JACKSONVILLE, Fla. — CSX expects to gain merchandise, intermodal, and export coal volume this year partly due to improved service, executives said today while announcing fourth-quarter financial results.
“Throughout 2023, our railroad demonstrated reliable, industry-leading network performance, and the ONE CSX team delivered consistent results through a dynamic economic environment by focusing on excellent customer service,” CEO Joe Hinrichs said. “Our railroad is running well, we have the right team and resources in place, and we look forward to building on our positive momentum with profitable growth over this next year.”
CSX expects low to mid single-digit volume and revenue growth this year and will increase its capital spending to $2.5 billion, up from $2.3 billion in 2023.
For the quarter, higher costs ate into CSX’s profits. The railroad’s operating income declined 10%, to $1.3 billion, as revenue declined 1%, to $3.6 billion. Earnings per share declined 8%, to 45 cents. CSX’s operating ratio increased 3.2 points, to 64.1%.
Overall volume increased 1% for the quarter. Merchandise traffic grew 3%, intermodal volume was flat, and coal traffic was up 3%.
Key operational metrics improved, with average train speed up 5% and terminal dwell down by 7%. Intermodal trip-plan compliance, a measure of on-time performance, was 95%, up 2 points from a year ago, while merchandise trip-plan compliance improved 8 points, to 85%.
CSX’s personal injury and train accident rates both improved for the quarter and the full year.
Is Soroban waiting in the wings?