CSX Corporation Announces Record Second-Quarter Results,
Reaffirms Guidance and Increases Capital Investments
Highlights:
- Leveraged strong growth environment to produce all-time
quarterly records for revenue, operating income, and earnings per share
- Full-year modest earnings growth still expected for 2014,
with double-digit earnings growth and margin expansion expected to resume in
2015
- Increasing 2014 investment by approximately $100 million
to $2.4 billion to support sustainable growth
For the quarter, revenue increased 7 percent to an all-time
record $3.2 billion on volume growth of 8 percent, with strength across CSX's
major markets. The higher revenues helped deliver record operating income of
nearly $1 billion and an operating ratio of 69.3 percent.
"To propel service and capture growth opportunities,
CSX is adding front-line personnel and making targeted investments in
infrastructure and freight cars to efficiently grow our business and create
competitive advantages for our customers," said Michael J. Ward, chairman,
president and chief executive officer. "With the broad-based economic
momentum we are seeing, the core earning strength of this company is improving
and driving value for shareholders."
In addition to the positive economic environment, secular
growth trends in the intermodal and oil and gas markets are contributing to
CSX's expectation for modest full-year earnings growth in 2014. As it capitalizes on these growth
opportunities and continues to invest in its service product, the company
remains confident in its ability to sustain double-digit earnings growth and
margin expansion for its shareholders beginning in 2015. The company also expects to sustain a mid-60s
operating ratio longer-term.
These expectations are the foundation for the increase in
this year's capital investment of approximately $100 million. The increase further enhances key
infrastructure and adds freight cars to help drive long-term growth.
CSX executives will conduct a quarterly earnings conference
call with the investment community on July 16, 2014, at 8:30 a.m. Eastern time.
Investors, media and the public may listen to the conference call by dialing
1-888-EARN-CSX (888-327-6279) and asking for the CSX earnings call. Callers
outside the U.S. ,
dial 1-773-756-0199. Participants should dial in 10 minutes prior to the call.
In conjunction with the call, a live webcast will be accessible and
presentation materials will be posted on the company's website at
http://investors.csx.com. Following the earnings call, an internet replay of
the presentation will be archived on the company website.
This earnings announcement, as well as additional detailed
financial information, is contained in the CSX Quarterly Financial Report
available on the company's website at http://investors.csx.com and on Form 8-K
with the Securities and Exchange Commission.
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 www.csx.com. Like us on Facebook
(http://www.facebook.com/OfficialCSX) and follow us on Twitter
(http://twitter.com/CSX).
Forward-looking Statements
This information and other statements by the company may
contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act with respect to, among other items: projections and
estimates of earnings, revenues, margins, volumes, rates, cost-savings,
expenses, taxes, liquidity, capital expenditures, dividends, share repurchases
or other financial items, statements of management's plans, strategies and
objectives for future operations, and management's expectations as to future
performance and operations and the time by which objectives will be achieved,
statements concerning proposed new services, and statements regarding future
economic, industry or market conditions or performance. Forward-looking
statements are typically identified by words or phrases such as "will,"
"should," "believe," "expect,"
"anticipate," "project," "estimate,"
"preliminary" and similar expressions. Forward-looking statements
speak only as of the date they are made, and the company undertakes no
obligation to update or revise any forward-looking statement. If the company
updates any forward-looking statement, no inference should be drawn that the
company will make additional updates with respect to that statement or any
other forward-looking statements.
Forward-looking statements are subject to a number of risks
and uncertainties, and actual performance or results could differ materially
from that anticipated by any forward-looking statements. Factors that may cause
actual results to differ materially from those contemplated by any forward-looking
statements include, among others; (i) the company's success in implementing its
financial and operational initiatives; (ii) changes in domestic or
international economic, political or business conditions, including those
affecting the transportation industry (such as the impact of industry
competition, conditions, performance and consolidation); (iii) legislative or
regulatory changes; (iv) the inherent business risks associated with safety and
security; (v) the outcome of claims and litigation involving or affecting the
company; (vi) natural events such as severe weather conditions or pandemic
health crises; and (vii) the inherent uncertainty associated with projecting
economic and business conditions.
Other important assumptions and factors that could cause
actual results to differ materially from those in the forward-looking
statements are specified in the company's SEC reports, accessible on the SEC's
website at www.sec.gov and the company's website at www.csx.com.
Contacts:
David Baggs, Investor Relations
904-359-4812
Melanie Cost, Corporate Communications
904-359-1702