CSX Forecasts Revenue to Decline Up to 2% This Year -- Commodity Comment
17 July 2019 - 7:40AM
Dow Jones News
By Micah Maidenberg
CSX Corp. released second-quarter results on Tuesday, reporting
that revenue declined 1% compared with the year earlier to $3.06
billion, a figure that fell short of the $3.14 billion analysts
polled by FactSet predicted.
For the year, the company said it expects revenue to fall 1% to
2%, saying the outlook reflects its "cautious forecasting approach
given economic uncertainty."
Here are some of the commodities CSX said helped and hurt its
performance in the latest quarter, according to an investor
presentation:
On the chemicals market:
The company reported gains in this market "as stronger crude oil
and waste shipments were partially offset by reduced fly ash,
natural gas liquids and sand volumes." Revenue from chemicals rose
1% compared to last year.
On agriculture and food:
Agricultural and food products growth was "driven by strength in
domestic grain and ethanol markets." Revenue jumped 9%.
On the lumber market:
Forest products were "led by high demand for wood pulp and
stronger lumber shipments." Revenue gained 4%.
On minerals:
Strength in minerals was "driven by increased construction and
paving project activity." Revenue increased 5%.
On fertilizers:
Fertilizers were "negatively impacted by wet weather conditions
delaying fertilizer applications." Revenue was flat.
Coal:
"Coal revenue decreased, as growth in domestic industrial
markets was more than offset by export and utility declines."
Overall, revenue dropped 2%.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 16, 2019 17:25 ET (21:25 GMT)
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