CSX Corporation reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing by 7% to $3.423 billion, down from $3.681 billion in the same period last year. The company's operating income also fell significantly, dropping 22% to $1.041 billion compared to $1.337 billion in the first quarter of 2024. This resulted in a decrease in earnings per diluted share, which fell to $0.34 from $0.45, marking a 24% decline year-over-year. The operating margin also contracted, decreasing by 590 basis points to 30.4%.
The decrease in revenue was attributed to several factors, including lower coal revenue, reduced fuel recovery, and declines in merchandise volume. Notably, coal revenue fell sharply, contributing to the overall revenue decline. However, the company did see some offsetting factors, such as higher pricing in merchandise and increased intermodal volume. The overall expenses for the quarter increased by 2% to $2.382 billion, driven primarily by higher costs associated with labor and purchased services, which were impacted by inflation and network disruptions.
In terms of operational metrics, CSX reported a slight decrease in carload volumes, with total revenue ton-miles declining by 1% to 47.8 billion. The company also experienced a 3% decrease in train velocity and a 19% increase in dwell time, indicating challenges in operational efficiency. Despite these challenges, safety performance improved, with a 22% reduction in the personal injury frequency index compared to the previous year.
Looking ahead, CSX plans to maintain its capital investment strategy, with projected expenditures for 2025 expected to be around $2.5 billion. This includes significant investments in rebuilding infrastructure affected by Hurricane Helene, with costs anticipated to exceed $400 million. The company remains committed to enhancing operational efficiency and safety while navigating the challenges posed by market conditions and operational disruptions. CSX's management expressed confidence in the company's ability to adapt and continue delivering value to shareholders, supported by a robust liquidity position and ongoing strategic initiatives.
About CSX CORP
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