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Rail News: CSX Transportation
CSX expects slight earnings decline in Q4; intermodal to lead growth in 2016
CSX Corp. expects fourth-quarter 2015 earnings to decline slightly compared with fourth-quarter 2014, as the company continues to face headwinds in the energy market, Chief Financial Officer Frank Lonegro said yesterday at the Baird International Conference in Chicago.
CSX continues to target mid-single digit, full-year earnings per share growth as intermodal growth and efficiency initiatives offset about $450 million in coal revenue declines, according to a company press release.
"CSX has leveraged its diverse portfolio and network reach to consistently deliver record earnings per share growth, despite declines in coal revenue of more than $1 billion over the past four years," Lonegro said in a prepared statement. "While we expect the energy market headwinds to continue in 2016, we are focused on capturing opportunities in intermodal and industrial markets, and on delivering excellent service for customers to support our pricing, growth and efficiency targets."
Growth next year will be led by intermodal, as the Class I continues to drive highway-to-rail conversions. Also, the company anticipates efficient service for automotive customers will lead industrial market growth, as North American production of light vehicles increases, company officials said.
Contact Progressive Railroading editorial staff.