CSX Well-Positioned for Continued Profitable Growth as
Long-Term Trends Favor Rail Transportation
"By capitalizing on CSX's network reach, adapting to
evolving market conditions, including secular growth trends in intermodal and
changes in the energy markets, and deploying cash within a balanced framework,
CSX has delivered strong financial results for shareholders," Eliasson
said. "The investments CSX has made in market diversity and network reach,
coupled with freight demand projections in the next decade, have positioned the
company to continue delivering sustainable, profitable growth by capitalizing
on the efficiency of rail to serve the needs of a growing global
population."
The company's strong track record includes stock
appreciation for shareholders of more than 150 percent since 2006,
significantly outperforming the broader market. During that time, CSX nearly
doubled earnings per share, quintupled dividends and bought back more than $8
billion in stock. The company produced these results during a transformative
period that included a global financial crisis and recession, the collapse of
the housing market, and a transition in the energy markets that halved the
company's domestic coal volume.
Today, economic expansion is spurring broad-based growth
across nearly all markets that CSX serves, as the housing market continues to
recover, a second strong harvest is expected and the energy renaissance
continues to drive growth in the industrial sector. At the same time, the
company continues to leverage the secular trend in intermodal conversion and
expand key facilities to handle increasing demand across the network. With a
unique approach that combines a hub-and-spoke model with the more traditional
corridor service, CSX is well-positioned to capitalize on the nearly 9 million
truckloads in the East with the potential for intermodal conversion.
CSX continues to capitalize on these and other
opportunities, and in the third quarter, overall volume is growing at a rate
slightly higher than expected. The company is investing to accommodate this
growth, and while the network remains stable, gradual improvement is expected
to continue into 2015. As a result of these factors, the company now expects
earnings per share to be up slightly from the $0.45 recorded in the same period
last year, despite the increased costs to keep the network fluid and restore
higher service levels, as well as the cycling of certain prior-year benefits.
In addition, CSX continues to expect modest full-year earnings per share growth
for 2014.
Economic trends and the company's continued commitment to
leveraging high-growth opportunities underpin confidence in its ability to
return to generating double-digit earnings growth and margin expansion
beginning in 2015. Longer term, the company continues to target an operating
ratio in the mid-60s, and will continue generating shareholder value by
maintaining its focus on inflation-plus pricing, continually improving
efficiency across the business, and capitalizing on economic trends.
Investors can visit
http://investors.csx.com/phoenix.zhtml?c=92932&p=irol-irhome for more
information about CSX's financial performance.
About CSX
CSX, based in Jacksonville ,
Florida 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).
Contact:
David Baggs, Investor Relations
904-359-4812
Melanie Cost, Corporate Communications
904-359-1702