By Micah Maidenberg
CSX Corp. reported third-quarter results that were better than in the second period, but the railroad company still has a ways to go to recover from the economic downturn caused by the Covid-19 pandemic lockdowns.
Despite that challenge, the Jacksonville, Fla.-based company said Wednesday its board authorized spending an additional $5 billion on share repurchases. That adds to $1.1 billion CSX currently has available for buybacks.
The railroad company focused on parts of the Northeast, the Midwest and the South reported a quarterly profit of $736 million, or 96 cents a share, down from $856 million, or $1.08 a share, for the year-earlier period.
Analysts expected 92 cents a share in earnings for the latest period, or 93 cents a share following adjustments.
Revenue for the third quarter fell 11% year over year to $2.65 billion, CSX said. Analysts had forecast $2.67 billion for the third quarter.
During the second quarter, CSX reported a profit of 65 cents a share on $2.26 billion in revenue, according to FactSet.
Railroads have been hurt as the coronavirus pandemic rippled through the industrial sector and consumer economy, dampening demand for all manner of goods.
CSX said coal-related revenue dropped 36% in the third quarter compared with last year. Revenue from metals and related equipment shipments slid 18%, while those for automotive products fel 9%. Intermodal revenue was flat year over year.
Write to Micah Maidenberg at email@example.com
(END) Dow Jones Newswires
October 21, 2020 16:33 ET (20:33 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.