(Adds details on results, context, updates share price)
July 17 (Reuters) - CSX Corp on Tuesday posted quarterly profit that topped Wall Street's target after the No. 3 U.S. railroad operator continued to benefit from its drive to cut costs and boost efficiency.
CSX shares jumped 3.2 percent to $66.49 in extended trading after the company also raised its 2018 revenue forecast, citing strength in its coal business.
Second-quarter net income rose to $877 million, or $1.01 per share, from $510 million, or 55 cents per share, in the year-ago period that included a $115 million restructuring expense.
Analysts, on average, had expected earnings of 87 cents in the latest quarter, according to Thomson Reuters I/B/E/S.
Jacksonville, Florida-based CSX spent 36 percent more on fuel in the latest quarter, but costs fell due to job cuts and other expense controls.
Revenue for the second quarter grew 6 percent over the prior year to $3.1 billion.
Total volumes rose 2 percent as increases in coal and forest products more than offset declines in fertilizers and agricultural and food products.
Operating ratio, which measures operating expenses as a percentage of revenue and is a closely watched gauge of railroad performance, fell more than expected to 58.6 percent from 67.4 percent in the year-earlier quarter. CSX had aimed to lower the ratio to 60 percent by 2020.
CSX forecast 2018 revenue growth in the mid-single-digit percentage range, versus its prior call for a slight uptick. (Reporting by Lisa Baertlein in Los Angeles; Editing by Richard Chang)