CSX Corp. has announced fourth quarter net earnings of US$466 million – a 5% decline from US$491 million in 4Q14, or US$0.48 per share, which is down 2% from US$0.49 in the previous year.
Fourth quarter revenue saw a decrease of 13% as pricing gains were offset by the impact of lower fuel recovery, a 6% volume decline and continued transition in the company’s business mix. Expenses also decreased 13%, primarily as result of reduced fuel prices, lower volume-related costs and efficiency gains. Due to this, operating income reduced 12% to US$791 million, while the operating ratio improved 20 basis points to 71.6%.
For the full year 2015, CSX generated US$11.8 billion in revenue as growth in intermodal, automotive and minerals markets partially offset continued significant declines in coal. In this environment, the company delivered earnings per share of US$2.00, up 4% from 2014, on net earnings of US$2.0 billion. According to the company, improving service, resource alignment and efficiency gains helped generate operating income of nearly US$3.6 billion and the company’s first sub-70 full-year operating ratio at 69.7%.
“CSX delivered solid results in 2015 by balancing strong service with compelling cost control and efficiency gains despite a market challenged by low commodity prices and global impacts of the strong US dollar,” commented Michael J. Ward, Chairman and CEO. “With negative global and industrial market trends projected for 2016, full-year earnings per share are expected to be down compared to 2015. CSX will continue to be rigorous about efficiency, resources and service quality in order to maximise shareholder value and achieve a mid-60s operating ratio longer term.”
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/13012016/csx-corp-4q15-and-full-year-earnings-results-41/