CSX Q3 freight rail growth in line with projections
With the largest freight rail networks on the East Coast, CSX Transportation was expected to grow with a slowly recovering United States economy. The company reported third-quarter earnings that included a 12 percent gain, with revenue growing to $2.96 billion.
Net profit grew from $414 million one year ago to $464 million, which was also in line with analyst projections.
Despite the modest numbers, shipping volumes were unchanged for CSX, which doesn’t lend itself well to an economic turnaround.
“The leading indicators do not point to significant growth (in the U.S. economy),” RBC Capital Markets analyst Walter Spracklin told Bloomberg. “But they also do not point to declines, so this is consistent with that view.”
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According to a company statement, total shipments increased less than one percent in the third quarter. CSX also doesn’t see a holiday season shipping boom, projecting a “more moderate peak shipping season this year.”
Based in Jacksonville, CSX Transportation operates three Class I railroads in the eastern half of the U.S. Those freight lines include CSX Railroad, Norfolk Southern Railway and Canadian Pacific Railway.
The company’s two regions define five territories each. The Northern Region includes the Great Lakes, Chicago, Albany, Baltimore and Louisville divisions, while the Southern Region handles Atlanta, Huntington, Nashville, Florence and Jacksonville freight shipments.