CSX Reports 11% 1Q Earnings Increase
CSX Corp. reported first-quarter earnings rose 11% from a year ago, while Norfolk Southern Corp. said its first-quarter profit will be down about 15% from the first quarter of 2014.
CSX reported earnings of $442 million, or 45 cents per share, compared with $398 million, or 40 cents, a year ago. Revenue was flat at about $3 billion.
The Eastern freight railroad reported growth across many of its market sectors and cited an improved pricing environment, although those were which partially offset by lower natural-gas prices, lower fuel-surcharge recovery costs and a strong U.S. dollar.
CSX also announced a $2 billion share repurchase program that will take place over the next 24 months and said it will boost its dividend 13% to 18 cents per share, which will be payable June 15 to shareholders of record as of May 29.
Norfolk Southern, the other major Eastern freight railroad, issued a preliminary earnings forecast in which it said its earnings would decline to $1 per share.
It attributed that to projected lower-than-expected revenue of about $2.6 billion, which would be 5% less than the same period last year.
Norfolk Southern will release its first-quarter earnings report April 29.
