CSX sees flat year-over-year growth amid challenges (Courtesy of the Jacksonville Business Journal) — CSX Corp. saw a quarter of modest sequential growth and flat year-over-year growth as merchandise pricing and volume improved amid declining coal prices from the Francis Scott Key Bridge collapse in Baltimore.
Net earnings for the Jacksonville-based rail company were at $963 million or 49 cents per diluted share in Q2 of 2024, down from $984 million, or 49 cents per diluted share in Q2 of last year.
The earnings were tied to $3.70 billion of revenue, which was flat year-over-year. CSX saw an operating income of $1.45 billion in Q2 of 2024 from $1.47 billion in the same period of 2023.
Declines in export coal prices, reduction in other revenue and lower fuel surcharge offset the benefits from merchandise pricing gains and growth in intermodal and merchandise volume.
Total volume reached 1.58 million units in Q2 and increased 2% from the same period in 2023. Intermodal volume rose up by 5% in Q2, coal declined by 3% and total merchandise had a 1% rise.
Revenue from total merchandise rose 5% and from intermodal rose 3% in Q2 compared to the same period last year. Total merchandise wracked in $2.3 billion in Q2 of 2024, an increase from $2.2 billion from the same time last year and Intermodal gained $506 million in Q2 compared to $492 million in Q2 of last year.
CSX executives estimated total volume would have been higher if it were not for disruptions in Baltimore. Revenue from coal cargo in Q2 of 2024 took a nosedive by 12% from Q2 a year ago. Coal declined to $563 million in Q2 of 2024 from $637 million in Q2 of 2023.
But shipments of export coal increased to 10.6 million tons in Q2 from 9.8 million in Q2 of 2023 despite the effects of the bridge collapse in Baltimore. Domestic coal shipments declined as there were lower shipments of coal to utility plants and river and lake terminals.
While discussing the Q2 numbers during an earnings call, CEO Joe Hinrichs praised staff for rising up to the challenges of the bridge collapse and service disruptions in Baltimore.
“We’re proud to achieve this result even with the constraints at the Port of Baltimore that impacted our coal shipments,” Hinrichs said. “Our coal team did an excellent job of finding creative ways to respond to the Key Bridge collapse and deliver for our customers.”
But CSX’s injury rate has been rising as it hit a 37% increase in Q2 compared to the same period last year. The FRA train accident rate for Q2, however, decreased by 23% compared to the same quarter last year.