemonth ago.

Shipping measurement was up 3% wide crossed CSX’s network. That came contempt a 26% driblet successful automotive shipments arsenic that manufacture struggles to support accumulation due to the fact that of the ongoing spot shortages. Agricultural shipments besides slipped 5% but each different class of shipments was up successful the quarter.

CSX's profits topped the 38 cents per stock that the analysts surveyed by FactSet predicted.

The railroad said its gross grew 24% from past twelvemonth to $3.29 billion, driven by the measurement growth. That besides topped the $3.06 cardinal that analysts predicted.

CSX said it was maintaining its outlook for double-digit gross maturation this twelvemonth adjacent without the interaction of its caller acquisition of Quality Carriers.

Last year, CSX and the different large railroads were deed with a crisp diminution successful shipments during the archetypal months of the coronavirus outbreak, followed by a surge that began successful the 2nd fractional of past twelvemonth and continues today.

So the measurement comparisons this 4th were tougher than earlier this twelvemonth due to the fact that past autumn the system was roaring backmost to beingness arsenic restrictions related to the pandemic were being lifted.

The railroad is besides dealing with proviso concatenation problems that person been delaying shipments nationwide due to the fact that of the backlog astatine ports and a shortage of motortruck drivers to present containers of goods to their last destinations.

“We are committed to helping our customers flooded the existent proviso concatenation challenges,” CSX CEO Jim Foote said.

The railroad has taken a fig of steps to support freight moving adjacent though the shipping strategy wide remains clogged. For instance, CSX has created 13 overflow railyards to assistance store immoderate of the shipping containers that are waiting to beryllium delivered to warehouses and unloaded.

Foote said the railroad is inactive having occupation hiring capable workers — just arsenic galore businesses are — which is limiting however overmuch freight CSX tin handle.

“Everything seems to beryllium stretched bladed close present astatine a clip erstwhile determination is large request for radical to enactment and precise fewer radical that privation to work,” Foote said.

But the system continues to surge. Foote said astir businesses archer the railroad that request is beardown but companies are having occupation gathering that request due to the fact that of the proviso concatenation challenges.

Edward Jones expert Jeff Windau said the railroad's results were precise beardown fixed each the challenges it faces, including the clogged proviso lines, the shortage of workers and the ongoing coronavirus pandemic.

CSX is 1 of the nation's largest railroads, and it operates much than 21,000 miles (34,000 kilometers) of way successful 23 Eastern states and 2 Canadian provinces.

Shares successful CSX Corp. were up astir 3% successful after-hours trading pursuing the merchandise of the net report.

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