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CSX (NASDAQ:CSX) experienced a downturn in shares following Wednesday’s close, as the rail operator’s profits dropped from the previous year due to decreased fuel surcharges, lower coal prices, and a decline in trucking revenue.
The total revenue of $3.68 billion for Q4 saw a 1% decrease from the same quarter last year, but surpassed the Street’s estimate by $50 million. Revenue derived from a fuel surcharge declined to $334 million from $406 million, while trucking revenue dipped $22 million compared to the previous year.
Although the profit of $0.45 per share exceeded expectations by a penny, it was 4 cents less than the previous year. This decline was attributed to higher labor costs, inflation, and purchased services.
As of December 31, the company holds cash and cash equivalents of $1.35 billion, down from $1.96 billion last year.
“Our railroad is running well, we have the right team and resources in place, and we look forward to building on our positive momentum with profitable growth over this next year,” stated CSX chief executive Joe Hinrichs.
Following the news, CSX shares tumbled by 2.5%.
