JACKSONVILLE, Fla. -- CSX Corp., the parent company of
Jacksonville's CSX Transportation reported yesterday a
fourth-quarter 2001 profit of $65 million, or 31 cents per share, up
from $54 million, or 26 cents per share, the previous year,
according to the Florida Times-Union.
CSX posted the 20
percent gain in net income despite a slowing economy and a $37
million expense incurred by the company as part of the settlement of
a lawsuit involving a 1987 chemical tank car fire in a New Orleans
switching yard. Excluding the after-tax expense of the settlement,
CSX's income for the quarter was $102 million, or 48 cents per
share.
CSXT operates the third-largest railroad in the United
States. The latest three-month period was the seventh consecutive
quarter CSXT has reported earnings exceeding the previous year's
earnings.
Despite the recession, surface transportation,
which includes the rail and intermodal units, had its strongest
earnings since the first quarter of 1999. Operating income was $246
million, excluding the litigation provision, up from $205 million in
the fourth quarter of 2000.
Decreased revenue and carloads
were offset by cost cuts and lower fuel expenses, according to a CSX
news release. During 2000, CSX was hurt by lingering delays and
congestion after the company and Norfolk Southern Corp. divided
Conrail Inc. in 1999. But the company has been improving its
operations since then, CSXT President Michael J. Ward said.
"With service at much higher levels, we now have a
compelling transportation product to sell and the entire
organization is geared up for growth," he said. "The railroad
operated at well below capacity in 2001. The track infrastructure,
locomotive and car fleets are in good shape, and we are continuing
to find ways to utilize these assets more efficiently."
The
recession and the slowdown in business following the events of Sept.
11 drove down chemicals, autos, metals, paper, minerals and
intermodal revenue for the quarter, but coal remained
solid.
For 2001, CSX net income from continuing operations
was $293 million, or $1.38 per share, compared to $186 million, or
88 cents per share, for 2000. Excluding the litigation provision,
net income from continuing operations was $330 million or $1.55 per
share, an increase of 77 percent.
In November, CSX agreed to
settle a lawsuit in which 8,000-plus plaintiffs had been seeking
$850 million, alleging exposure to toxic chemicals because the
cancer-causing chemical butadiene leaked from a tank car at a CSXT
yard and exploded.
A Louisiana court had originally awarded
the plaintiffs $2.5 billion in punitive damages. Neither the company
nor its attorneys have revealed how much CSX's insurers have agreed
to pay the plaintiffs in addition to the railroad's $37
million.
CSXT operates in 23 states and has 35,000 employees.
CSX is based in Richmond, Va.