Investing.com -- Shares in CSX Corporation (O:CSX) fell slightly on Tuesday in after-hours trading after the major railroad company failed to meet analysts' expectations with its revenues over the fourth quarter of 2015.
During CSX's fourth quarter, the Jacksonville, Florida-based company reported sales of $2.78 billion, a decline of 13% on a year-over-year basis, as pricing gains were more than offset by the impact of lower fuel recovery. Revenues also slumped on the quarter amid a 6% decrease in volume and a continued transition in the company’s business mix. Analysts expected to see revenues of $2.82 billion for the three-month period.
CSX also reported earnings per share of 0.48, slightly above analysts' expectations of per share earnings of 0.46. The figure, however, was revised lowered after the company issued profit warnings in early-December, due in part to lower coal volumes. Last year, U.S. coal production slumped to 30-year lows, amid low natural gas prices and climate change policies that encouraged utility companies to switch to natural gas.
At the time, CSX expected to move around 30 million tons of coal exports in 2015, a significant decline from the previous year. In its 2014 annual report, CSX said its coal business shipped nearly 1.3 million carloads, representing a spike of 5% on an annual basis. In addition, CSX said utilities increased its coal shipments for the first time since 2006. Still, CSX warned that coal shipments were likely to decline in the near future, due to increased environmental regulatory pressures and competition from natural gas.
As a result, CSX generated $11.8 billion in revenue and delivered earnings per share of 2.00, up 4% from the previous year. When CSX revised its forward guidance in October, it said at the time that it expected annual EPS of 2.00 to 2.04 for the year.
“CSX delivered solid results in 2015 by balancing strong service with compelling cost control and efficiency gains despite a market challenged by low commodity prices and global impacts of the strong U.S. dollar.” said Michael J. Ward, chairman and chief executive officer.
"With negative global and industrial market trends projected for 2016, full-year earnings per share are expected to be down compared to 2015," Ward added. "CSX will continue to be rigorous about efficiency, resources and service quality in order to maximize shareholder value and achieve a mid-60s operating ratio longer term.”
Shares in CSX lost 0.51 or 2.15% to 23.19 in after-hours trading.