Washington Mutual swings to Q1 loss; CSX profit soars

Washington Mutual Inc. (NYSE: WM) reported Tuesday that it lost more than $1 billion in the first quarter, dragged down by the struggling economy and flagging real estate values.

The Seattle-based bank lost more than $1.1 billion, or $1.40 per share, compared with a profit of $784 million, or 86 cents per share, in the first quarter of the previous year. Analysts polled by Thomson Financial had forecast a loss of $1.05 per share.

Washington Mutual said it needed to set aside $3.5 billion to cover bad loans in its $250 billion portfolio during the period. The bank set aside less than half as much to cover bad loans in the year-ago period.

While shares closed up 3% to $10.66 in regular trading Tuesday, they fell in after-hours trading.

Railroad operator CSX Corp. (NYSE: CSX) reported that its first-quarter profit soared 46%, lifted by fuel surcharge recovery and with rising ethanol and grain volumes.

CSX said it earned $351 million, or 85 cents per share, compared with $240 million, or 52 cents per share, in the previous year. Revenue rose 12% to $2.7 billion. Analysts surveyed by Thomson Financial had forecast 74 cents per share on revenue of $2.63 billion.

The company also said it expects to reach the "upper end" of its previous full-year guidance of at $3.40 to $3.60 per share.

Shares closed up 66 cents to $57.77 on Tuesday, then surged an additional $1.35 in after-hour trading.