(Reuters) – U.S. rail operator CSX (NASDAQ:) reported first-quarter profit on Wednesday above Wall Street estimates, helped by higher intermodal volumes and demand for coal exports that sent its shares up 2% after the close. bidding
The Jacksonville, Florida-based company’s net income fell to $893 million, or 46 cents per share, in the quarter ended March 31 from $987 million, or 48 cents per share, a year earlier.
However, the company barely beat expected earnings of 45 cents per share, according to LSEG.
Revenue fell 1% to $3.68 billion, but was slightly above analysts’ average expectations of $3.67 billion.
The year-over-year decline was driven by lower fuel surcharges, lower freight revenues and lower export coal prices, which offset higher commodity prices and higher intermodal and coal volumes.
The company reported quarterly sales of 645,000 units, down slightly from 647,000 units a year ago. Total coal supplies rose 2% to 21.2 million tons, while domestic supplies fell 17% amid replenishment of energy supplies and lower prices.
Harsh winter weather and the recent collapse of the key Francis Scott Bridge in Baltimore have created infrastructure and operational challenges for railroads as they continue to operate amid extended freight shutdowns.
Earlier this month, CSX said it was launching a new freight rail service between Baltimore and New York to circumvent the closure of the Port of Baltimore following the bridge collapse.
The company also said its existing coal customers should expect “potential supply delays” following the accident, and added that it plans to keep the Curtis Bay coal jetty, which is located near the accident site, operational.
The company’s operating margin for the quarter was 36.8%, down 2.7% from a year earlier.
CSX competitor on the east coast Norfolk Southern (NYSE:) plans to report first-quarter results on April 24.