CSX Profit Top Estimates

(RTTNews) - Railroad operator CSX Corp. (CSX), Tuesday reported a slight rise in third-quarter profit, mainly on lower income tax expenses, even as revenue grew four percent on volume and pricing gains in merchandise and intermodal segments. The growth in revenue was somewhat offset by higher expenses and as coal shipments continued to drop. Nonetheless, both earnings and revenue for the quarter topped Wall Street estimates.

CSX said it now expects full-year 2013 earnings to be slightly up from 2012 levels, when it earned $1.76 per share. Analysts polled by Thomson Reuters currently expect earnings of $1.80 per share for the year.

The company remains on target to achieve its goal of sustaining a high-60s operating ratio by 2015, while remaining focused on attaining a mid-60s operating ratio in the long-term.

"CSX posted historically high financial results as it continued to effectively manage ongoing challenges in the coal market and leverage growth opportunities in merchandise and intermodal," said CEO Michael Ward.

CSX is the first of big railroads to report quarterly numbers for the season. Results of railroad operators are a vital indicator of economic health of a nation.

The Jacksonville, Florida-based company reported quarterly net income of $463 million or $0.46 per share, compared with $455 million or $0.44 per share last year.

On average, 24 analyst polled by Thomson Reuters expected earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter climbed to $3 billion from $2.89 billion a year ago. Nineteen analysts had a consensus revenue estimate of 2.95 billion for the quarter.

Merchandise volumes grew 5 percent from a year ago, on higher chemicals, metals, and forest products. Intermodal volumes were up 6 percent, while coal fell 7 percent.

Expenses climbed 5 percent to $2.14 billion, leading to flat operating income of $854 million. Operating ratio for the quarter worsened to 71.5 percent from 70.5 percent in the prior year.

Results were helped by income tax expense that decreased by $6 million to $260 million.

The company's stock closed at $26.10, up $0.08 or 0.31%, on a volume of 7 million shares on the NYSE. In after hours, the stock gained $0.35 or 1.34%, to trade at $26.39. In the past year, the stock traded in a range of $18.88 - $26.90.