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Railroad operator CSX Corp. said Tuesday second-quarter earnings fell almost 17 percent from a year earlier, when the company saw a gain from insurance recoveries related to Hurricane Katrina.
Net income declined to $324 million, or 71 cents a share, from $390 million, or 83 cents a share, a year earlier, the company said.
Revenue rose almost 5 percent to a record $2.35 billion in the quarter from a year earlier, CSX said.
Analysts surveyed by Thomson Financial expected earnings of 64 cents per share on revenue of $2.53 billion.
The company said higher prices “drove revenue-per-unit gains of 7 percent,” even as sales volume declined 2 percent from last year. The decrease in number of sales reflects “continued softness in the housing- and automotive-related sectors of the economy,” the company said in its release.
The company also reported that in the second quarter that it repurchased $548 million of its common stock as part of its $3 billion stock repurchase program. In 2007, the company has repurchased $727 million and expected to complete the program by the end of 2008.
CSX also announced a 25 percent increase in the company’s quarterly dividend to 15 cents per share, payable to shareholders in September.
“We are pleased with the value we are creating for our shareholders on a sustained basis,” said Michael Ward, chairman, president and chief executive. “In the three years ending June 30, the value of CSX stock nearly tripled from $16.39 to $45.08, placing our growth among the top 5 percent of all stocks in the S&P 500.”
CSX stock was up 69 cents a share to $49.21 in after hours trading after closing down 23 cents in regular trading Tuesday.
CSX Corporation, based in Jacksonville, operates the largest rail system in the Eastern United States. Its transportation network spans 21,000 miles with service to 23 states and the District of Columbia.