CSX Profit Falls on Charge, Meets Expectations

U.S. railroad CSX reported a lower quarterly net profit on Tuesday due to a charge related to its investment in the Greenbrier resort in West Virginia, but said its freight prices had largely offset a 10 percent decline in rail freight volumes.

The Jacksonville, Florida -based company reported fourth-quarter net income of $247 million or 63 cents a share, compared with $365 million or 86 cents a share a year earlier.

Excluding a charge of 27 cents related to the Greenbrier, which has seen its business fall off rapidly due to the slowing of the U.S. economy, CSX earned 90 cents a share.

That compares with analyst expectations of 90 cents a share, according to Reuters Estimates.

The company pre-announced results last week and said it would not be providing a long-term outlook.

CSX reported revenue of $2.67 billion in the fourth quarter, compared with $2.58 billion a year earlier.

Rail freight volumes were down 10 percent in the quarter compared with the same period in 2007.

"The company finished 2008 in a strong financial position and began taking aggressive actions in the quarter as the intensifying global recession dramatically impacted our business," Chief Executive Michael Ward said in a statement.

Like the other major U.S. railroads—Union Pacific , Burlington Northern Santa Fe and Norfolk Southern —CSX has reported robust profits in recent quarters due to strong pricing, despite falling freight volumes as the U.S. economy has weakened.

But analysts have warned that the railroads may not be able to maintain that pricing power if the United States remains in a prolonged economic slump.

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