CSX profit declines on lower coal prices, drop in fuel surcharges (NASDAQ:CSX)
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CSX (NASDAQ:CSX) shares were in the red after Wednesday’s close as the rail operator’s profits fell from last year on reduced fuel surcharges, lower coal prices, and decline in trucking revenue.
Total revenue of $3.68B for Q4 was down 1% from the same quarter last year but beat the Street’s estimate by $50M. Revenue attributed to a fuel surcharge fell to $334M from $406M while trucking revenue decreased $22M versus the prior year.
A profit of $0.45 per share beat expectations by a penny but came in 4 cents less than last year. This was attributed to higher labor costs, inflation, and purchased services.
As of Dec. 31, the company has cash and cash equivalents of $1.35B versus $1.96B last year.
“Our railroad is running well, we have the right team and resources in place, and we look forward to building on our positive momentum with profitable growth over this next year,” CSX chief executive Joe Hinrichs said.
CSX shares were down 2.5%.
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