CSX profit falls 14% in the second quarter even though rail shipments were flat
The Jacksonville, Florida-based railroad said Wednesday it earned $829 million, or $0.44 per share. That's down from $963 million, or $0.49 per share, a year ago.
That's in line with what the analysts surveyed by FactSet Research predicted.
CSX is in the middle of expanding a key tunnel in Baltimore, so it will be able to carry double-stacked shipping containers, and the railroad is completing repairs related to Hurricanes Helene and Milton.
But CEO Joe Hinrichs said the railroad is operating much more fluidly than it was in the first quarter of this year when the results disappointed.
CSX's latest earnings report comes as rumors swirl in the industry about t he possibility that a merger between two of the largest freight railroads might be proposed. The Associated Press reported last week that Union Pacific was in merger talks with Norfolk Southern.
If merger actions heat up in the industry, CSX could be a target for one of the western railroads trying to build a transcontinental network. But the prospects for any deals among the major freight railroads remain uncertain because regulators might be reluctant to approve them.
CSX is one of the major freight railroads that serves the eastern United States and competes with Norfolk Southern.
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