|
CSX earned $407 million, or 91 cents per share, compared with $328 million, or 71 cents per share, for the same quarter in 2006. Excluding 24 cents per share in the latest period from discontinued operations, and year-ago gains of 17 cents per share related to insurance and tax matters, the company posted adjusted profit of 67 cents per share, up from 54 cents in the 2006 quarter.
Revenue climbed 3 percent to $2.5 billion, as an 8 percent increase in revenue per unit offset a 4 percent drop in freight volume.
Analysts polled by Thomson Financial expected adjusted profit of 62 cents per share on revenue of $2.49 billion.
"The CSX team delivered exceptional levels of safety and service for our customers and excellent third-quarter results that build on the superior value we have delivered to our shareholders over the last three years," said Michael Ward, chairman, president and CEO.
The Children's Investment Master Fund sent a letter to the CSX board Tuesday asking for several changes, including separating the roles of chairman and chief executive officer, adding new directors with railroad experience, presenting a plan to improve operations, and improving labor relations.
The fund also wants company to allow shareholders to call special meetings and align management compensation with shareholder interests.
"It is our view that CSX management does not fully understand the economics of the business, is cavalier about potential risks, is undisciplined about spending, is unrealistic about future prospects, is complacent about operational under-performance and unnecessarily adversarial towards labor, shippers and shareholders. We hold the Board accountable for these failings," the letter said.
[to top of second column] |
 The fund known as TCI is a London-based asset manager that owns 17.8 million shares, or 4.1 percent, of CSX stock. A portion of TCI's profits goes to The Children's Investment Fund Foundation, a nonprofit organization focusing on improving the lives of children living in poverty in developing countries.
CSX said it had received the letter, but was still reviewing it.
CSX released its financial results after markets closed Tuesday. The shares rose 41 cents to $42.83 before climbing another 97 cents in after-hours trading.
CSX owns companies providing rail, intermodal and rail-to-truck loading services, connecting more than 70 river, ocean and lake ports, as well as more than 200 short line railroads. Its principal operating company, CSX Transportation Inc., operates the largest railroad in the eastern United States with a 21,000-mile rail network linking commercial markets in 23 states, the District of Columbia, and two Canadian provinces.
[Associated Press; by Ron Word]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
 |
