Tags: autos | lead | gradual | recovery

CSX’s Ward Says Autos Leading ‘Gradual’ US Recovery

Wednesday, 13 Oct 2010 07:52 PM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

SX Corp. Chief Executive Officer Michael Ward said increased U.S. automobile production is helping drive a gradual economic recovery.

The second-largest publicly traded U.S. railroad yesterday reported third-quarter profit that topped analysts’ estimates as a 44 percent increase in automotive shipments boosted rail volumes. North American car and light-truck production rose 62 percent through August this year to 7.86 million vehicles, according to Ward’s AutoInfoBank.

“Except for housing-related, we’re seeing things continue their gradual recovery,” Ward, 60, said today in a telephone interview. “You are getting the drag effect you would expect as automotive continues to rebound.”

Profit from continuing operations climbed to $414 million, or $1.08, from $290 million, or 73 cents, a year earlier, Jacksonville, Florida-based CSX said yesterday in a statement. The average estimate of 24 analysts surveyed by Bloomberg was profit of $1.04 a share.

Total shipping volumes rose 10 percent, CSX said. Sales climbed 16 percent to $2.67 billion, helped by higher prices and revenue gains in autos, chemicals and fertilizers.

“There is some pricing ability because we are an attractive option for people,” Ward said. “If they look at their options of moving stuff by truck or other modes, rail is the most attractive to them. So even with the slightly higher prices, we still are a good value.”

CSX rose $2.40, or 4.2 percent, to $59.66 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 23 percent this year.

Union Pacific Corp. is the largest publicly traded U.S. railroad. CSX trails both Union Pacific and Warren Buffett’s Burlington Northern Santa Fe Corp. by 2009 revenue.


© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Full Holiday Menu for Obamas, Plus 6 Pies

Thursday, 27 Nov 2014 20:59 PM

President Barack Obama spent a quiet Thanksgiving at the White House where the belly-stuffing menu featured all the holi . . .

NFL Urges Lame-Duck Congress to Renew Terrorism Risk Insurance

Thursday, 27 Nov 2014 20:21 PM

The National Football League has joined a growing coalition of business groups across the country to urge Congress to pa . . .

Alaska Pot Backer Ordered to Comply With Subpoena

Thursday, 27 Nov 2014 19:11 PM

A campaign-finance investigation is moving forward against an Alaska television reporter who quit her job on-air and vow . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved