CSX CFO Updates Volume Expectations and Reaffirms Second
Quarter and Full-Year Earnings Guidance
JACKSONVILLE, Fla. - June 3, 2015 - CSX (NYSE: CSX) Chief
Financial Officer Fredrik Eliasson today reviewed the company's quarter-to-date
volume and service performance and reaffirmed second quarter and full-year 2015
earnings expectations at the Deutsche Bank Global Industrials & Basic
Material Conference in Chicago.
Eliasson also reviewed the company's decade of strong
financial performance, during which CSX expanded margins more than 1,600 basis
points and delivered average annual growth in earnings per share of 20
percent. This performance was achieved
while managing through a significant decline in the company's coal business,
historically its most profitable market.
"While overall volume is tracking slightly below the
levels in the second quarter of last year, service is improving steadily and we
remain on track to deliver second quarter earnings per share that are flat to
slightly up," Eliasson said.
"Delivering excellent service continues to underpin CSX's ability
to create strong shareholder value by pricing above inflation, driving ever
more efficient operations, and growing merchandise and intermodal businesses
faster than the economy."
Key service measures continue to improve in the second
quarter, as resources come on line in critical areas of the network. On-time
originations and arrivals, dwell time and velocity have all improved during the
quarter, and more meaningful improvements are expected in the second half of
the year.
The company's intermodal traffic, its main growth market, as
well as its construction sector are producing volume growth
quarter-to-date. At the same time, CSX
sees increasing headwinds in its coal markets.
Full-year domestic coal volume is expected to be down at least five
percent reflecting low natural gas prices, and export coal volumes are expected
to decline to 30 million tons for the year as the stronger U.S. dollar and
overseas commodity prices reduce global demand for U.S. coal.
For 2015, CSX continues to expect earnings per share growth
in the mid-to-high single digit range and meaningful margin expansion as it
progresses toward a mid-60s operating ratio longer-term.
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