Railroad company CSX Corp (CSX.N) expects to follow up its better-than-expected second-quarter profit with good gains in the current quarter as the economic recovery gains momentum, company officials said on Tuesday.
"Each quarter we see a little more strength," said CSX Chairman Michael Ward. "As we look to the second half of the year, we think almost all our major markets are going to continue to see that gradual recovery. We expect to have a very good 2010."
Jacksonville, Florida-based CSX reported late Monday that net income for the railroad, one of the largest in the United States, rose 36 percent in the second quarter, beating analysts' expectations.
Volume improved across the varied markets the company serves, and its revenue grew 22 percent to nearly $2.7 billion.
Company officials said they were seeing evidence that the industrial economy was expanding as inventories remain low.
Strong growth is seen in the company's intermodal business, both internationally and domestically, and increased automotive production should spur higher shipping volumes related to that sector, Ward said. Automotive volume jumped 63 percent in the second quarter.
Being a fan of DOW theory, this is good news indeed.