CSX earnings up despite reduced coal shipments - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Despite weakness in the utility coal market, CSX Corp. on Tuesday, July 17, announced second quarter net earnings of $512 million vs. $506 million in the second quarter last year.

For the first six months, the company reported net earnings of $961 million, up from $901 million.

"CSX delivered its 10th straight quarter of year-over-year earnings growth despite significant headwinds in its utility coal business," Michael J. Ward, chairman, president and CEO, said in the earnings release. "The company continues to perform well across a wide range of economic and market conditions."

Total revenue and volume were essentially flat when compared to the same period last year, as increased shipments of export coal, intermodal and automotive products helped offset declines in utility coal, the release said.

Domestic shipments of utility coal on the CSX system declined in the second quarter to 16.9 million tons, down from 26.8 million tons last year. Shipments of nonutility coal also fell, from 4 million tons to 3 million. Export tonnage increased from 10.4 million tons in last year's second quarter to 14.7 million tons this year.

Six-month totals for domestic utility coal showed a 32 percent decline, from 54.9 million tons last year to 37.1 million tons this year. Nonutility domestic shipments fell to 5.3 million tons from 6.5 million. Export tonnage was up, from 21.1 million tons last year to 27.2 million this year.

Revenue from coal was down 14 percent both in the quarter and in the year to date.

"Shipments of utility coal declined primarily driven by low natural gas prices and utility stockpiles above target levels. This decrease was partially offset by higher export shipments of U.S. thermal coal," CSX said in its earnings release.

"Looking forward, even with the continued headwinds in the utility coal market, CSX remains on track for earnings growth for the full-year 2012."

Norfolk Southern Corp., the other major rail coal hauler in West Virginia, plans to release its second quarter earnings report the afternoon of July 24.