JACKSONVILLE -- The Florida Times-Union reports that CSX Transportation will tighten its budget belt by letting 1,300 to 1,500 jobs that are expected to be vacated company-wide this year go unfilled, its president said Monday after announcing a modest 1 percent increase in first-quarter revenue.

Michael Ward said the company has already let 670 jobs remain unfilled since the beginning of year instead of cutting positions as other railroads have done. He said the job eliminations are caused by "natural attrition."

CSXT has about 4,100 employees in Jacksonville and 35,000 total, but the unfilled positions will be company wide, Ward said.

Competing railroads Norfolk Southern and Union Pacific Corp. announced large layoffs earlier this year because of lower revenue and decreased earnings. First-quarter earnings for Norfolk Southern are expected to be announced tomorrow; Union Pacific on Thursday.

Ward said the coal business has risen because there was a low inventory going into the winter, which turned out to be colder than normal. The demand has remained steady as plants that generate electricity are using coal as natural gas prices skyrocket, he said.

Ward was pleased with first-quarter earnings results in light of the slowing economy, higher diesel fuel prices and a 20 percent drop in the railroad's automotive business.

CSXT's first-quarter revenue rose $17 million to $1.532 billion, up 1 percent from $1.515 billion during the same period a year ago. The increase was attributed to more coal business (up 12 percent) and agricultural products (up 10 percent) compared to last year's figures.

"Considering the economy, we're very pleased coming in $17 million in the positive," Ward said. "It's pretty darn good."

Officials at competitor Union Pacific have said their coal business has risen 12 percent and they're pleased with Wall Street estimates of first-quarter earnings.

CSX Corp., CSXT's parent company, reported first-quarter net earnings of $20 million, or 10 cents per diluted share yesterday. The figures compare with $29 million or 14 cents per share, during the same period last year.

The coal business and various cost-cutting measures partially made up for higher diesel prices and the flagging economy, said John W. Snow, CSX chairman and chief executive officer.

"In a period marked by a weakening economy and sharply higher year-to-year fuel prices, we operated a much more fluid, efficient rail network resulting in lower overall costs," Snow said in a news release.

As long the economy doesn't take a nosedive, Ward said he expects a stronger second quarter with cost-cutting measures combined with higher prices based upon better service.

"This is a continuum," he said. "We've been in a turnaround situation for the last year."

In the past year, the company's stock has mostly hovered in the $20-a-share range, well off the mid-$50s range it had going in parts of 1998. Yesterday, it closed at $33.16, down $2.11 cents on the day.

CSX Corp. is based in Richmond, Va. The railroad is the largest on the East Coast, covering 23 states.