Investing.com -- Shares in CSX Corporation (NYSE:CSX), one of the largest Class I railroad companies in the U.S., gained more than 3% in after-hours trading, after it eclipsed the $1 billion mark in quarterly operating income for the first time in the corporation's 35-year history.
CSX Corporation, a Jacksonville-based company, posted earnings of $553 million or 0.56 per share during the quarter, up from $529 million or 0.53 per share during the same period last year. Additionally, the company said it maintained an all-time record operating ratio of 66.8% during the period, amid improving service measurements and quality safety results.
"While we saw challenges in a number of markets, CSX employees delivered an even safer, more reliable and more differentiated service product this quarter," CSX CEO Michael J. Ward said in a statement. "We expect the momentum in network performance we saw in the second quarter to accelerate, continuing to create value for our customers and shareholders."
Although CSX saw its revenue plummet by 6% in the quarter, the company said the losses were more than offset by the positive impacts of lower fuel recovery, reduced fuel prices and savings from efficiency initiatives. CSX also reported a 5% increase in intermodal traffic or freight transport involving multiple forms of transportation.
"What we have in the intermodal space is a long-term secular trend where we're able to convert that traffic that is currently moving on the highway system over to a railed-based system in partnership with the trucking companies," CSX chief financial officer Frederik Eliasson told CNBC. "We can do the long haul and they can do the pickup delivery."
CSX shares gained 1.11 or 3.46% to 33.17 in after-hours trading.