CSX saw a growth in its top line with revenue increasing 7.4% in comparison to the prior year to reach a figure of $12.3bn. This was attributable to increases in fuel recovery, broad-based volume growth, pricing gains, higher supplemental revenue and a favourable mix.
All business segments posted a growth in revenues. Despite negligible increases in volumes, CSX’s Merchandise segment grew by 6.0%, in terms of revenue, driven by strong growth in its Minerals, Forest Products and Metals and Equipment. CSX’s Coal and Intermodal business segments saw revenue increase by 7.0% and 7.3% respectively.
Expenses for the year increased by 4.0% primarily driven by favourable items in the prior year that included a $142m impact of tax reform (related to the Company’s equity affiliates) and a reversal of share-based compensation expense, partially offset by efficiencies in labour and equipment rents in the current year.
However, net earnings were down 40.0% in comparison to 2017 from $5.5bn to $3.3bn. CSX explained that 2017 net earnings included a tax reform benefit resulting from the Tax Cuts and Jobs Act of 2017 and a restructuring charge.
CSX also announced the Board has authorized $5bn in share repurchases following the early completion of the existing $5bn authorization.
Source: CSX Corporation
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