CSX 2Q Revenue, Earnings Decline As Intermodal Activity, Staffing Challenges Persist

By Denny Jacob

CSX Corp. on Thursday recorded a decline in top and bottom line results against a backdrop of challenges including long-running staffing shortages and intermodal activity.

The Jacksonville, Fla.-based railroad, which operates in much of the Eastern U.S., posted earnings of $996 million, or 49 cents a share, for the second quarter ended June 30, down 15% from $1.18 billion, or 54 cents a share, a year earlier. Analysts polled by FactSet expected earnings of 50 cents a share.

Revenue declined 3% to $3.7 billion from $3.82 billion. Analysts polled by FactSet expected $3.73 billion.

CSX said the decline in revenue was primarily due to lower fuel recovery, pricing declines in export coal and lower intermodal volume, among other reasons.

CSX and other major U.S. freight railroads have recently reached agreements with unions representing employees such as track workers and machinists to pay for at least four days of sick leave a year against the backdrop of labor challenges that nearly resulted in a nationwide strike last year. CSX, Union Pacific and Norfolk Southern have also signed agreements with unions to offer train crews more predictable rest schedules.

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(END) Dow Jones Newswires

July 20, 2023 16:31 ET (20:31 GMT)

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