CSX Corporation (CSX) has reported an 1.69 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $362 million, or $0.39 a share in the quarter, compared with $356 million, or $0.37 a share for the same period last year.
Revenue during the quarter grew 9.59 percent to $2,869 million from $2,618 million in the previous year period. Gross margin for the quarter contracted 187 basis points over the previous year period to 92.40 percent. Total expenses were 75.18 percent of quarterly revenues, up from 73.11 percent for the same period last year. That has resulted in a contraction of 207 basis points in operating margin to 24.82 percent.
Operating income for the quarter was $712 million, compared with $704 million in the previous year period.
"I am pleased to join the CSX team and working together we are going to make this company the best North American railroad, capable of consistently meeting and exceeding the expectations of our customers and our shareholders," said E. Hunter Harrison, president and chief executive officer. "As the business environment continues to improve and we implement Precision Scheduled Railroading, CSX will realize these objectives while driving volume growth and achieving a new level of financial performance."
Operating cash flow improves significantly
CSX Corporation has generated cash of $1,043 million from operating activities during the quarter, up 38.33 percent or $289 million, when compared with the last year period.
The company has spent $286 million cash to meet investing activities during the quarter as against cash inflow of $41 million in the last year period.
The company has spent $430 million cash to carry out financing activities during the quarter as against cash outgo of $692 million in the last year period.
Cash and cash equivalents stood at $930 million as on Mar. 31, 2017, up 27.22 percent or $199 million from $731 million on Mar. 25, 2016.
Working capital drops significantly
CSX Corporation has witnessed a decline in the working capital over the last year. It stood at $383 million as at Mar. 31, 2017, down 58.19 percent or $533 million from $916 million on Mar. 25, 2016. Current ratio was at 1.17 as on Mar. 31, 2017, down from 1.54 on Mar. 25, 2016.
Days sales outstanding went down to 16 days for the quarter compared with 33 days for the same period last year.
Debt moves up
CSX Corporation has witnessed an increase in total debt over the last one year. It stood at $11,294 million as on Mar. 31, 2017, up 7.19 percent or $758 million from $10,536 million on Mar. 25, 2016. Total debt was 31.63 percent of total assets as on Mar. 31, 2017, compared with 30.44 percent on Mar. 25, 2016. Debt to equity ratio was at 0.97 as on Mar. 31, 2017, up from 0.91 as on Mar. 25, 2016. Interest coverage ratio improved to 5.20 for the quarter from 4.92 for the same period last year.
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