(Corrects second paragraph to say revenue fell in the three
months ended Sept. 30, not Oct. 31)
By Nick Carey
CHICAGO Oct 12 No. 3 U.S. railroad CSX Corp
on Wednesday reported a lower quarterly net profit that
was hurt by an 8 percent drop in revenue and freight volumes,
but came in above market expectations and sent its stock up
nearly 3 percent.
The company said coal, which has long been a large and
lucrative piece of business for major U.S. rail companies,
continued its slide with freight volumes down 21 percent and
revenue off 20 percent in the three months ended Sept. 30.
Railroads have been hoping for a bottom to the slide in coal
that began in late 2014, as low energy prices encouraged
utilities to switch to burning cheaper natural gas. Coal exports
have also been hurt by the strong U.S. dollar.
CSX reported a drop in revenue for all the goods it hauls,
with the exception of automotive shipments, where revenue was up
6 percent thanks to continued robust U.S. auto sales.
The Jacksonville, Florida-based railroad reported
third-quarter net income of $455 million or 48 cents per share,
down nearly 8 percent from $507 million or 52 cents per share a
Analysts had on average expected earnings per share of 45
Revenue was down 8 percent at $2.7 billion from $2.94
billion a year earlier.
In post-market trading CSX shares were up 2.6 percent at
(Reporting By Nick Carey; Editing by Sandra Maler)