With quarterly operating income of $933 million, an operating ratio of 68.3%, and net earnings of $507 million, CSX posted record financial results for the third quarter of 2015.
Though revenue declined 9% as pricing gains were more than offset by the combination of lower fuel recovery, a 3% volume decline and continued transition in CSX's business mix, continued low fuel prices, cost reductions reflecting lower volume and savings from “efficiency initiatives” reduced the company’s expenses by 11%. As a result, CSX posted record quarterly operating income of $933 million, a record-low operating ratio of 68.3%, and net earnings of $507 million, or a third- quarter record of $0.52 per share, compared to $0.51 in the second quarter of 2014.
"CSX's third quarter results demonstrate the company's ability to leverage improving service while controlling costs in a dynamic environment where commodity prices and the strength of the U.S. dollar are challenging many of our markets," said Michael J. Ward, CSX Chairman and CEO. "Our performance supports strong pricing and continued efficiency gains as we continue to drive value for customers and shareholders."
CSX said its “still targeting its full-year expectations for earnings per share growth in the mid-single digits and meaningful margin expansion as it progresses toward its longer-term goal of a full-year operating ratio in the mid-60s. “
These targets remain intact despite expectations for 2015 coal revenue to decline approximately $450 million primarily due to continued low natural gas prices and high inventory levels. In that regard, the company said it “now expects domestic coal volume to decline by more than 10% in 2015, while the full-year outlook for export coal volume remains approximately 30 million tons. These significant coal headwinds are now also expected to continue in 2016.”
This earnings announcement, as well as additional detailed financial information is contained in the CSX Quarterly Financial Report available through the company's website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.