Railway operator CSX (CSX) said second-quarter profit increased 47% or $414 million from the previous quarter. CSX had predicted a 96 cents a share increase, but exceeded expectations with the $1.07-a-share increase.
In the Monday afternoon announcement, CSX said it had a 22% increase in revenue, pushed by an improving economy and higher prices.
Revenue growth and continued operating income drove all-time record financial results, including operating income of $768 million, up 33% from second quarter of 2009. Along with Alcoa's (AA) much anticipated results, the CSX report kicked off a much-anticipated earnings season that investors are hoping will help stabilize the markets.
"Our Outlook Remains Positive"
Jacksonville, Fla.-based CSX, the third-largest railroad in the U.S., benefited from increased shipping volume due to more spending and manufacturing. The company has taken a series of cost-saving measures over the past several years which are now starting to show up in its bottom line.
In April, CSX said it expected double-digit earnings growth through 2010.
"While the economy remains dynamic, our markets overall continue to improve, and our outlook remains positive," said Michael J. Ward, chairman, president and CEO of CSX. "At the same time, CSX has demonstrated that it can be successful in a wide array of economic conditions, and that's what we will continue to do."
CSX shares ended the day trading more than $20 a share higher than their 52-week low.
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