CSX Reports First-Quarter Revenue and Profit Below Expectations
Railroad operator CSX (CSX.O) reported its first-quarter revenue and profit on Wednesday, falling short of Wall Street estimates. While gains in intermodal shipping helped bolster results, declines in coal revenue and fuel surcharges weighed heavily on the overall performance.
The demand for coal has been hindered as consumers increasingly turn to cheaper natural gas for energy needs. However, this trend may shift following recent executive orders signed by U.S. President Donald Trump, aimed at boosting coal production.
“CSX faced operational challenges to start the year, which contributed to first-quarter results that did not meet our expectations,” said CEO Joe Hinrichs in a statement.
During the quarter, intermodal shipping, which utilizes two or more modes of transportation for goods, experienced a 2.1% rise in volume. In contrast, coal volume fell by 8.5%. The company reported revenue of $3.42 billion for the quarter ending March 31, missing analysts’ estimates of $3.47 billion.
As CSX navigates these challenges, it remains to be seen how market dynamics will evolve, particularly concerning coal demand in light of recent government initiatives.
