April 13, 2010 / 9:02 PM / 8 years ago

CORRECTED - UPDATE 2-CSX earnings rise 22 pct in 1st quarter

(Corrects revenue estimate in fifth paragraph to $2.38 billion from $3.48 billion)

* Revenue up 11 percent

* Earnings beat analysts’ estimates

* Shares rise in after market trade

KANSAS CITY, April 13 (Reuters) - U.S. railroad CSX Corp CSX.N reported a 22 percent jump in quarterly earnings on Tuesday, beating analysts’ estimates on an improving economy and efficiency gains in its transportation network.

Shares were up more than 1 percent at $53.91 in after-hours trade.

The Jacksonville, Fla.-based company said first quarter earnings from continuing operations and on a net basis totaled $306 million, or 78 cents per share, versus $254 million, or 64 cents per share on an ongoing basis last year.

Revenue rose 11 percent to nearly $2.5 billion, with gains across most of the company’s markets, the company said.

Analysts, on average, expected the company -- which operates in 23 states east of the Mississippi and in the Canadian provinces of Quebec and Ontario -- to earn 69 cents a share on revenue of $2.38 billion, according to Thomson Reuters I/B/E/S.

Dahlman Rose analyst Jason Seidl said the results bode well for CSX and the railroad industry overall.

“This is the first indication that the railroads are going to be able to bring increased traffic down to the bottom line,” Seidl said. “These are very strong quarterly results for them.”

Gains in productivity were key as the company’s operating ratio for the quarter was 74.5 percent, compared to 76.8 percent a year earlier.

U.S. rail traffic generally has been improving due largely to active movement of commodities and automotive volume gains. (Reporting by Carey Gillam; Editing by Bernard Orr)

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