CSX Forecasts Revenue to Decline Up to 2% This Year -- Commodity Comment

By Micah Maidenberg

CSX Corp. released second-quarter results on Tuesday, reporting that revenue declined 1% compared with the year earlier to $3.06 billion, a figure that fell short of the $3.14 billion analysts polled by FactSet predicted.

For the year, the company said it expects revenue to fall 1% to 2%, saying the outlook reflects its "cautious forecasting approach given economic uncertainty."

Here are some of the commodities CSX said helped and hurt its performance in the latest quarter, according to an investor presentation:

On the chemicals market:

The company reported gains in this market "as stronger crude oil and waste shipments were partially offset by reduced fly ash, natural gas liquids and sand volumes." Revenue from chemicals rose 1% compared to last year.

On agriculture and food:

Agricultural and food products growth was "driven by strength in domestic grain and ethanol markets." Revenue jumped 9%.

On the lumber market:

Forest products were "led by high demand for wood pulp and stronger lumber shipments." Revenue gained 4%.

On minerals:

Strength in minerals was "driven by increased construction and paving project activity." Revenue increased 5%.

On fertilizers:

Fertilizers were "negatively impacted by wet weather conditions delaying fertilizer applications." Revenue was flat.

Coal:

"Coal revenue decreased, as growth in domestic industrial markets was more than offset by export and utility declines." Overall, revenue dropped 2%.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires