The advantage of CSX Railroad slipped 14% in the second quarter, even though the amount of shipment was distributed, as it continued to work on two major construction projects on its network.
The railroad at Jacksonville, Florida on Wednesday said it earned $ 829 million, or $ 0.44 per share. It is below $ 963 million, or $ 0.49 per share a year ago.
The fact is that analysts have predicted survey by factset research.
CSX’s latest income report comes as rumors in the industry, as it is likely to merge between two of the two largest cargo railroads in the country. The Associated Press reported last week that the Union Pacific Norfolk was in a merger with Dakshin.
CEO Joe Hinrich said he does not want to comment on rumors and that CSX focuses on improving its operation, but he said that his railroad will be open to any possibilities that would help promote shareholder value.
“When we are confident in the way of CSX, we welcome all the opportunities that will allow us to give value to our shareholders, pursue thoughtful development and serve our customers better,” Hinrich said.
If the merger action is heated in the industry, CSX may be a target for one of the Western railways trying to create a transcontinental network. But the possibilities for any deal between major cargo railroads are uncertain as regulators may be reluctant to approve them.
The CSX is in the midst of expanding a major tunnel in the bucket, so it will be able to carry double-stacked shipping containers, and the railroad is completing the repairs related to Hurricane Helen and Milton.
But Hinrich said that the railroad is running very much in the first quarter of this year when the results were disappointed. The railroad is also restructuring its management jobs.
The CSX is one of the major freight railroads that serve the Eastern United States and compete with Norfolk Southern.
