CSX Corp., a nearly 200-year-old railway operator, said on Tuesday that revenue fell in the first quarter because of what its CEO calls “tough operating conditions.”
Jacksonville, CSX based on Fla.
said in a press release that declining cargo, coal and fuel surcharges were ingrained in other revenue increases, pushing sales down 1% to $ 2.81 billion, compared with 2, $ 86 billion in the same period last year.
James Foote, president and chief executive officer, said in a statement that “the intensifying economic momentum is providing more vision for volume growth and we are taking the necessary steps to ensure them. I am willing to handle these volumes and offer our customers an industry-leading product service. “
The company also reported net earnings falling more than 8% to $ 706 million, or 93 cents a share, compared with $ 770 million, or $ 1 a share, over the period a year ago. Analysts surveyed by FactSet were forecasting earnings of 96 cents a share on revenue of $ 2.79 billion.
CSX shares fell 2.2% after hours, after falling 0.26% in the regular session, to close at $ 98.45. As of now, the company’s shares are up nearly 8.5% compared to nearly 11% in the S&P 500 Index.
CSX shares have risen more than 61% in the past 52 weeks.