CSX, Kansas City Southern Q1 sales grow, but KCS profit off 28.9pc
AMERICAN Class I railways CSX and Kansas City Southern both reported first-quarter growth in revenue and profit
AMERICAN Class I railways CSX and Kansas City Southern both reported first-quarter growth in revenue and profit.
CSX first quarter net profit increased 20 per cent year on year to US$834 million, drawn on revenues of $3.01 billion, up five per cent.
The Kansas City Southern suffered a 28.9 per cent decline in first quarter profit to $103 million, drawn on revenues of $675 million, up six per cent.
CSX merchandise revenue rose six per cent to $1.8 billion and was led by the chemical segment's $586 million in revenue. Agricultural and food products improved revenue by 12 per cent to $244 million and forest products boosted revenue 11 per cent to $216 million.
CSX coal volumes grew five per cent and revenue climbed seven per cent to $538 million, but intermodal sales declined five per cent to $428 million.
Kansas City Southern (KSC) intermodal volumes fell nine per cent and another eight per cent in automotive and three per cent in industrial and consumer products. Also blamed for declines were service interruptions due to teacher protests in Lazaro Cardenas, Mexico.
A 21 per cent revenue increase was posted in chemicals and petroleum to $168.6 million. Agriculture and minerals increased revenue by eight per cent to $122.9 million, energy by five per cent to $64.4 million and industrial and consumer products by two per cent to $149.8 million.