CSX Presses On Despite Challenges: Q4 Results Reflect Resilience and Vision for Growth
Despite facing significant challenges throughout 2024, CSX has emerged as a testament to its resilience and commitment to growth. In its recent fourth-quarter earnings call, the company highlighted its ability to adapt to changing markets and operating conditions while remaining focused on customer service.
Citing weaker commodity prices, a bridge collapse, multiple hurricanes, and labor disruptions across North America's supply chain as key challenges faced during the year, CSX CEO Joe Hinrichs acknowledged that "it was different than we planned." However, he proudly noted that the company's ONE CSX team continued to work together to improve its overall business, maintaining momentum despite these hurdles.
Key highlights from the quarter included 2% volume growth for the year, outpacing the industrial economy. The company's leading merchandise business delivered 3% revenue growth, even after absorbing the effects of lower fuel surcharge and soft metals markets. Strong customer service also played a significant role, with customers responding positively to CSX's ability to price according to value delivered.
Operationally, the company took steps to reduce waste, unlock capacity, and improve responsiveness across its network. This included leading the rail industry in reaching early agreements with labor unions on 5-year contracts, working together to value employees, avoid prolonged labor battles, and provide certainty for customers.
In reviewing key metrics for the fourth quarter, CSX noted a 1% increase in total volume compared to last year, driven by 4% growth in intermodal volume. Quarterly revenue declined 4%, primarily due to lower global coal prices and a decline in fuel surcharge. Earnings per share dropped 7% on an adjusted basis, excluding goodwill impairment.
While CSX acknowledged dissatisfaction with these results, the company emphasized its clear vision for future growth, shared at its recent Investor Day. With a commitment to delivering this vision for the benefit of customers, employees, and shareholders, CSX looks forward to 2025 with confidence.
