US EditionCSX profit falls 22% as new CEO takes over but performance is expected to improve
CSX’s profit fell 22% due to major construction and a $164 million goodwill charge while CEO Steve Angel aims to improve performance and explore strategic opportunities.
- On Thursday, CSX reported third-quarter earnings fell 22%, posting $694 million, or 37 cents per share, in the first report since CEO Steve Angel took the job late last month.
- Construction projects over the past year limited CSX's flexibility and capacity, while a $164 million goodwill impairment charge and last month’s Hurricane Helene and Baltimore tunnel repairs weighed on results.
- Operational metrics reveal CSX delivered 87% of its shipments on time in the quarter.
- Investors reacted by looking past the 22% drop and focusing on new CEO Steve Angel's openness to strategic opportunities without promising a merger, amid pressure from investors like Ancora Holdings to seek a deal if the $85 billion Union Pacific-Norfolk Southern deal is approved.
- Steve Angel, 70, has not worked at a railroad before but led Praxair for a decade, while BNSF and CPKC favor cooperative agreements over mergers.
20 Articles
20 Articles
CSX earnings slump under the weight of one-time charges and coal decline
With Clinchfield Railroad heritage unit No. 1902 in the lead, a CSX coal train breaks a blue ribbon to celebrate the reopening of the Blue Ridge Subdivision last month. CSX JACKSONVILLE, Fla. — CSX’s profits declined in the third quarter as intermodal growth could not offset an 11% decline in coal revenue. But the railroad’s key operating metrics all improved, even amid detours related to a pair of major construction projects, the Howard Street …
Associated Press News
CSX profit falls 22% but investors focus on the direction the new CEO will take the railroad
Investors looked past a 22% drop in CSX’s third quarter earnings Thursday and focused on the direction the railroad's new CEO might take it and the possibility of any strategic deals.
CSX Profit Falls 22% as New CEO Takes Over but Performance Is Expected to Improve
CSX's earnings fell 22% in the third quarter as the railroad wrapped up two major construction projects that were limiting traffic, but volume was still up slightly and the results were weighed down by a one time charge.
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