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Rail News: CSX Transportation

Power outage, hurricane and operating difficulties drain quarterly income from CSX


On Oct. 22, CSX Corp. reported third-quarter surface-transportation revenue of $1.82 billion, a 2 percent increase compared with the same 2002 period.

However, total revenue of $1.88 billion dropped 2 percent compared with $2 billion in third-quarter 2002 primarily because the company sold CSX Lines to the Carlyle Group in February.

CSX also reported a quarterly operating loss of $98 million compared with operating income of $276 million during the same 2002 period.

Surface transportation operating income declined primarily because of poor network fluidity, which increased equipment, employee, fuel and related service expenses, according to a prepared statement. CSX Transportation also incurred costs and lost revenue because of the power blackout in the Northeast and Midwest, and effects from a computer virus and Hurricane Isabel.

"Operating inefficiencies continued to keep our expenses too high," said CSX Chairman and Chief Executive Officer, and CSXT President and Chief Operating Officer Michael Ward. "As we move forward, a more disciplined approach is beginning to improve the fluidity of our network. I am confident that as we improve our service, we will drive productivity up significantly and deliver more to the bottom line."

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More News from 10/23/2003