“We are pleased that our Surface Transportation businesses continued to show very strong earning power in the face of modest economic headwinds,” said Michael Ward, chairman, president and CEO of CSX Corporation. “We posted our 20th consecutive quarter of year-on-year revenue growth and sustained excellent levels of customer service.”
Q1 revenues were a quarterly record US$2.4bn, a 4% increase over the first quarter of 2006. The increase was driven by continued strong pricing, which also drove revenue-per-unit gains of 8%. Overall volumes were down by 4% compared with the first quarter of 2006, reflecting continued softness in the construction and automotive sectors.
CSX Surface Transportation businesses recorded Q1 operating income of US$487m. Excluding insurance recoveries, comparable operating income was US$469m, or 4% less than the first quarter of 2006. The company’s Q1 2007 earnings were achieved despite a US$28m expense related to a serious derailment and without the US$35m fuel hedge that benefited the first quarter of 2006.
“Given the positive outlook for rail transportation and our momentum in executing our strategy, we expect strong financial results for the rest of the year and over the long term,” said Ward.