Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Rail operator CSX Corporation (NYSE:CSX) (Jacksonville, Florida) reported mostly positive results for second-quarter 2013, as volumes and prices trended upward and growth in the Merchandise and Intermodal segments offset continuing declines in coal volumes. Net earnings were reported to be $535 million, a 4.49% increase from second-quarter 2012.
Total revenues stood at $3.07 billion, a 1.89% increase from the same period last year. Shipments of domestic coal increased due to higher demand, partly a result of natural gas price increases, but export shipments declined, especially for thermal coal, as demand weakened in Europe and competition from other countries strengthened. Shipments of feed grain, soybeans and ethanol also declined following last year's drought, while metal volumes decreased due to lower shipments of sheet steel, and military and machinery shipments were diminished by government budget cuts.
However, these factors were offset by stronger energy-related shipments, liquefied petroleum gas, frac sand and crude oil, which was influenced by stronger drilling activity in shale areas. Fertilizer volumes were boosted by increased applications by farmers, following low crop inventories and higher crop prices. Stronger North American light vehicle production boosted automotive business, and a recovering U.S. construction market boosted the forest products and minerals businesses. Highway-to-rail conversions partly drove domestic volume growth in the Intermodal segment.
Industrial Info is tracking $1.88 billion in active projects involving CSX, including the $107 million construction of an intermodal rail terminal in Salaberry-De-Valleyfield, Quebec. The project involves building a new intermodal transportation hub on an 89-acre site, including warehouse space, industrial space and offices, to handle 100,000 containers per year. The project is expected to be completed in the final quarter of 2015.
"On the revenue side, we were encouraged by the solid growth across many of our markets, offsetting the ongoing challenges in coal," said Michael Ward, the chairman, president and chief executive officer of CSX, in a conference call. "Overall revenue was up slightly on 1% volume growth, combined with the team's ability to drive solid core pricing for the service values CSX is providing. At the same time, we continue to deliver consistently high performances in safety, service and efficiency in the face of a broad range of economic and market conditions that continue to be dynamic."
CSX executives have a mostly positive outlook for the third quarter. Although domestic coal volumes are expected to decline between 5% and 10% for the year, and export demand for thermal coal is expected to remain weak, stronger crop yields are predicted to boost volume growth, as is domestic drilling activity and continuing recovery in the U.S. housing sector. Metals markets are expected to stabilize before the end of the year, and light vehicle production is expected to increase.
"Looking at the third quarter, growth is expected in the industrial sector, driven by ongoing opportunities in chemicals, particularly in commodities related to oil and gas drilling," said Clarence Gooden, the executive vice president of sales and marketing for CSX, in the conference call. "The automotive market will also remain strong."
For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info'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.
Total revenues stood at $3.07 billion, a 1.89% increase from the same period last year. Shipments of domestic coal increased due to higher demand, partly a result of natural gas price increases, but export shipments declined, especially for thermal coal, as demand weakened in Europe and competition from other countries strengthened. Shipments of feed grain, soybeans and ethanol also declined following last year's drought, while metal volumes decreased due to lower shipments of sheet steel, and military and machinery shipments were diminished by government budget cuts.
However, these factors were offset by stronger energy-related shipments, liquefied petroleum gas, frac sand and crude oil, which was influenced by stronger drilling activity in shale areas. Fertilizer volumes were boosted by increased applications by farmers, following low crop inventories and higher crop prices. Stronger North American light vehicle production boosted automotive business, and a recovering U.S. construction market boosted the forest products and minerals businesses. Highway-to-rail conversions partly drove domestic volume growth in the Intermodal segment.
Industrial Info is tracking $1.88 billion in active projects involving CSX, including the $107 million construction of an intermodal rail terminal in Salaberry-De-Valleyfield, Quebec. The project involves building a new intermodal transportation hub on an 89-acre site, including warehouse space, industrial space and offices, to handle 100,000 containers per year. The project is expected to be completed in the final quarter of 2015.
"On the revenue side, we were encouraged by the solid growth across many of our markets, offsetting the ongoing challenges in coal," said Michael Ward, the chairman, president and chief executive officer of CSX, in a conference call. "Overall revenue was up slightly on 1% volume growth, combined with the team's ability to drive solid core pricing for the service values CSX is providing. At the same time, we continue to deliver consistently high performances in safety, service and efficiency in the face of a broad range of economic and market conditions that continue to be dynamic."
CSX executives have a mostly positive outlook for the third quarter. Although domestic coal volumes are expected to decline between 5% and 10% for the year, and export demand for thermal coal is expected to remain weak, stronger crop yields are predicted to boost volume growth, as is domestic drilling activity and continuing recovery in the U.S. housing sector. Metals markets are expected to stabilize before the end of the year, and light vehicle production is expected to increase.
"Looking at the third quarter, growth is expected in the industrial sector, driven by ongoing opportunities in chemicals, particularly in commodities related to oil and gas drilling," said Clarence Gooden, the executive vice president of sales and marketing for CSX, in the conference call. "The automotive market will also remain strong."
For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info'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.
