Monday, May 19, 2014

CSX 2013 Annual Report Highlights

Received the following via email. 

CSX 2013 Annual Report Highlights Industry-Leading Safety, Highest-Ever 
Customer Satisfaction and Record Financial Performance

JACKSONVILLE, Fla. - March 31, 2014 - CSX (NYSE: CSX) is in the midst of an 
"exciting and transformative time," leveraging the most diverse portfolio in 
company history, wrote Michael Ward, CSX chairman, president and chief 
executive officer, in the company's 2013 Annual Report delivered this past 

"The CSX you see today has overcome a challenging macroeconomic 
environment while transforming itself to leverage the growth opportunities 
that exist in nearly all of its businesses," Ward wrote. "Today, CSX is a 
vibrant, healthy company that is meeting an essential need for the country 
and driving service excellence for our customers while investing in our 
infrastructure, employees and the communities that we serve."

A combination of macro forces and strategic investments propelled CSX to 
strong performance despite the challenging external environment, including 
the slowly recovering economy and transformation in the energy markets. The 
company now enjoys the most diverse portfolio in its history, as growth in the
merchandise and intermodal businesses help to offset declining coal revenue.

The company's Annual Report outlines actions to further capitalize on growth 
opportunities and meet strategic challenges, including:

- Investing to support changes in energy markets, which are creating new 
opportunities for job growth, manufacturing resurgence and energy 
- Ongoing investment in double-stack intermodal capabilities through the 
National Gateway and new or expanded regional terminals;
- Continued pursuit of record customer satisfaction through improved 
communication and collaboration;
- Consistently strong safety performance, building on CSX's performance as 
the nation's safest Class I railroad in 2013, with the fewest accidents and 
injuries; and
- Focus on improving the company's environmental footprint, increasing 
sustainable development activities and amplifying engagement with local 

CSX continues to place a high priority on investing in critically needed 
transportation infrastructure while rewarding investors through dividends and 
share repurchases. In 2013, the company invested $2.3 billion in the network and
will invest another $2.3 billion in 2014 to support long-term value creation for 
shareholders. The company is also focused on returning value to shareholders in 
the near term. In 2013, CSX paid dividends of 59 cents per share, up nine 
percent from the year before, and announced a new $1 billion share buyback 

These value-creating activities build on a sustained track record of delivering 
shareholder returns. Over the past decade, CSX increased operating income by 
nearly 600 percent and improved operating ratio by more than 2,200 basis points,
while driving growth in earnings per share from continuing operations of nearly
2,000 percent. As a result, CSX shareholders have seen a total return on their 
investment of nearly 500 percent, easily outpacing the broader market.

As the coal headwinds subside, investments in intermodal and other markets 
take hold, and operations build on past success to drive efficiency and 
improving returns, CSX expects to generate double-digit earnings per share 
growth for its shareholders on a sustainable basis. In addition, the company 
continues to focus on achieving a mid-60s operating ratio long-term.

Full text of the CSX 2013 Annual Report, including Ward's letter to 
shareholders, can be found at

About CSX
CSX, based in Jacksonville, Florida, is a premier transportation company. It 
provides rail, intermodal and rail-to-truck transload services and solutions to 
customers across a broad array of markets, including energy, industrial, 
construction, agricultural, and consumer products. For more than 185 years, 
CSX has played a critical role in the nation's economic expansion and 
industrial development. Its network connects every major metropolitan area 
in the eastern United States, where nearly two-thirds of the nation's 
population resides. It also links more than 240 short-line railroads and more 
than 70 ocean, river and lake ports with major population centers and small 
farming towns alike. More information about CSX Corporation and its 
subsidiaries is available at Like us on Facebook 
( and follow us on Twitter 

Melanie Cost