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Researched by Industrial Info Resources (Sugar Land, Texas)--Leading U.S. rail operator CSX Corporation (NYSE:CSX) (Jacksonville, Florida) saw mixed but mostly positive results for fourth-quarter and full-year 2013. Volumes steadily grew, based on strength in the Merchandise and Intermodal segments, offsetting harsh winter weather and a sharp decline in coal prices. Net earnings were reported to be $426 million for the quarter, a 5.12% decrease from fourth-quarter 2012, and $1.86 billion for the year, basically unchanged from 2012.
Total revenues stood at $3.03 billion for the quarter, a 4.73% increase from fourth-quarter 2012, and $12.03 billion for the year, a 2.24% increase from 2012. Among the major contributors to the Merchandise sector was the Chemicals business, which saw solid growth from the boom in U.S. shale drilling, increasing crude oil shipments to East Coast refineries. The Agricultural Products business benefited from increased shipments of ethanol and grain; the corn and soybean crop dramatically outpaced last year's, which was badly affected by a major drought in the Midwest. Stronger finished vehicle shipments boosted the Automotive business, and higher domestic steel production boosted the Metals business.
Domestic coal shipments declined as natural gas prices remained low, although coal exports increased. Volumes also declined in the Food & Consumer and Phosphates & Fertilizers businesses, the latter due to weakened fertilizer demand.
Industrial Info is tracking $3.22 billion in active projects involving CSX, including the $107 million construction of an intermodal rail terminal in Salaberry-De-Valleyfield, Quebec. The new intermodal transportation hub, which will be located on an 89-acre site, will feature industrial space and offices to handle 100,000 containers per year. Roxboro Excavation Incorporated (Dorval, Quebec) is serving as the general contractor. The project is expected to be completed in late 2015.
"Operations were resilient, even with the volume increase, and the challenging winter weather at the end of the quarter, as we activated additional resources to keep the network fluid and services high," said Michael Ward, the chairman, president and chief executive officer of CSX, in a conference call.
Capital investments are expected to total about $2.3 billion in 2014. Last year's robust fall harvest shipments are likely to continue well into the first quarter, while the Intermodal segment is expected to be a major driver of CSX's growth in the long term. The strength in North American housing and construction markets also is expected to continue, as well as growth in energy-related markets. However, global coal prices are expected to remain low, which likely will have a detrimental effect on volumes and revenues.
"Our Intermodal business is expected to be the major growth engine for CSX going forward, as we look to further tap into an estimated 9 million-truckload opportunity, which aligns very well with our network by leveraging strong service product, our highway-to-rail (H2R) initiative, and strategic investments in both terminal and network capacity," said Clarence Gooden, the executive vice president of sales and marketing for CSX, in the conference call.
For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.
View Project Report - 300113146
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, 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 $3.03 billion for the quarter, a 4.73% increase from fourth-quarter 2012, and $12.03 billion for the year, a 2.24% increase from 2012. Among the major contributors to the Merchandise sector was the Chemicals business, which saw solid growth from the boom in U.S. shale drilling, increasing crude oil shipments to East Coast refineries. The Agricultural Products business benefited from increased shipments of ethanol and grain; the corn and soybean crop dramatically outpaced last year's, which was badly affected by a major drought in the Midwest. Stronger finished vehicle shipments boosted the Automotive business, and higher domestic steel production boosted the Metals business.
Domestic coal shipments declined as natural gas prices remained low, although coal exports increased. Volumes also declined in the Food & Consumer and Phosphates & Fertilizers businesses, the latter due to weakened fertilizer demand.
Industrial Info is tracking $3.22 billion in active projects involving CSX, including the $107 million construction of an intermodal rail terminal in Salaberry-De-Valleyfield, Quebec. The new intermodal transportation hub, which will be located on an 89-acre site, will feature industrial space and offices to handle 100,000 containers per year. Roxboro Excavation Incorporated (Dorval, Quebec) is serving as the general contractor. The project is expected to be completed in late 2015.
"Operations were resilient, even with the volume increase, and the challenging winter weather at the end of the quarter, as we activated additional resources to keep the network fluid and services high," said Michael Ward, the chairman, president and chief executive officer of CSX, in a conference call.
Capital investments are expected to total about $2.3 billion in 2014. Last year's robust fall harvest shipments are likely to continue well into the first quarter, while the Intermodal segment is expected to be a major driver of CSX's growth in the long term. The strength in North American housing and construction markets also is expected to continue, as well as growth in energy-related markets. However, global coal prices are expected to remain low, which likely will have a detrimental effect on volumes and revenues.
"Our Intermodal business is expected to be the major growth engine for CSX going forward, as we look to further tap into an estimated 9 million-truckload opportunity, which aligns very well with our network by leveraging strong service product, our highway-to-rail (H2R) initiative, and strategic investments in both terminal and network capacity," said Clarence Gooden, the executive vice president of sales and marketing for CSX, in the conference call.
For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.
View Project Report - 300113146
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, 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.
