April 16 (Reuters) – CSX, a major railroad operator, reported lower-than-expected revenue and profit for the first quarter on Wednesday. The company’s performance was impacted by a decline in coal revenue and fuel surcharge, despite a rise in intermodal shipping.
The demand for coal has been reduced as consumers increasingly switch to cheaper natural gas for energy. However, this trend may reverse following U.S. President Donald Trump’s recent executive orders aimed at boosting coal production.
“We faced operational challenges at the start of the year, which led to first-quarter results that did not meet our expectations,” said CEO Joe Hinrichs in a statement.
Intermodal shipping, which involves the use of multiple transportation methods for goods, saw a 2.1% increase in volume. Meanwhile, coal shipments fell by 8.5%.
CSX reported $3.42 billion in revenue for the quarter ending March 31, falling short of analysts’ expectations of $3.47 billion, according to data from LSEG.
The company posted a profit of 34 cents per share, below the expected 37 cents per share. CSX’s operating margin dropped to 30.4%, compared to 36.3% in the same period last year.
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