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CSX: ECONOMY IS WEAK, BUT CONTINUES TO TREND HIGHER

CSX reported better than expected earnings after the closing bell and the economically sensitive transport firm also detailed their current economic outlook.  Michael Ward, CEO of CSX said the economy continues to show signs of life:

“The economy continued to show modest, sequential improvement in the quarter.”

In the earnings press release they went into a bit more detail.  Although the economy is showing signs of life performance remains mixed across various sectors and the overall economy remains weak:

“CSX experienced another quarter of volume and revenue decline caused by the weak economy. The greatest volume declines occurred in coal, construction and consumer-related markets. However, the overall rate of year-over-year volume decline continued to moderate with the slight improvement in the economy.

Strength is beginning to show in international markets:

“International – Volume continues to be down due to both weak imports and exports, however weakness in global trade is beginning to ease.”

The weak recovery continues….

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