CSX Corporation (NASDAQ:CSX) stock rose 0.68% (As on October 21, 11:54:03 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 22 has reported net income of $1.11 billion, compared with $968 million in the third quarter of 2021, while the consensus, as compiled by FactSet, was for net income of $1.06 billion. Earnings per share reached 52 cents from 43 cents a year earlier, beats Wall Street expectations for earnings of 49 cents per share, according to FactSet. The numbers include a $42 million charge because the contracts railroads negotiated with their unions that include 24% raises and $5,000 in bonuses cost more than CSX expected. Operating income rose to $1.58 billion from $1.44 billion. The company had reported the adjusted revenue growth of 18 percent to $3.90 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $3.74 billion. This is helped by a higher fuel surcharge, pricing gains, a 2% increase in volumes and higher storage and other revenues.

Meanwhile, CSX has been hiring more workers throughout the year to help it better handle the freight its customers want to ship without significant delays. The railroad said its headcount is now up to 6,819 from about 6,400 at the start of the year. Its goal is to have roughly 7,000 employees by the end of the year. Those additional workers are helping. Throughout the year, the average speed of CSX’s trains has been increasing and hit 15.8 mph in the third quarter. That’s down from last year’s 17.7 mph but significantly better than the 14.9 mph CSX reported at the start of this year. Operating ratio increased to 59.5% in the third quarter, including the effect of the tentative union agreements. CSX is one of the nation’s largest railroads, and it operates more than 20,000 miles (32,000 kilometers) of track in 26 Eastern states and two Canadian provinces after acquiring Pam-Am Railways in the northeastern United States earlier this year.

The company expects to generate double-digit improvement in its full-year revenue and operating income this year. CSX says it’s focused on improving its service so it can handle more freight, and that it still sees pent-up demand for auto and coal shipments it hasn’t been able to deliver this year.