CSX 1Q profit jumps 22% on higher rates despite service woes

By JOSH FUNK
AP Business Writer

OMAHA, Neb. (AP) — CSX railroad struggled to keep up with demand in the first three months of the year. But it still managed to deliver 22% more profit thanks to higher shipping rates offsetting a slight decline in the number of shipments it handled. The Jacksonville, Florida-based railroad said Wednesday it earned $859 million, or 39 cents per share, in the first quarter. That’s up from $706 million, or 31 cents per share, a year ago. The results beat Wall Street expectations. CSX CEO Jim Foote said demand remains strong but the railroad has struggled to handle all those shipments because of crew shortages. Hiring is the key to improving service, and CSX is making progress on adding workers.