CSX revenue, net income falls in Q4, but OR sets a record

CSX Corp. yesterday reported fourth-quarter 2020 net earnings of $760 million, or 99 cents per share, compared with $771 million, or 99 cents per share, in the previous year's same quarter.

The Q4 2020 net income included a $48 million charge, or 5 cents per share after tax, related to debt retirement.

Revenue during the quarter decreased 2% from the prior year to $2.83 billion, as intermodal growth was more than offset by lower fuel surcharge revenue and coal declines. Expenses fell 7% year over year to $1.61 billion, driven by fuel expenses and efficiency gains, company officials said in a press release.

Operating income climbed 5% to $1.22 billion from $1.15 billion in the same 2019 period.

The Class I's operating ratio (OR) of 57% — compared with 60% a year earlier — set a fourth-quarter record, CSX officials said.

"I am extremely proud of how CSX's team of railroaders continuously rose to the challenges this year presented," said President and Chief Executive Officer James Foote. "Throughout this difficult period, they have shown an unwavering commitment to our customers and remained focused on ensuring the delivery of critical goods to millions of Americans."

Looking ahead to 2021, CSX officials expect volumes to outpace GDP growth, with merchandise volume growth exceeding industrial production; intermodal volumes growing faster than merchandise; and the coal market improving from 2020 trough levels.

Also, CSX is targeting capital expenditures of $1.7 billion to $1.8 billion this year.