CSX 2Q profit jumps on widespread economic jolt

By SAMANTHA BOMKAMP, AP Transportation Writer Samantha Bomkamp, Ap Transportation Writer – 35 mins ago

NEW YORK – Railroad CSX Corp. said Monday a stronger U.S. economy drove its second-quarter profit up 36 percent. An across-the-board improvement in shipping volume, prices and efficiency gains also helped.

CSX, based in Jacksonville, Fla., earned $414 million, or $1.07 per share, compared with $305 million, or 77 cents per share a year earlier.

Revenue rose 22 percent to $2.66 billion.

Thomson Reuters says analysts on average expected a profit of 98 cents per share on revenue of $2.63 billion.

CSX, which operates its signature blue-and-yellow locomotives from Canada to Florida and west to the Mississippi River, said Monday that "the economy remains dynamic" and "markets overall continue to improve."

Shipping volume was up in every category in the three-month period, except food and consumer shipments, which were flat. Shipments of vehicles and parts jumped the most — 63 percent compared with last year. Metal shipments surged 44 percent. Shipments of forest products like lumber, tied to the still-shaky housing market, rose 2 percent.

CSX, the third-largest railroad in the country, is the first among its peers to report earnings for the April-to-June period. The performance of railroads is an important economic indicator because they ship so many things that consumers and businesses use every day.

CSX shares rose in aftermarket trading, adding $1.14, or 2.2 percent, at $52.90.