CSX has reported a 3% increase in shipments during the third quarter, contributing to an 8% rise in profits. However, the company anticipates only limited volume expansion for the remainder of the year as areas in the Southeast continue to recover from two significant hurricanes.

On Wednesday, CSX disclosed that it earned $894 million, translating to 46 cents per share, which marks an increase from the $828 million or 41 cents per share posted during the same period last year. This performance did fall short of analysts’ expectations, who had projected earnings of 48 cents per share, according to data from FactSet Research.

The Jacksonville, Florida-based railroad has been navigating the aftermath of Hurricanes Helene and Milton, which inflicted considerable damage across its network in the Southeast. As repairs and clearing of tracks progress, some train routes have had to adapt in response to these challenges.

CSX CEO Joe Hinrichs emphasized that the company has shown both flexibility and resilience in light of the storm-related havoc, stating, “We remain prepared to address our customers’ requirements.” In addition to the hurricane disruptions, CSX is also facing lower-than-anticipated demand for its metals and automotive freight.

For the quarter that concluded on September 30, CSX reported a revenue increase of 1%, reaching $3.62 billion. This result was slightly below analysts’ consensus which was $3.68 billion.

For several years, CSX has been focused on cost-cutting measures, such as operating longer trains less frequently to reduce the number of locomotives and crews needed. This quarter, those efforts paid off as expenses dropped by 2% to $2.27 billion.

As one of the largest railroads in the United States, CSX plays a crucial role in servicing the eastern parts of the country.