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CSX Q3 Profit Falls on Goodwill Write-Down, Operations Show Early Gains Under New CEO

Steve Angel signals emphasis on the core franchise with readiness for strategic options.

Overview

  • CSX reported net earnings of $694 million, or $0.37 per share, down 22% year over year after a $164 million goodwill impairment tied to Quality Carriers.
  • Adjusted earnings were $0.44 per share, slightly topping the roughly $0.43 consensus, with adjusted operating income of $1.25 billion.
  • Revenue slipped 1% to $3.59 billion as intermodal volumes rose but export coal weakness drove an 11% coal revenue decline.
  • Quarterly volume increased 1% to 1.61 million units and key service metrics improved after completion of the Howard Street Tunnel and Blue Ridge projects.
  • On his first earnings call as CEO, Steve Angel prioritized strengthening CSX’s base business and left the door open to deals as the industry weighs the proposed $85 billion Union PacificNorfolk Southern merger under STB review, with BNSF and CPKC stating no interest in merging.