JACKSONVILLE, Fla., April 15, 2014 /PRNewswire/ --
- First-quarter earnings per share of $0.40
- CSX continues to expect modest full-year earnings growth
- Merchandise and intermodal show continued strength, and the utility coal environment is improving
- Quarterly dividend increases 7 percent beginning in second quarter to $0.16 per share
CSX Corporation (NYSE: CSX) today announced first-quarter net earnings of $398 million, or $0.40 per share, down from $462 million, or $0.45 per share in the same quarter of 2013.
For the quarter, revenue grew 2 percent to $3.0 billion on volume increases of 3 percent, with strength in intermodal and merchandise markets more than offsetting declines in coal. However, operating income declined 16 percent to $739 million and the operating ratio increased 520 basis points to 75.5 percent, primarily due to the impact of harsh weather. CSX estimates that weather-related disruptions increased expenses by approximately six cents per share, and impacted revenue contribution by about two to three cents."The company is indebted to the dedicated men and women of CSX who worked tirelessly through one of the worst winters on record to keep the network running as fluidly as possible," said Michael J. Ward, chairman, president and chief executive officer. "Thanks to the hard work of our employees, service levels are gradually recovering, and we are capitalizing on an economy that continues to show positive momentum." Looking forward, CSX expects modest full-year earnings growth for 2014 on the strength of broad-based merchandise and intermodal gains and an improving domestic coal environment. In addition, the company remains confident in its ability to sustain double-digit earnings growth and margin expansion for its shareholders in 2015 and beyond. The company expects to sustain a mid-60s operating ratio longer-term.