Dow Transportation component CSX, often considered an economic weather vane, reported third quarter earnings of $0.94 a share for continuing operations, a 40 percent increase over last year.
“It’s really a combination of three things: we’re continuing to see good pricing vibrancy, our productivity is good and while shipments are down somewhat, they’re being offset by...pricing increases,” said Michael Ward, CSX president and CEO.
The rail company is predicting a 35 percent year-over-year increase in EPS in the fourth quarter, and it predicts its full-year earnings will come in at the low end of its previous range of $3.65 to $3.75. CSX is targeting compound annual growth of 20 to 25 percent through 2010.