CSX Corp. on Wednesday reported slightly higher third-quarter earnings per share, beating analysts’ forecasts which were projecting a slight decline.
The Jacksonville-based railroad company said earnings grew by 3 cents a share to $1.08 in the quarter. The consensus forecast of analysts was for earnings to drop to $1.01 a share, according to Zacks Investment Research.
Revenue fell 5% in the quarter to $2.98 billion, as declines in coal and intermodal freight volumes offset an increase in shipments of merchandise.
However, earnings rose because expenses fell by 8% in the quarter.
CSX’s operating ratio (operating expenses divided by revenue) fell from 58.7% in last year’s third quarter to 56.8% this year, a record low.
The company has been targeting its operating ratio as a key metric of its efficiency on its rail network throughout the Eastern U.S.
CSX reduced its staff during the quarter by almost 400 to 21,158.