CSX’s first-quarter profit nearly doubled thanks to further cost cuts at the railroad and a restructuring that weighed on its earnings a year ago.
The Jacksonville, Florida-based company on Tuesday posted net income of $695 million, or 78 cents per share. That’s up from last year’s $362 million, or 39 cents per share.
CSX Corp. is continuing the overhaul of its operations that began last year before CEO Hunter Harrison’s death in December. His successor, Jim Foote, said CSX is drastically changing the way it operates by reducing the number of locomotives it uses and running trains on a tighter schedule.
“We are making progress, but there is clearly more opportunity ahead,” Foote said.
CSX said it generated $2.88 billion revenue even though the railroad hauled 4 percent fewer carloads of goods.
The results topped Wall Street’s expectations. The analysts surveyed by Zacks Investment Research expected earnings of 66 cents per share in the latest quarter and $2.83 billion revenue.
CSX stock chugged ahead 4 percent to $58.80.
Through the close of regular-session trading Tuesday, CSX shares had climbed almost 3 percent since the beginning of the year, while the Standard & Poor’s 500 index has stayed nearly flat.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CSX at https://www.zacks.com/ap/CSX