CSX Corp. reported that phosphate and fertilizer volumes were up 8 percent for the year ending Dec. 31, 2010, to 313,000 units (units = railcars, containers, or trailers) versus the year-ago 289,000 units. Revenues, however, were up 25 percent, to $465 million from the prior year’s $373 million. Revenues per unit were up 15 percent, to $1,486 from $1,291. This was the highest percentage for all commodities except coal, which saw an 18 percent increase.
Phosphate and fertilizer volumes were down 3 percent in the fourth quarter, to 76,000 units from the year-ago 78,000. However, CSX said this was due in part to the temporary loss of some short-haul phosphate business in Florida. Specifically, CSX told analysts that this was due to The Mosaic Co. having to temporarily halt mining at South Fort Meade because of a lawsuit by the Sierra Club. Mining has since resumed on a temporary basis, and Mosaic’s appeal of the lawsuit is pending. Despite the volume dip, phosphate/fertilizer revenues were up 29 percent for the quarter, to $126 million from the year-ago $98 million. Revenues per unit were up 32 percent, to $1,658 from $1,256. This was a higher percentage increase than for any commodity carried.
Asked about higher phosphate prices and rates, Clarence Gooden, CSX executive vice president of sales and marketing and chief commercial officer, told analysts that CSX is going to price its phosphate business to the market and market demand. “So the better the demand, the better the price, and it will see rail inflation.” Asked if the phosphate increases are just seasonal, he said he thought they had reached a new base.
CSX-wide, fourth-quarter net income was up 42 percent, to $430 million ($1.14 per diluted share) on sales of $2.82 billion, up from the year-ago $303 million ($.77 per share) on sales of $2.32 billion. The EPS numbers were up 48 percent; CSX said this represented a record fourth quarter for the company.
CSX also said it delivered record results for the year, with net income up 37 percent to $1.56 billion ($4.06 per share) on sales of $10.64 billion, up from net income of $1.14 billion ($2.89 per share) on sales of $9.04 billion.