CSX Transportation extended its strong pricing power into the fourth quarter, giving the freight railroad a $457 million net profit to close a year that saw earnings grow strongly despite diminishing demand.
The fourth quarter profit was 6.3 percent ahead of the fourth quarter the year before and CSX’s revenue expanded 5 percent to $2.95 billion despite a 4 percent decline in volume. The Jacksonville, Fla.-based Class I said revenue per shipping unit rose 9 percent to $1,823.
CSX said full-year profit rose 16.6 percent year-over-year to $1.8 billion while volume fell 4 percent in the same period. The company’s annual revenue grew 5 percent to $11.8 billion in the same period.
“Our performance in 2011 has set a strong foundation for growth, and CSX remains committed to achieving a 65 percent operating ratio by no later than 2015,” said CSX Chairman, President and CEO Michael Ward.
CSX’s operating ratio improved to 70.9 percent in 2011, from 71.9 percent in the previous year.