CSX Corp. (CSX) said Tuesday its second-quarter profit chugged ahead 2 percent as the economy continued to improve, so the railroad is investing an additional $100 million in its network.
The Jacksonville, Florida-based company said its net income improved to $529 million, or 53 cents per share, from $521 million, or 51 cents per share, in the same period last year.
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The average estimate of analysts surveyed by Zacks Investment Research was for profit of 52 cents per share.
The freight railroad said revenue improved 7 percent to $3.24 billion from $3.05 billion last year as it hauled 8 percent more carloads of freight. Analysts expected $3.25 billion, according to Zacks.
CSX Chairman, President and CEO Michael Ward said the railroad is increasing its capital spending plan to $2.4 billion for the year because of the improving economy. CSX also plans to hire additional workers.
CSX affirmed its prediction for modest profit growth this year and double-digit profit growth in 2015 and beyond.