Two major U.S. railroads reported improved results for the second quarter on Tuesday, with their bottom lines boosted by better revenues from hauling intermodal cargo and automobiles.
CSX had a profit of $512 million in the second quarter, a 1 percent increase over the $506 million earned in the same 2011 period. The company said it had revenue of $3.012 billion, $7 million less than the same period the prior year.
Intermodal revenue was $408 million, up 10 percent from the same 2011 period. It was boosted by both an 8 percent increase in volume and a 2 percent increase in revenue per unit.
Auto revenue was also strong, with revenue of $302 million, a 34 percent increase over the second quarter of 2011. Automobile volumes were up 27 percent and revenue per unit up 5 percent.
Revenues were also up in phosphates and fertilizers, chemicals, metals, and forest products.
CSX, however saw declining revenue in its agriculture, food and consumer, and coal businesses.
"Looking forward, even with the continued headwinds in the utility coal
market, CSX remains on track for earnings growth for the full-year
2012," the company said.
Kansas City Southern (KCS) said it had profit of $120.9 million in the second quarter of 2012, a 69 percent increase over the $71.7 million earned in the same 2011 period.
Revenue was $545.3 million in the quarter, up 2 percent from the $534.9 million recorded in the second quarter of 2011.
KCS said intermodal revenue was $76.4 million in the quarter, up 23 percent from the same 2011 period. The railroad's intermodal business was helped by a 17 percent increase in volume and 5 percent increase in pricing. Automotive revenue was also up 15 percent. - Chris Dupin