CSX (NYSE:CSX), the third-largest U.S. railroad, reported a third-quarter profit that topped market expectations as cost cuts and lower fuel prices helped overcome falling coal freight business. Shares advanced in early trading.
Net income declined to US$507mln, or US$0.52 per share, in the third quarter, from US$509mln, or US$0.51 per share, in the year-ago quarter, the Jacksonville, Florida-based company said in a statement late on Tuesday.
Analysts had on average expected earnings per share of US$0.50, according to Capital IQ estimates.
Revenue fell to US$2.94bn from US$3.2bn in the year-ago quarter. Analysts had expected US$2.97 bn.
U.S. railroads have been working to cut costs, mostly by parking locomotives and furloughing workers, to offset weak demand for commodity freight.
Shares gained 1.9% to US$27.71 at 8:05 a.m. in New York. The stock had closed down 2.3%, expanding this year’s slump to 23%.