Rail giant CSX Corp., based in Richmond, VA, watched its earnings more than double in the third quarter of 2001– growth it attributes to more successful competition with the truckload industry for freight.
CSX said its third-quarter earnings topped $100 million, up 69% from the $59 million it earned in the third quarter of 2000. CSX added that its third-quarter 2000 earnings did not include the $365 million it gained from selling its contract logistics business last year, which, along with cost-cutting efforts, boosted last year’s third-quarter earnings over $427 million.
"Our railroad is operating at a very high level of efficiency. We are shedding costs, rate increases are holding, and we are taking trucks off the road," said John W. Snow, CSX’s chairman & CEO. "More and more, customers are recognizing the advantages of railroad economics as they seek to lower their supply-chain costs."
CSX added that its intermodal operations, which both compete and cooperate with ruckload carriers, reported big gains in the third quarter of 2001. Third-quarter operating income at CSX’s rail and intermodal businesses totaled $237 million vs. $190 million in the same period last year. That increase comes despite a falloff in traffic, as railcar loads were down 2.6%. Total rail and intermodal revenues stayed flat in the third quarter of this year compared with 2000, hovering at approximately $1.8 billion.