CSX Earnings Fall Short

Railroad volumes decline.
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CSX

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posted first-quarter earnings that came in slightly shy of estimates, as weakness in the construction and automotive sectors hurt volume.

The railroad operator's earnings slipped to $240 million, or 52 cents a share, from $245 million, or 53 cents a share, a year earlier. The results included a gain of $18 million, or 2 cents a share, related to insurance recoveries.

Analysts polled by Thomson Financial had an average estimate for earnings of 53 cents a share.

Revenue climbed 4% to $2.4 billion, compared with Wall Street's forecast of $2.38 billion. CSX attributed the increase to strong pricing, which helped offset a 4% decline in volumes.

"Given the positive outlook for rail transportation and our momentum in executing our strategy, we expect strong financial results for the rest of the year and over the long-term," said Chairman, President and CEO Michael Ward.

Shares were down 3 cents to $43.30 in after-hours trading.