CSX Corporation Announces All-Time Record Quarterly
Financial Results
Highlights:
. Quarterly operating income more than $1 billion for the
first time in company history
. All-time record operating ratio of 66.8 percent
. Improving service measurements and industry-leading safety
results
JACKSONVILLE, Fla. - July 14, 2015 - CSX Corporation (NYSE:
CSX) announced financial results for the second quarter of 2015, including net
earnings of $553 million, or an all-time record $0.56 per share, an increase
from $529 million, or $0.53 per share, in the second quarter of 2014.
Revenue declined 6 percent, as pricing gains were more than
offset by the impact of lower fuel recovery, a 1 percent volume decline and
changing business mix. At the same time, continued low fuel prices and savings
from efficiency initiatives reduced expenses by 9 percent. As a result, CSX
delivered record operating income of more than $1 billion for the quarter and a
record-low operating ratio of 66.8 percent.
"While we saw challenges in a number of markets, CSX
employees delivered an even safer, more reliable and more differentiated
service product this quarter," said Michael J. Ward, chairman and chief
executive officer. "We expect the momentum in network performance we saw
in the second quarter to accelerate, continuing to create value for our
customers and shareholders."
CSX expects to deliver mid-to-high single digit earnings per
share growth for 2015, although the upper end of that range has become more
challenging given the current energy environment. With low natural gas prices and high
inventory levels continuing to reduce utility coal demand, CSX now expects
domestic coal volume to decline by approximately 10 percent for 2015 and the
outlook for export coal volume remains approximately 30 million tons for the
year. The company also expects meaningful margin expansion as it progresses
towards a full-year operating ratio in the mid-60s longer term.
CSX executives will conduct a quarterly earnings conference
call with the investment community on July 15, 2015, from 8:30 a.m. to 9:30
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 through the company's website at http://investors.csx.com and on Form
8-K with the Securities and Exchange Commission.
About CSX and its Disclosures
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.
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).
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 c
ompany 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