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

Oct 20, 2021, 1:57 PM | Updated: 10:28 pm

OMAHA, Neb. (AP) — CSX delivered a 32% jump in third-quarter profit as the volume of goods it hauled increased even beyond last fall’s strong level.

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

Shipping volume was up 3% overall across CSX’s network. That came despite a 26% drop in automotive shipments as that industry struggles to maintain production because of the ongoing chip shortages. Agricultural shipments also slipped 5% but every other category of shipments was up in the quarter.

CSX’s profits topped the 38 cents per share that the analysts surveyed by FactSet predicted.

The railroad said its revenue grew 24% from last year to $3.29 billion, driven by the volume growth. That also topped the $3.06 billion that analysts predicted.

CSX said it was maintaining its outlook for double-digit revenue growth this year even without the impact of its recent acquisition of Quality Carriers.

Last year, CSX and the other major railroads were hit with a sharp decline in shipments during the initial months of the coronavirus outbreak, followed by a surge that began in the second half of last year and continues today.

So the volume comparisons this quarter were tougher than earlier this year because last fall the economy was roaring back to life as restrictions related to the pandemic were being lifted.

The railroad is also dealing with supply chain problems that have been delaying shipments nationwide because of the backlog at ports and a shortage of truck drivers to deliver containers of goods to their final destinations.

“We are committed to helping our customers overcome the current supply chain challenges,” CSX CEO Jim Foote said.

The railroad has taken a number of steps to keep freight moving even though the shipping system overall remains clogged. For instance, CSX has created 13 overflow railyards to help store some of the shipping containers that are waiting to be delivered to warehouses and unloaded.

Foote said the railroad is still having trouble hiring enough workers — just as many businesses are — which is limiting how much freight CSX can handle.

“Everything seems to be stretched thin right now at a time when there is great demand for people to work and very few people that want to work,” Foote said.

But the economy continues to surge. Foote said most businesses tell the railroad that demand is strong but companies are having trouble meeting that demand because of the supply chain challenges.

Edward Jones analyst Jeff Windau said the railroad’s results were very strong given all the challenges it faces, including the clogged supply lines, the shortage of workers and the ongoing coronavirus pandemic.

CSX is one of the nation’s largest railroads, and it operates more than 21,000 miles (34,000 kilometers) of track in 23 Eastern states and two Canadian provinces.

Shares in CSX Corp. were up nearly 3% in after-hours trading following the release of the earnings report.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Wisconsin Democratic Gov. Tony Evers, is joined by his running mate state Rep. Sarah Rodriguez, as ...
Associated Press

Trump ties may come back to haunt in swing state Wisconsin

MADISON, Wis. (AP) — Donald Trump reasserted his grip on Republicans in Wisconsin’s primary, but both Democrats and Republicans said Wednesday that the former president’s involvement in key races for governor and U.S. Senate could come back to hurt them in the swing state. Trump’s pick for governor, construction company co-owner Tim Michels, beat out […]
11 hours ago
Associated Press

Wisconsin woman in Slender Man attack drops release request

WAUKESHA, Wis. (AP) — One of two Wisconsin women who were sent to a state mental health facility after a 2014 stabbing attack on a sixth-grade classmate that they claimed was to appease the horror character Slender Man has withdrawn her petition for release. In June, Morgan Geyser, 20, asked Waukesha County Judge Michael Bohren […]
11 hours ago
Associated Press

Editorial Roundup: United States

Excerpts from recent editorials in the United States and abroad: Aug. 8 The Wall Street Journal on Trump’s Senate nominees: Donald Trump now has the Senate nominees he wanted to win Republican primaries. We’ll soon learn if they can win in November, or if candidates with little experience and a focus on Mr. Trump’s 2020 […]
11 hours ago
FILE - A sign-carrying anti-gay protester is surrounded by a sea of Pride umbrellas during the Prid...
Associated Press

Florida’s ‘Don’t Say Gay’ law fuels anti-LGBTQ hate online

Research that analyzed social media posts finds that hateful references to gays, lesbians and other LGBTQ people surged online after Florida passed a law that bars instruction on sexual orientation and gender identity in kindergarten through third grade. References to pedophiles and ” grooming ” rose by more than 400 percent in the month after […]
11 hours ago
Conspiracy theorist Alex Jones attempts to answer questions about his emails asked by Mark Bankston...
Associated Press

What’s next for Alex Jones after $49M Sandy Hook verdict?

DALLAS (AP) — The nearly $50 million defamation verdict against Alex Jones for his years of lies about the Sandy Hook Elementary School massacre is far from a final reckoning. Jones’ attorneys plan to appeal and try to lower the price tag a Texas jury put on his false claim that the nation’s deadliest school […]
11 hours ago
Follow @ktar923...
Sponsored Content by Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
CSX 3Q railroad profit jumps 32% as volume grows 3%