Florida-based CSX reported earnings of 51 cents per share, up about 6% from the same period last year. Net earnings totaled $459 million for the quarter.
Third quarter revenue increased 1% from the same time in 2016, up to $2.77 million and in line with forecasts from analysts polled by FactSet. CSX said the revenue increase was driven largely by core pricing gains and offset some by the impact of unfavorable mix.
Expenses declined $2 million year-over-year with efficiency gains of $95 million "more than offsetting the cost of inflation and fuels costs that were 19% higher on a per gallon basis when compared to the same quarter last year," CSX said.
CSX said it is on track for record efficiency gains as it advances its implementation of the Precision Scheduled Railroading model CEO Hunter Harrison kickstarted when he came to the company this year.
The company said it expects yearly earnings growth of 20% to 25% from 2016 earnings of $1.81 per share. Free cash flow before dividends should total about $1.5 billion for the year.
CSX shares were up 0.1% Tuesday morning after jumping as high as 2% just after the company reported earnings. Since the start of the year, CSX shares have gained over 47%.
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