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CSX and Knight-Swift post gains as fuel pressures split transport firms
CSX revenue rose 10% to $3.94 billion and fuel costs increased to $446 million, while Knight-Swift said tighter truck supply helped drive an 80% jump in adjusted profit.
Three transportation companies, CSX Corporation, Knight-Swift Transportation Holdings, and Southwest Airlines, reported earnings on the same day this week, with each facing fuel cost pressure that rose after the Iran war began, according to Yahoo Finance.
CSX beat expectations, with revenue up 10% to $3.94 billion versus $3.89 billion expected, and profit of $1 billion, or 54 cents per share, up from 44 cents a year earlier. The company said operating profit rose 17% despite fuel costs rising to $446 million from $269 million a year ago, supported by stronger intermodal shipments as consumer spending remained resilient, even as coal shipments and some heavy-industry parts stayed weak.
Knight-Swift reported adjusted earnings of 63 cents per share, up 80% from 35 cents a year earlier, on revenue of $2.1 billion, up nearly 13%. CEO Adam Miller attributed the improvement to fewer trucks available for freight that needs to move, which is pushing up prices and showing up in shippers being turned down more often, with Knight-Swift saying it is losing less business than other trucking companies and that its intermodal segment grew.
The article also notes that Southwest’s results were harder hit by fuel costs, but it did not include the full details in the provided excerpt. CSX raised its expected earnings for the rest of the year, and Knight-Swift said it expects a better third quarter.