Freight railroad operator CSX Corp said that its Q4 profit rose by 6% as higher rates offset a decline in the volume of goods it shipped.

CSX net income in the quarter ended December 30 rose to USD 457 million from USD 430 million a year earlier. The railroad shipped less coal, chemicals and agricultural products than it did a year ago. Overall volume was down 4%.

CSX said it shipped less coal because utilities needed less of it to generate electricity. Some utilities are using more natural gas to run generators, because its price is close to a 10 year low.

CSX carried more cars and automotive components in the quarter, as North American production picked up from a year ago. Volume of some construction materials such as crushed stone and sand was also higher, helped by mild winter weather that extended the building season in many parts of the country.

Revenue per shipping unit jumped 9% led by double digit increases for hauling coal and autos. That helped the company boost revenue to USD 2.95 billion, compared with USD 2.82 billion a year earlier. Analysts expected USD 2.99 billion.

Economists follow the performance of railroads as one indicator of the strength of the broader economy. That’s because railroads haul a wide range of things, from consumer goods to cars and commodities like coal and grain.

(Sourced from Associated Press)