CSX’s Q2 2016 Earnings Review: Lower Shipment Volumes And Fuel Surcharge Revenue Negatively Impact Results
CSX’s earnings per share declined 16% year-over-year in Q2 2016 as a result of a decline in revenue primarily due to lower shipment volumes, particularly coal shipments, and lower fuel surcharge revenue. Weak demand for coal from utilities as a result of soft natural gas prices drove down the company’s coal shipments, and lower oil prices this year translated into lower fuel surcharge revenue. Though CSX’s cost reduction initiatives and lower volume-related operating expenses partially offset the impact of top line headwinds on the operating ratio (operating expenses as a percent of revenue), the net impact was a 210 basis point deterioration in this metric of profitability.
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Have more questions about CSX? See the links below.
- What Is CSX’s Revenue And EBITDA Breakdown?
- What Is CSX’s Fundamental Value Based On 2015 Results?
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- How Will CSX’s Revenue Composition Change By 2020?
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- CSX: A Look Back At The Year 2015
- CSX’s Q1 2016 Earnings Preview: Decline In Shipment Volumes And Fuel Surcharge Revenue To Negatively Impact Results
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