How Does CSX Corporation Generate Its Revenues?

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CSX Corporation (NYSE: CSX) generates its revenues primarily from various commodities freight, clubbed under three key segments: Merchandise, Coal, and Intermodal. Look at our interactive dashboard analysis ~ CSX Corporation’s Revenues: How Does CSX Corporation Make Money? ~ for CSX Corporation’s business model. In addition, you can see more of our data for industrial companies here.

CSX Corporation’s Business Model

  • What Need Does CSX Corporation Address?
    • CSX Corporation is engaged primarily in freight transportation in the Southeast, East, and Midwest regions of the U.S.
    • CSX’s rail network is over 21,000 route miles, and it serves many large population centers in 23 states.
  • Who Pays To CSX Corporation?
    • Chemical producers, industrial manufacturers, agricultural companies, coal, oil & gas, and mining companies, steel processors, and automotive companies pay to CSX Corporation to carry their goods.
  • What Are The Alternatives To CSX Corporation? 
    • CSX Corporation’s competitors include trucking companies, along with other railroad companies, such as Norfolk Southern, BNSF Railway, and Union Pacific.
  • What Are CSX Corporation’s Competitive Advantages?
    • CSX Corporation has access to all major assembly plants in eight states.. Also, the majority of the U.S. steel production is located in CSX territory.

CSX Corporation’s Revenues Have Grown In Mid-Single-Digits Over The Last Two Years, And We Expect The Growth Rate To Slow Over The Next Few Years

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  • CSX Corporation’s revenues have grown from about $11.1 billion in 2016 to about $12.2 billion in 2018. The revenues could grow to $13.5 billion in 2021.
  • CSX Corporation generates its revenues primarily from various commodities freight, clubbed under three key segments : Merchandise, Coal, and Intermodal.
  • Merchandise segment includes revenues from the shipment of merchandise commodities, including agriculture, metals, paper, chemicals, and automotive related goods.
  • Coal segment includes domestic and export coal shipments.
  • Intermodal refers to the shipment of containers that can be moved from one form of transport to another.

CSX Corporation’s Revenue Growth Has Been Primarily Led By Better Pricing, And This Trend Will Likely Continue In The Near Term

  • CSX Corporation’s total number of carloads volume increased slightly from 6.45 million in 2016 to 6.48 in 2018. It can grow to 6.70 million by 2021, led by higher merchandise shipments.
  • Average revenue per carload grew from $1,716 in 2016 to $1,890 in 2018, and it can grow to north of $2,011 in 2021.

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