CSX Corp. Reports Fourth-Quarter Loss
Jan. 27, 2004
JACKSONVILLE, Fla. (AP) _ CSX Corp. reported Tuesday that its fourth-quarter earnings fell about 10 percent, mainly on a restructuring charge stemming from the planned firing of up to 1,000 managers.
In the three months ended Dec. 26, the railroad and transportation company posted earnings of $123 million, or 57 cents per share, compared to $137 million, or 64 cents a share, a year earlier. The quarter included a restructuring charge of $7 million, which decreased earnings by 4 cents a share.
Excluding the charge, earnings were $130 million, or 61 cents per share. That beat the average estimate of analysts by a penny per share, according to Thomson First Call.
Revenues for the quarter were $1.95 billion, down from $2.06 billion a year earlier. The prior year included revenue of $189 million from an affiliated company that CSX no longer owns.
CSX said in November that the layoffs will cost $60 million to $80 million, which would be charged over six months.
Chairman and chief executive Michael J. Ward said that revenues for the company's core surface transportation units were strengthening on a recovering economy.
``However, because these positive trends were offset by continued high operational costs, we remain keenly focused on improving our cost structure and restoring our higher service levels that we've seen in the recent past,'' Ward said.
CSX, based in Jacksonville, owns one of the largest rail networks in the United States.
CSX Transportation Inc., and its 34,000 employees provide rail transportation services over a 23,000 route-mile network in 23 states, the District of Columbia and two Canadian provinces. CSX Corp. also provides container terminal operations through other subsidiaries.
CSX shares fell 49 cents to $35.38 in trading Tuesday on the New York Stock Exchange.
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CSX Corporation: http://www.csx.com