OMAHA, Neb. (AP) CSXs new chief executive is defending the restructuring progress made in the first four months since he was hired to lead a turnaround of the railroad.
CEO Hunter Harrison, whos previously led turnarounds at three other railroads, says hes pleased with the improvement so far.
I thought we had a hell of a quarter, Harrison said Wednesday.
The Jacksonville, Florida-based railroad has taken nearly 900 locomotives and 60,000 freight cars out of service and laid off 2,300 people this year. Harrison said those changes havent all paid off yet.
Changing the operating the model a railroad uses is difficult because everyone who works there is used to operating a certain way. Harrison said the level of resistance is about what he expected.
CSX is working to eliminate infrastructure it doesnt need and consolidate operations. That includes shutting down most of the railroads 12 railyards to eliminate redundancy.
The railroad will also consolidate all of its dispatching into one central location instead of the current nine early next year.
But Wall Street appeared disappointed with CSXs guidance for the rest of the year, and the railroads shares fell 5.1 percent, or $2.77, to close at $51.87 Wednesday.
CSX reiterated that its on track to achieve a forecast 25 percent improvement in earnings per share this year. Analysts surveyed by FactSet had been predicting adjusted annual earnings per share this year of $2.29.
The 72-year-old Harrison was hired by CSX in March after pressure from the Mantle Ridge hedge fund that owns 5 percent of the railroad. Harrison previously led turnarounds of Canadian Pacific, Canadian National and the Illinois Central railroads.
CSX Corp. said Tuesday that its second-quarter net income improved 15 percent to $510 million, or 55 cents per share, as it hauled 2 percent more freight. Thats up from $445 million, or 47 cents per, share a year ago.
Coal was somewhat of a bright spot in the quarter with a 7 percent increase the volume CSX hauled. But demand for coal has crumbled over the past several years because natural gas has been so cheap and environmental concerns have been growing
Harrison offered a bleak long-term outlook for the fuel Wednesday and said he wouldnt make any major investments to haul coal.
Fossil fuels are dead. Thats a long-term view, Harrison said. Its not going to happen overnight. Its not going to be two or three years, but its going away in my view.
The railroads quarterly results were weighed down by $122 million in restructuring charges. Without those charges, the railroad said it would have reported earnings per share of 64 cents.
Most of the $122 million restructuring charge in the second quarter was related to Harrisons hiring. CSX agreed to cover $84 million in compensation that Harrison forfeited at Canadian Pacific when he retired early. Shareholders approved those payments last month.
CSX operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces.
Read more:
CSX execs defend early progress in restructuring railroad - Seattle Times
- Progress Lighting - Home [Last Updated On: December 22nd, 2016] [Originally Added On: December 22nd, 2016]
- Home - Progress Lighting Outlet - Authorized Progress Dealer [Last Updated On: January 13th, 2017] [Originally Added On: January 13th, 2017]
- What does progress mean? - Definitions.net [Last Updated On: January 13th, 2017] [Originally Added On: January 13th, 2017]
- Progress Fire Company Harrisburg, PA [Last Updated On: January 13th, 2017] [Originally Added On: January 13th, 2017]
- Homepage Center for American Progress [Last Updated On: January 13th, 2017] [Originally Added On: January 13th, 2017]
- Progress being made on possible grocery store co-op in Winston-Salem - myfox8.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Nioh Review-in-Progress: FromSoftware's Formula Evolved - Shacknews [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Deutsche Bundesbank Cites Progress With Blockchain-Based Settlement - CryptoCoinsNews [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- IMF: Greece's debts are still unsustainable despite progress - The Seattle Times [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Think Progress Editor Mocks Audi for Equal Pay Super Bowl Ad - Breitbart News [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Progress apparent on defense - Pittsburgh Steelers - Steelers.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- IMF: Greece's Debts are Still Unsustainable, Despite Progress - Voice of America [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Can US disrupter-in-chief trigger some progress? - Jerusalem Post Israel News [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- The Cost of Progress - Slate Magazine [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Cavaliers' pitching rotation a work in progress | Cavalier Insider ... - The Daily Progress [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- High schoolers create 'zines for progress' with WolfsonianFIU - FIU News [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Cries of 'dictator' show Pope Francis is making progress - Crux: Covering all things Catholic [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Officials: City is making progress in effort to address opioid crisis - The Union Leader [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- IN OUR VIEW: Work Ready in Progress for Carter - The Independent [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- BP's Earnings Keep Showing Progress, Even if the Headline Results Don't Say So - Motley Fool [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Women's Progress in the Boardroom Took a Hit in 2016 - Inc.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Blight Elimination Progress, Uplifting - MyWabashValley [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Rauner 'heartened' by progress in Springfield - Bloomington Pantagraph [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- David Johnson showed off the insane progress he's making in rehab from his knee injury - USA TODAY [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Through the looking glass: Tower view showcases progress on Amazon's unique biospheres - GeekWire [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Britney Spears Says Niece Maddie Is 'Making Progress' After ATV Accident: 'Let's All Keep Praying' - PEOPLE.