CSX’s second-quarter profits fell due to unfavorable changes in traffic mix, leading to a revenue decline and increased costs from congestion and detours. Despite this, operational recovery showed improvement in on-time performance. Operating income dropped 11% to $1.28 billion, with revenue down 3% to $3.57 billion and earnings per share decreasing 10% to 44 cents.

Quarterly volume remained flat, with intermodal up 2%, merchandise down 2%, and coal up 1%. International intermodal volume grew, but domestic volume stayed stable. While some merchandise segments saw growth, challenges remain in industrial markets due to economic uncertainty.

CSX expects overall volume growth this year, with multiple industrial projects coming online and a shift from highway to intermodal freight. Progress was seen in the new Southeast Mexico Express intermodal service and ongoing tunnel and bridge clearance projects to improve network capacity.

Despite service challenges, CSX received positive feedback from customers and regulators. The Howard Street Tunnel and Blue Ridge rebuild projects are progressing well, expected to be completed by the fourth quarter to enhance network capacity and end related detours.

Despite the challenges, CSX’s customers rated the railroad highly in a recent survey. The company is working on improving intermodal service, upgrading yards, and addressing congestion issues to enhance overall performance and customer satisfaction.

Read more at Yahoo Finance: CSX profits fall on lower revenue, higher costs