CSX Plans More Cuts in Response to Slower Freight Volume
CSX railroad plans to continue cutting costs this year to deal with slowing freight volume and declining profits.
Executives at the Jacksonville, Florida based railroad discussed their outlook Wednesday – one day after reporting a 19 percent drop in first quarter profit.
CSX says it reduced expenses by about $270 million in the quarter, and plans additional cuts through the year.
CSX said coal demand remains anemic, and it expects to haul roughly 25 percent less coal this year. The strong U.S. dollar and weak commodity prices are hurting other shipments.
But the railroad still expects the economy to continue growing slowly.
CSX Corp. earned $356 million, or 37 cents per share, on $2.62 billion revenue in the first quarter.
In trading Wednesday, CSX shares rose $1.05, or 4.2 percent, to $26.04.
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