April 22 (Reuters) - U.S. railroad operator CSX on Wednesday reported higher first-quarter profit and revenue, helped by strong intermodal volumes and firm pricing, sending shares up more than 6% after
the bell.
The results underscore improving momentum in the U.S. freight rail sector as operators lean on pricing discipline and operating efficiencies to navigate uneven demand trends.
Strong intermodal demand, supported by steady consumer spending, is helping U.S. rail operators such as CSX counter softness in coal and some industrial freight.
Intermodal volumes are the amount of freight moved using multiple modes of transportation, such as rail, truck and ship, without the cargo being handled when switching modes.
CSX reported higher fuel expenses during the quarter as fuel prices climbed amid heightened geopolitical tensions in the Middle East, raising concerns over potential crude supply disruptions and shipping routes.
Total fuel expenses were up 9.8% to $302 million during the quarter from a year ago.
The resulting increase in diesel costs weighs on CSX's expenses in the near term, though most of the impact is passed on to customers via fuel surcharges, making the effect on earnings largely neutral over time.
The Jacksonville, Florida-based company's first-quarter revenue rose 2% to $3.48 billion.
It posted a profit of 43 cents per share, compared with 34 cents per share a year earlier
The company's operating margin was 36% for the quarter, up 560 basis points from the year-ago period.
(Reporting by Apratim Sarkar; Editing by Pooja Desai)
