CSX Corporation on Jan. 12, 2016 announced fourth-quarter 2015 net earnings of $466 million, a 5% decline from $491 million in the same period of 2014, or $0.48 per share, down 2% from $0.49 in the prior year.
Fourth-quarter 2015 revenue declined 13%, as pricing gains were more than offset by the impact of lower fuel recovery, a 6% volume decline and continued transition in the company’s business mix, the railroad said. Expenses also decreased 13%; primarily reflecting reduced fuel prices, lower volume-related costs and efficiency gains. As a result, operating income declined 12% to $791 million, while the operating ratio improved 20 basis points to 71.6%.
For the full year 2015, CSX generated $11.8 billion in revenue as growth in intermodal, automotive and minerals markets partially offset continued significant declines in coal. In this environment, the company delivered earnings per share of $2.00, up 4% from 2014, on net earnings of $2.0 billion. Improving service, resource alignment and efficiency gains helped generate operating income of nearly $3.6 billion and the company’s first sub-70 full-year operating ratio at 69.7%.
“CSX delivered solid results in 2015 by balancing strong service with compelling cost control and efficiency gains despite a market challenged by low commodity prices and global impacts of the strong U.S. dollar.” said Michael J. Ward, CSX Chairman and CEO.
“With negative global and industrial market trends projected for 2016, full-year earnings per share are expected to be down compared to 2015. CSX will continue to be rigorous about efficiency, resources and service quality in order to maximize shareholder value and achieve a mid-60s operating ratio longer term, ” Ward said.
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.