CSX Reports Strong Gains in Second-Quarter 2010, Cites Improving Economy

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Increased volumes in almost every segment proved to be a boon to rail transportation services company CSX Corporation (NYSE:CSX) (Jacksonville, Florida) in the second quarter of 2010. Earnings and sales showed dramatic improvement, with net earnings reaching $414 million, a 35.74% increase from the same period last year.

Excluding $23 million in earnings from the sale of the company's resort, The Greenbriar, in the second quarter of 2009, earnings this quarter saw a 46.81% increase.

Total sales revenue stood at $2.66 billion, a 21.88% increase from the same period last year. CSX saw a surge in demand from the automotive and energy markets, which most strongly affected the company's chemicals, automotive and metals segments.

"In the second quarter of 2010, an improving economy helped almost all the markets that we serve rebound from the lows experienced last year," said Clarence Gooden, the executive vice president of sales and marketing for CSX, in a conference call. He cited volume growth, core pricing gains, and the impact of higher fuel costs as reflected in the company's fuel surcharge program.

CSX saw gains in sales volumes and revenue in all but one of the company's segments:

• The coal segment reported a volume of 401,000 units, a 6.93% increase from the same period last year, and revenues of $835 million, a 26.13% increase.
• The intermodal segment reported a volume of 538,000 units, a 17.72% increase from second-quarter 2009, and revenues of $304 million, a 6.67% increase.
• The chemicals segment reported a volume of 116,000 units, a 10.48% increase from the same period last year, and revenues of $372 million, a 20.78% increase.
• The phosphates and fertilizers segment reported a volume of 80,000 units, an 8.11% increase from second-quarter 2009, and revenues of $109 million, a 15.96% increase.
• The automotive segment reported a volume of 88,000 units, a 62.96% increase from the same period last year, and revenues of $204 million, an 80.53% increase.
• The emerging markets segment reported a volume of 113,000 units, a 6.6% increase from second-quarter 2009, and revenues of $167 million, a 13.61% increase.
• The agricultural products segment reported a volume of 107,000 units, a 0.94% increase from the same period last year, and revenues of $255 million, a 9.44% increase.
• The forest products segment reported a volume of 65,000 units, a 1.56% increase from second-quarter 2009, and revenues of $150 million, a 12.78% increase.
• The metals segment reported a volume of 65,000 units, a 44.44% increase from the same period last year, and revenues of $140 million, a 60.92% increase.
• The food and consumer segment reported a volume of 25,000 units and revenues of $59 million, both unchanged from second-quarter 2009.

Gooden said that the economic recovery is expected to continue driving growth through the third quarter, which has favorable volume and revenue outlooks, and that CSX is well-positioned to handle continued volume growth.

"U.S. industrial production is expected to grow in excess of 3% through the second half of 2010," Gooden said. "As a result, the outlook for the third-quarter volume and revenue is favorable, as revenue growth is expected across all markets, including coal."

Industrial Info is tracking 18 active CSX projects in the U.S. worth a total of $440 million, including the $42 million upgrade to the Cincinnati freight rail system in Cincinnati, Ohio, which kicked off in March of this year and is set to be completed in December. The project for the 4,000-mile, state-wide system, will include improvements to five finished automobile distribution centers, four intermodal terminals, two locomotive-servicing facilities, nine rail-to-truck transloading facilities, and five rail yards. For more information, visit Industrial Info's North American Industrial Database.

View Plant Profile - 1068193
View Project Report - 10004479

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.