Latest news with #JoeHinrichs
Yahoo
6 days ago
- Business
- Yahoo
CSX profits fall on lower revenue, higher costs
CSX's second-quarter profits slumped as unfavorable changes in traffic mix drove a revenue decline and costs rose amid congestion and detours related to a pair of main line outages. But executives said they were encouraged by the pace of the railroad's (NASDAQ: CSX) operational recovery during the quarter, which produced improvements in on-time performance. 'We are proud of how our network performance has bounced back from the challenges of the first quarter,' Chief Executive Joe Hinrichs told investors and analysts on the railroad's earnings call Wednesday. The railroad's operating income declined 11%, to $1.28 billion, as revenue decreased 3%, to $3.57 billion. Earnings per share declined 10%, to 44 cents. CSX's operating ratio, including its trucking operations, was 64.1, a 3.2-point increase from a year ago as expenses rose 2%. Overall quarterly volume was flat. Intermodal was up 2%, merchandise declined 2%, and coal volume increased 1%. International intermodal volume grew during the quarter, while domestic volume was stable. In the merchandise segment, growth in metals, minerals, and agricultural shipments were not enough to offset declines in automotive, forest products, chemicals, and fertilizer traffic. 'Many of the industrial markets we serve continue to face challenges with uncertainty around tariffs, trade, interest rates, and the overall direction of the economy,' Chief Commercial Officer Kevin Boone said. CSX still expects overall volume growth this year thanks to dozens of industrial development projects coming on line and conversion of freight from highway to intermodal, Boone said. CSX also is encouraged by the progress of its new Southeast Mexico Express interline intermodal service launched with Canadian Pacific Kansas City in December via their new interchange at Myrtlewood, Ala., on the former Meridian & Bigbee short line. The Howard Street Tunnel clearance project remains on schedule toward completion early in the fourth quarter, while related bridge clearance work in Baltimore is on pace for completion in the second quarter of 2026. The tunnel will reopen when work is complete, allowing CSX to end daily detours around Baltimore. The tunnel and bridge clearance work will open up the carrier's I-95 corridor for double-stack intermodal service for the first time and allow Baltimore-Midwest stack traffic to take the direct route via the former Baltimore & Ohio main line, rather than the current roundabout routing via Selkirk, N.Y., on the former New York Central Water Level Route. Work to reopen the hurricane-damaged Blue Ridge Subdivision – the former Clinchfield Railroad in rugged western North Carolina and eastern Tennessee – is expected to be completed on schedule in the fourth quarter, as well. 'We are very pleased with the progress that has been made at our Howard Street Tunnel and Blue Ridge rebuild projects. We expect completion in the fourth quarter, which will remove two key constraints from our network,' Hinrichs said. 'Finishing these two projects will open back up two of our four north-south routes, and … we're excited about removing the last impediment to double stack intermodal on the I-95 corridor.' A string of harsh weather, combined with the main line outages, led to congestion after the Feb. 1 shutdown of the Howard Street Tunnel. CSX's operations accelerated as the quarter went on, with average train speed increasing 8% from April through June and dwell declining by 18%. The number of cars online — a key congestion metric — declined 10% as the quarter progressed. 'Our recovery is a true testament to the hard work and dedication of every railroader at CSX,' Chief Operating Officer Mike Cory said. Intermodal trip-plan compliance held steady at 90% compared to the first quarter but was down 4 points compared to a year ago. Merchandise trip-plan compliance of 75% was 6 points higher than the first quarter but 5 points lower than a year ago. Customer switch data of 94% was flat compared to last year's second quarter and a 1-point improvement over the first quarter. The on-time performance figures are not yet where CSX wants them, Cory says, but he expects ongoing improvement, particularly after the Howard Street and Blue Ridge projects wrap up and allow the railroad to end the related detours of up to 22 trains per day. 'While these projects unlock significant capacity for the entire network, we are also upgrading our capacity and throughput at our yard in Indianapolis, with the extension of the hump pullback,' Cory said of Avon Yard in Indiana, one of five hump yards on the system. 'While this project is small in nature relative to the other two, it'll give us the ability to hump more cars … at a very critical yard in our network.' Despite the service issues, CSX's customers gave the railroad the highest marks ever in a second-quarter internal survey, Boone said. And Hinrichs added regulators received zero complaints from shippers despite the impact of congestion. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your look: Weaker coal, carloads hit CSX earnings As merger talk heats up, deep bench will advise rail regulator Analysis: What a Union Pacific – Norfolk Southern merger would look like BNSF aims to grow carload traffic with rail service upgrades The post CSX profits fall on lower revenue, higher costs appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
7 days ago
- Business
- Bloomberg
CSX CEO Is Open to ‘All Possibilities' as Rivals Look for Deals
CSX Corp. Chief Executive Officer Joe Hinrichs said he's open to merger talks with other companies amid reports that Union Pacific Corp. and Norfolk Southern Corp. are discussing a combination. 'We're open to any and all possibilities that create value for our shareholders, to help us profitably grow and serve our customers better,' Hinrichs said during an interview on Wednesday. 'We have an active board and we're having good discussions.'
