CSX's delivered 3% more shipments in the third quarter to help drive its profit 8% higher, but only modest volume growth is expected in the rest of the year as the Southeast rebuilds after two major hurricanes.
The railroad said Wednesday that it earned $894 million, or 46 cents per share. That's up from $828 million, or 41 per share a year ago. That's lower than the 48 cents forecast by the analysts surveyed by FactSet Research.
The Jacksonville, Florida-based railroad is recovering from Hurricanes Helene and Milton that battered its extensive network in the Southeast. Some trains had to be re-routed across the region as tracks are cleared and repaired.
The railroad expects the hurricanes to be a $50 million drag on its fourth-quarter results through a combination of rebuilding costs and lost revenue.
CSX CEO Joe Hinrichs said the railroad has remained “flexible and resilient” despite the storm damage and “we remain ready to meet our customers' needs.”
In addition to the disruption from the hurricanes, CSX said demand for metals and automotive shipments is weaker than expected. As a result, the railroad's revenue is expected to be down about $200 million in the fourth quarter.
During the quarter that ended Sept. 30, the railroad said its revenue crept up 1% to $3.62 billion. Analysts were expecting CSX to report revenue of $3.68 billion.
The railroad has been working for years to reduce its expenses by running fewer, longer trains, so it can operate with fewer locomotives and train crews. That work to streamline the railroad’s operations continued this quarter with expenses declining 2% to $$2.27 billion.
CSX is one of the nation’s largest railroads serving the eastern United States.
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