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Progress on vet's Mustang to be unveiled - Indianapolis Star [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Evgeni Malkin making 'progress,' could return Saturday in Arizona - Pittsburgh Post-Gazette [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Forecasters See Slow Progress in Labor-Market Measures Favored by Trump Administration - Wall Street Journal [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- 'Paper boys' were the lifeblood of The Daily Progress - The Daily Progress [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Cliffs Natural Resources Is Showing a Lot of Progress on Its Return to Profitability - Motley Fool [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- ATA says states' telemedicine progress a mixed bag ... - FierceHealthcare [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Seltzer's Notebook | Colangelo Encouraged by Sixers' Progress - Sixers.com [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- The Trump administration can't entirely roll back progress on climate change here's why - Washington Post [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Colts position review: OL showed legit progress, but work remains - Indianapolis Star [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Egyptian Economy Making Slow, Tentative Progress - Voice of America [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- ATA: States show mixed progress with telemedicine | Healthcare Dive - Healthcare Dive [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Louisville City notes: McCabe making progress - The Courier-Journal [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Jeremy Lin: Progress but no timetable - NetsDaily [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Marginal progress for Turkish-backed forces in north Syria - LA Daily News [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Jimmy Cheek: UT chancellor appreciative of hard work, progress on journey - Knoxville News Sentinel [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Syria Regional Crisis 2016 Emergency Appeal - Progress Report - Reliefweb [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- CWLP officials: Bailout repayment would set back progress - The State Journal-Register [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Pistons' Johnson making halting but definite progress - The Detroit News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Clairton works: Real progress is coming to the former steel town - Pittsburgh Post-Gazette [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- The Democrats' Strategy: Hindering Progress For Partisan Politics - Daily Caller [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- The surprising progress stoppers on the Dallas Cowboys defensive line - Cowboys Wire [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Gender Progress in Ballet - Huffington Post [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Foyt pleased with progress, regrets lack of time - Motorsport.com, Edition: Global [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Progress Made, but Threat Lingers at California's Oroville Dam - Wall Street Journal [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Adele, Beyonc, and the Grammys' Fear of Progress - The Atlantic [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- North Korea Claims Progress on Long-Range Goal With Missile Test - New York Times [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- How Travel Bans Can Impede America's Progress - Forbes - Forbes [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Jeff Sessions' appointment threatens decades of civil rights progress - The Hill (blog) [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Ionis Earns $75M Milestone from Bayer for Progress of Antisense Drug Program - Genetic Engineering & Biotechnology News (press release) [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Guilford Schools annual report shows mixed results on progress - Greensboro News & Record (blog) [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Sniper Elite 4 review in progress - PC Gamer [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- For Honor Review In Progress - GameSpot [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- China's military progress challenges Western dominance, says IISS - Deutsche Welle [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- PFW in Progress Recap 2/14: Patriots Offseason Outlook | New ... - Patriots.com [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Daily Progress, chamber establish regional business Hall of Fame - The Daily Progress [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Huntsville-based Progress Bank to acquire Birmingham's First Partners Bank - Birmingham Business Journal [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- City, UF sign partnership for progress - Gainesville Sun [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- California officials lift evacuation order for 200000 threatened by damaged dam - CBS News [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- 5G progress at Ericsson could help enterprises work worldwide - Computerworld [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Officials making 'great progress' on California dam repairs, remind residents to stay vigilant - Fox News [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Halo Wars 2 Review in Progress - IGN [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- CUGNON: Forward progress - Yale Daily News (blog) [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- F-35 Program Makes Significant, Solid Progress, Official Says - Department of Defense [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Lenovo's data center ambitions remain work in progress following Q3 results - ZDNet [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- PFW in Progress Recap 2/16: Free Agency and Potential Patriots - Patriots.com [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- S&P 500: 'Blow-off' Phase in Progress - DailyFX [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Combine invites are another sign of progress at Michigan - Big Ten ... - ESPN (blog) [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Halo Wars 2 review in progress - PC Gamer [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- 'Hero' film produced just for Charlottesville featured the mayor, The Daily Progress - The Daily Progress [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Republicans' health care overhaul still a work in progress - Press Herald [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Trump Boasts Of 'Incredible Progress' In 4 Weeks Of Presidency - NPR [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Donald Trump touts promise progress at press conference - PolitiFact [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Mild winter helping crews make significant progress on East End Connector - WRAL.com [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Committee updates Legislature on precinct consolidation progress - Chicago Tribune [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]