CSX CFO Reviews Volume and Earnings Expectations for 2015
JACKSONVILLE, Fla. - May 14, 2015 - CSX (NYSE: CSX) Chief
Financial Officer Fredrik Eliasson today discussed the company's performance
and second quarter volume and earnings projections at the Bank of America
Merrill Lynch 2015 Transportation Conference in Boston.
Eliasson highlighted the financial performance over the past
decade, during which CSX delivered a compound annual growth rate in earnings
per share of 20 percent, despite the loss of nearly $900 million in coal
revenue over the last few years.
"We have delivered strong shareholder value by
remaining focused on our three key value levers: pricing above inflation,
driving ever more efficient operations, and growing our merchandise and
intermodal businesses faster than the economy," Eliasson said. "CSX
is emerging from the energy transition a stronger company with a more
diversified business mix, which has been evident over the last three quarters
in which we have delivered double-digit earnings growth and significant margin
expansion."
Eliasson outlined the company's view of second quarter
volume, which is tracking slightly below expected levels due to very strong
comparisons to last year. However, thanks to improving service levels and asset
utilization, the company still expects second quarter EPS growth that is flat
to slightly up compared to last year.
For the full year, CSX continues to expect EPS growth in the
mid-to-high single digit range, as well as meaningful margin expansion as the
company makes progress toward a mid-60s operating ratio. Earnings growth this
year will be driven predominantly by accelerating pricing performance and
productivity gains approaching $200 million as the company cycles strong volume
comparisons and additional headwinds coal.
The foundation of CSX's strategy is delivering excellent
service to customers. To that end, the
company is making key resource investments to enhance service to the levels it
produced prior to last year, and position the CSX to take advantage of the
long-term growth opportunities present across nearly all of the markets it
serves.
About CSX Disclosures and the Company
This announcement, as well as additional financial
information, is available on the company's website at
http://investors.csx.com. CSX also uses
social media channels to communicate information about the company. Although
social media channels are not intended to be the primary method of disclosure
for material information, it is possible that certain information CSX posts on
social media could be deemed to be material. Therefore, we encourage investors,
the media, and others interested in the company to review the information we
post on Twitter (http://twitter.com/CSX) and on Slideshare
(http://www.slideshare.net/HowTomorrowMoves).
The social media channels used by CSX may be updated from time to time.
More information about CSX Corporation and its subsidiaries
is available at www.csx.com and on Facebook
(http://www.facebook.com/OfficialCSX).
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 farming towns
alike.
Contact:
David Baggs, Investor Relations
904-359-4812
Melanie Cost, Corporate Communications
904-359-1702