San Francisco Chronicle
7 days ago
- Business
- San Francisco Chronicle
CSX profit falls 14% in the second quarter even though rail shipments were flat
CSX railroad's profit slipped 14% in the second quarter even though the volume of shipments it delivered remained flat as it continued working on two major construction projects on its network. 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's latest earnings report comes as rumors swirl in the industry about t he possibility that a merger between two of the country's largest freight railroads might be proposed. The Associated Press reported last week that Union Pacific was in merger talks with Norfolk Southern. CEO Joe Hinrichs said he doesn't want to comment on the rumors and that CSX is focused on improving its operations, but he said his railroad would remain open to any possibilities that would help boost shareholder value. 'While we are confident in CSX's path forward, we welcome all opportunities that will allow us to deliver value for our shareholders, drive thoughtful growth, and serve our customers better,' Hinrichs said. 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. Hinrichs emphasized that he thinks there are opportunities to attract new business and prosper by working together with other railroads today. One example is the new service that CSX and CPKC railroads recently announced to deliver shipments that CPKC picks up in Mexico and have CSX deliver them in the southeast United States. 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 Hinrichs said the railroad is operating much more fluidly than it was in the first quarter of this year when the results disappointed. The railroad is also restructuring its management jobs. CSX executives said it remains hard to predict consumer sentiment that drives so much of the economy right now, but if Donald Trump's tariff policy becomes more certain in the second half of the year that should help consumers and businesses feel more comfortable spending and expanding their operations.
Yahoo
7 days ago
- Business
- Yahoo
CSX profit falls 14% in the second quarter even though rail shipments were flat
CSX railroad's profit slipped 14% in the second quarter even though the volume of shipments it delivered remained flat as it continued working on two major construction projects on its network. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
First look: Weaker coal, carloads hit CSX earnings
CSX Corp. (NASDAQ: CSX) announced second quarter operating income of $1.28 billion compared to $1.45 billion in the prior year period. In an earnings release after the close of markets, the Jacksonville-based company said net income was $829 million, or $0.44 per diluted share, compared to $963 million, or $0.49 per diluted share y/y. Revenue totaled $3.57 billion for the quarter, off 3%, year-over-year, as the effects of lower export coal prices, reduced fuel surcharge, and weaker merchandise volume were only partially offset by higher merchandise pricing, an increase in other revenue, and improved intermodal volume. Operating income of $1.28 billion was off 11%, while operating margin was 35.9% for the quarter, decreasing by 320 basis points year-over-year but increasing by 550 basis points sequentially. Earnings per share of $0.44 was down 10% compared to the prior year while increasing 29% from the previous quarter. Total volume of 1.58 million units for the quarter was flat compared to second quarter 2024 and up 4% sequentially. 'The skill and commitment of CSX's railroaders enabled us to deliver significant sequential improvements in network fluidity and cost efficiency that are apparent in our financial results,' said Joe Hinrichs, president and chief executive officer, in a release. 'While uncertainty continues to impact select industrial markets, we remain focused on completing two major infrastructure projects that will strengthen our position to execute on many profitable growth opportunities ahead.' Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Find more articles by Stuart Chirls merger talk heats up, deep bench will advise rail regulator Analysis: What a Union Pacific – Norfolk Southern merger would look like BNSF aims to grow carload traffic with rail service upgrades Report: Goldman Sachs advising BNSF on potential merger The post First look: Weaker coal, carloads hit CSX earnings appeared first on FreightWaves.
