CSX 4Q profit rises as business, productivity offset fuel costs

JACKSONVILLE, Fla. -- Railroad operator CSX Corp. said Tuesday its profit rose more than 5 percent in the fourth quarter, as expanding business and productivity increases offset sharply higher costs for fuel.

CSX said it reported net earnings of $365 million, or 86 cents per share, in the three months ended Dec. 28 compared to a year-earlier profit of $347 million, or 75 cents per share. The most recent quarter included a 1-cent-a-share gain on insurance. Revenue rose to $2.58 billion from $2.4 billion a year ago.

Analysts polled by Thomson Financial on average expected earnings per share of 64 cents.

"Our performance has generated significant shareholder value and has led to the highest share price gain of any major North American railroad in the past three years," said Michael Ward, chairman, president and CEO.

The company's surface transportation businesses reported a 26 percent increase in operating income to a record $2.2 billion, adjusting for insurance gains and other items. Revenues for the unit exceeded $10 billion for the first time in the company's history.

The Jacksonville-based company said it was also helped by improved safety, which let it adjust its reserves for personal injury.

CSX provides rail and other transportation services. Its rail network spans 21,000 miles in 23 eastern states and the District of Columbia. It also connects to more than 70 ocean, river and lake ports.