UPDATE 1-CSX posts lower quarterly profit

* Q2 EPS 72 cents vs 62 cents Wall St view

* Says freight volumes down 21 percent

* CSX shrs rise 3 pct after-hours

CHICAGO, July 13 (Reuters) - No. 3 U.S. railroad CSX Corp (CSX.N) on Monday reported a better-than-expected quarterly profit, sending shares more than 3 percent higher, but the company said the recession was continuing to hurt freight volumes.

The Jacksonville, Florida-based company reported second-quarter net income of $308 million, or 78 cents a share, compared with $385 million, or 93 cents a share, a year earlier.

Including the impact of discontinued operations at the Greenbrier resort -- which went bankrupt in March and was then sold off to a West Virginia coal executive -- CSX earned 72 cents per share. CSX had owned the Greenbrier since 1910.

Analysts had on average expected earnings per share for the quarter of 62 cents, according to Reuters Estimates.

CSX said revenue in the quarter fell more than 24 percent to $2.19 billion from $2.91 billion a year ago.

Freight volumes in the quarter were down 21 percent.

The major U.S. railroads have so far weathered the downturn well, posting robust profits in recent quarters despite weak freight volumes, thanks to strong discipline on pricing. Analysts have worried, however, that a prolonged recession will put the railroads under pressure to lower their freight rates.

CSX shares rose 3.3 percent to $33.60 after closing at $32.54 on the New York Stock Exchange. (Reporting by Nick Carey; Editing by Gary Hill)