CSX second-quarter profit slipped 1%, falling short of what Wall Street expected as the railroad hauled 4% less freight.
The Jacksonville, Florida-based company said it earned $870 million, or $1.08 per share, in the quarter. That's down from $877 million, or $1.01 per share, a year ago.
The analysts surveyed by Zacks Investment Research expected earnings of $1.11 per share in the latest quarter.
The freight railroad posted revenue of $3.06 billion in the period, which also missed Street forecasts. Five analysts surveyed by Zacks expected $3.14 billion.
CSX reduced its outlook for the year. The railroad now predicts revenue will be down 1% to 2% this year. Previously, CSX said it expected revenue low-single digit revenue growth on the year.
The biggest drop in CSX's freight came in the intermodal category where shipments of containers taken off ships fell 10%. Shipments of metals and equipment fell 9%, and fertilizer shipments declined 5%.
CSX Corp. is more than two years into an operational overhaul designed to enable the railroad to handle more volume with fewer locomotives and employees by operating on a tighter schedule. During the second quarter, expenses declined another 3% to $1.76 billion.
The railroad's stock was down about 5% to $75.44 in after-hours trading following the release of the earnings report.
The stock has risen 28% since the beginning of the year, while the Standard & Poor's 500 index has risen 20%.
CSX operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CSX at https://www.zacks.com/ap/CSX
WASHINGTON (AP) — The Biden administration paused a shipment of bombs to Israel last week over concerns that the country was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the United States, Defense Secretary Lloyd Austin said Wednesday.
The shipment was supposed to consist of 1,800 2,000-pound (900-kilogram) bombs and 1,700 500-pound (225-kilogram) bombs, according to the official who spoke on the condition of anonymity to discuss the sensitive matter. The focus of U.S. concern was the larger explosives and how they could be used in a dense urban setting like Rafah where more than 1 million civilians are sheltering after evacuating other parts of Gaza amid Israel’s war on Hamas, which came after the militant group’s deadly attack on Israel on Oct. 7.
Austin confirmed the weapons delay, telling the Senate Appropriations subcommittee on defense that the U.S. paused “one shipment of high payload munitions.”
“We’re going to continue to do what’s necessary to ensure that Israel has the means to defend itself,” Austin said. “But that said, we are currently reviewing some near-term security assistance shipments in the context of unfolding events in Rafah.”
The U.S. has historically provided enormous amounts of military aid to Israel. That has only accelerated in the aftermath of Hamas’ Oct. 7 attack that killed some 1,200 in Israel and led to about 250 being taken captive by militants. The pausing of the aid shipment is the most striking manifestation of the growing daylight between Israel Prime Minister Benjamin Netanyahu’s government and the administration of Democratic President Joe Biden, which has called on Israel to do far more to protect the lives of innocent civilians in Gaza.
It also comes as the Biden administration is due to deliver a first-of-its-kind formal verdict this week on whether the airstrikes on Gaza and restrictions on delivery of aid have violated international and U.S. laws designed to spare civilians from the worst horrors of war. A decision against Israel would further add to pressure on Biden to curb the flow of weapons and money to Israel’s military.
Biden signed off on the pause in an order conveyed last week to the Pentagon, according to U.S. officials who were not authorized to comment on the matter. The White House National Security Council sought to keep the decision out of the public eye for several days until it had a better understanding of the scope of Israel’s intensified military operations in Rafah and until Biden could deliver a long-planned speech on Tuesday to mark Holocaust Remembrance Day.
Biden’s administration in April began reviewing future transfers of military assistance as Netanyahu’s government appeared to move closer toward an invasion of Rafah, despite months of opposition from the White House. The official said the decision to pause the shipment was made last week and no final decision had been made yet on whether to proceed with the shipment at a later date.
U.S. officials had declined for days to comment on the halted transfer, word of which came as Biden on Tuesday described U.S. support for Israel as “ironclad, even when we disagree.”
Press secretary Karine Jean-Pierre declined to square the arms holdup with Biden’s rhetoric in support of Israel, saying only, “Two things could be true.”
Israel’s ambassador to the United Nations, Gilad Erdan, in an interview with Israeli Channel 12 TV news, said the decision to pause the shipment was “a very disappointing decision, even frustrating." He suggested the move stemmed from political pressure on Biden from Congress, the U.S. campus protests and the upcoming election.
Biden has faced pressure from some on the left — and condemnation from the critics on the right who say Biden has moderated his support for an essential Mideast ally.
“If we stop weapons necessary to destroy the enemies of the state of Israel at a time of great peril, we will pay a price,” said Sen. Lindsey Graham, R-S.C., his voice rising in anger during an exchange with Austin. “This is obscene. It is absurd. Give Israel what they need to fight the war they can’t afford to lose.”
Independent Sen. Bernie Sanders of Vermont, a Biden ally, said in a statement the pause on big bombs must be a “first step.”
