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CSX CEO Calls 2nd Quarter 'Most Disruptive' He's Ever Experienced

CSX's Jacksonville headquarters
BILL BORTZFIELD / WJCT NEWS
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CSX's Jacksonville headquarters

Freight traffic at CSX Corp. is picking up after COVID-19-related business shutdowns in the spring.

However, as it reported sharply lower second-quarter earnings, CEO Jim Foote said July 22 it is difficult to predict when business will fully recover, according to WJCT News partner the Jacksonville Daily Record.

Jacksonville’s other Fortune 1000 transportation company, Landstar System Inc., also reported a drop in earnings and revenue for the quarter on July 22.

CSX reported second-quarter revenue fell 26% to $2.26 billion with earnings of 65 cents a share, down from $1.08 in the second quarter of 2019.

“This was the most disruptive quarter I have experienced in my career with both the fastest decline in volumes followed by one of the most rapid increases in volumes in the company's history,” Foote said in the railroad company’s conference call with analysts.

He said freight volume dropped more than 25% early in the quarter but has bounced back by 20% since Memorial Day.

“We are happy to see the volumes recover from the May trough as the economy strengthens. However, while these trends are encouraging, the ultimate path of the recovery remains too wide to accurately predict at this point,” Foote said.

Read the rest of this story at JaxDailyRecord.com.