CSX Corp (CSX.O), one of the biggest U.S. railroad operators, reported a stronger-than-expected quarterly profit on Tuesday, driven by efforts to cut costs.
Shares of the Jacksonville, Florida-based company rose 3.7 percent to $58.65 in after-hours trading.
CSX said its operating ratio, which measures operating expenses as a percentage of revenue, fell to 63.7 percent in the first three months of 2018 from 73.2 percent a year earlier.
CSX has said it plans to reduce its operating ratio — a closely watched measure for railroads — to 60 percent by 2020 to boost profitability.
The company's profit rose to $695 million or 78 cents a share in the quarter ended March 31, from $362 million or 39 cents a share, a year earlier.
CSX's results in the year-earlier quarter included restructuring expenses of $110 million.
Excluding one-time items, CSX earned 78 cents per share, topping analysts' average expectation of 66 cents, according to Thomson Reuters I/B/E/S.
Revenue rose slightly to $2.88 billion.