“Our leverage is clear,” Sanders said. “Over the years, the United States has provided tens of billions of dollars in military aid to Israel. We can no longer be complicit in Netanyahu’s horrific war against the Palestinian people.”
Austin, meanwhile, told lawmakers that "it’s about having the right kinds of weapons for the task at hand.”
"A small diameter bomb, which is a precision weapon, that’s very useful in a dense, built-up environment,” he said, “but maybe not so much a 2,000-pound bomb that could create a lot of collateral damage.” He said the U.S. wants to see Israel do “more precise” operations.
Israeli troops on Tuesday seized control of Gaza’s vital Rafah border crossing in what the White House described as a limited operation that stopped short of the full-on Israeli invasion of the city that Biden has repeatedly warned against on humanitarian grounds, most recently in a Monday call with Netanyahu.
Israel has ordered the evacuation of 100,000 Palestinians from the city. Israeli forces have also carried out what it describes as “targeted strikes” on the eastern part of Rafah and captured the Rafah crossing, a critical conduit for the flow of humanitarian aid along the Gaza-Egypt border.
Privately, concern has mounted inside the White House about what’s unfolding in Rafah, but publicly administration officials have stressed that they did not think the operations had defied Biden’s warnings against a widescale operation in the city.
The State Department is separately considering whether to approve the continued transfer of Joint Direct Attack Munition kits, which place precision guidance systems onto bombs, to Israel, but the review didn’t pertain to imminent shipments.
The U.S. dropped the 2,000-pound bomb sparingly in its long war against the Islamic State militant group. Israel, by contrast, has used the bomb frequently in the seven-month Gaza war. Experts say the use of the weapon, in part, has helped drive the enormous Palestinian casualty count that the Hamas-run health ministry puts at more than 34,000 dead, though it doesn’t distinguish between militants and civilians.
The U.S.-Israel relationship has been close through both Democratic and Republican administrations. But there have been other moments of deep tension since Israel's founding in which U.S. leaders have threatened to hold up aid in attempt to sway Israeli leadership.
President Dwight Eisenhower pressured Israel with the threat of sanctions into withdrawing from the Sinai in 1957 in the midst of the Suez Crisis. Ronald Reagan delayed the delivery of F16 fighter jets to Israel at a time of escalating violence in the Middle East. President George H.W. Bush held up $10 billion in loan guarantees to force the cessation of Israeli settlement activity in the occupied territories.
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Associated Press writers Josef Federman in Jerusalem and Lolita C. Baldor and Matthew Lee contributed to this report.
Chairman of the Joint Chiefs of Staff Air Force Gen. CQ Brown, right, listens as Secretary of Defense Lloyd Austin, left, speaks during a hearing of the Senate Appropriations Committee Subcommittee on Defense on Capitol Hill, Wednesday, May 8, 2024, in Washington. (AP Photo/Mark Schiefelbein)
Protestors opposed to the war between Israel and Hamas stand before a hearing of the Senate Appropriations Committee Subcommittee on Defense with Secretary of Defense Lloyd Austin and Chairman of the Joint Chiefs of Staff Air Force Gen. CQ Brown on Capitol Hill, Wednesday, May 8, 2024, in Washington. (AP Photo/Mark Schiefelbein)
Sen. Lindsey Graham, R-S.C., speaks during a hearing of the Senate Appropriations Committee Subcommittee on Defense with Secretary of Defense Lloyd Austin and Chairman of the Joint Chiefs of Staff Air Force Gen. CQ Brown on Capitol Hill, Wednesday, May 8, 2024, in Washington. (AP Photo/Mark Schiefelbein)
Protestors opposed to the Israel-Hamas war are escorted out as Secretary of Defense Lloyd Austin, left, speaks during a hearing of the Senate Appropriations Committee Subcommittee on Defense on Capitol Hill, Wednesday, May 8, 2024, in Washington. (AP Photo/Mark Schiefelbein)
Secretary of Defense Lloyd Austin attends a hearing of the Senate Appropriations Committee Subcommittee on Defense on Capitol Hill, Wednesday, May 8, 2024, in Washington. (AP Photo/Mark Schiefelbein)
White House press secretary Karine Jean-Pierre speaks during a briefing at the White House, Tuesday, May 7, 2024, in Washington. (AP Photo/Evan Vucci)
President Joe Biden speaks at the U.S. Holocaust Memorial Museum's Annual Days of Remembrance ceremony at the U.S. Capitol, Tuesday, May 7, 2024 in Washington. (AP Photo/Evan Vucci)
Pentagon chief confirms US has paused bomb shipment to Israel to signal concerns over Rafah invasion
Pentagon chief confirms US has paused bomb shipment to Israel to signal concerns over Rafah invasion
Smoke rises following an Israeli airstrike east of Rafah, Gaza Strip, Monday, May 6, 2024. (AP Photo/Ismael Abu Dayyah)
