Csx Corporation (CSX) has reported 1.72 percent fall in profit for the quarter ended Dec. 30, 2016. The company has earned $458 million, or $0.49 a share in the quarter, compared with $466 million, or $0.48 a share for the same period last year.
Revenue during the quarter grew 9.21 percent to $3,037 million from $2,781 million in the previous year period. Gross margin for the quarter expanded 8 basis points over the previous year period to 92.85 percent. Total expenses were 66.94 percent of quarterly revenues, down from 71.56 percent for the same period last year. This has led to an improvement of 462 basis points in operating margin to 33.06 percent.
Operating income for the quarter was $1,004 million, compared with $791 million in the previous year period.
"In an environment where the company lost almost $470 million of coal revenue and experienced weakness across most of its markets, CSX delivered nearly $430 million of productivity savings in 2016, while improving customer service," said Michael J. Ward, chairman and chief executive officer. "With business conditions gradually improving and the ongoing transformation into the CSX of Tomorrow, we will continue to deliver sustainable shareholder value."
Operating cash flow declinesCsx Corporation has generated cash of $3,041 million from operating activities during the year, down 9.76 percent or $329 million, when compared with the last year. The company has spent $1,798 million cash to meet investing activities during the year as against cash outgo of $2,892 million in the last year. It has incurred net capital expenditure of $2,203 million on net basis during the year, down 8.78 percent or $212 million from year ago.
The company has spent $1,268 million cash to carry out financing activities during the year as against cash outgo of $519 million in the last year period.
Cash and cash equivalents stood at $603 million as on Dec. 30, 2016, down 3.98 percent or $25 million from $628 million on Dec. 25, 2015.
Working capital drops significantly
Csx Corporation has witnessed a decline in the working capital over the last year. It stood at $447 million as at Dec. 30, 2016, down 55.92 percent or $567 million from $1,014 million on Dec. 25, 2015. Current ratio was at 1.22 as on Dec. 30, 2016, down from 1.52 on Dec. 25, 2015.
Debt moves up Csx Corporation has witnessed an increase in total debt over the last one year. It stood at $11,293 million as on Dec. 30, 2016, up 7.20 percent or $758 million from $10,535 million on Dec. 25, 2015. Total debt was 31.89 percent of total assets as on Dec. 30, 2016, compared with 30.07 percent on Dec. 25, 2015. Debt to equity ratio was at 0.97 as on Dec. 30, 2016, up from 0.90 as on Dec. 25, 2015. Interest coverage ratio improved to 6.44 for the quarter from 5.65 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
