JACKSONVILLE, Fla.,
April 14, 2015 /PRNewswire/ --
Highlights:
- Double-digit growth in operating income, net earnings and
earnings per share
- Quarterly dividend increases 13 percent, effective in June
- New $2 billion share repurchase
program
CSX Corporation (NYSE: CSX) today announced first-quarter 2015
net earnings of $442 million, an 11
percent increase from $398
million in the same period last year. The company also
generated earnings per share of $0.45, a 13 percent increase from $0.40 per share in the first quarter of 2014.
Revenue in the quarter was $3.0
billion, driven by growth across many of CSX's markets and
an improved pricing environment, partially offset by the impact of
low natural gas prices, lower fuel recoveries and the strong U.S.
dollar. At the same time, the benefit of lower fuel prices and
cost-saving initiatives more than offset higher inflation and
volume-related costs in the quarter. As a result, operating income
increased by 14 percent to $843
million and the operating ratio improved 330 basis points to
72.2 percent.
"In this dynamic economic and business environment, CSX's core
earnings remain strong and we are continuing our drive to provide
excellent service for our customers and value for our
shareholders," said Michael J. Ward,
chairman and chief executive officer. "Our commitment and
confidence in CSX's future is underscored by the positive
shareholder actions we're taking today."
The CSX Board of Directors has approved an increase in the
quarterly dividend and a new share repurchase program. The 13
percent increase in the dividend, to $0.18 per share, is payable on June 15, 2015 to shareholders of record at the
close of business on May 29, 2015.
This is the 13th increase in 10 years, representing a 26
percent compound annual growth rate during that time. The new,
$2 billion share repurchase program
is expected to be completed over the next 24 months. This follows
the successful completion of CSX's previous repurchase plan, during
which the company bought back $1
billion worth of shares. Since 2006, CSX has repurchased
nearly $9 billion in shares.
CSX executives will conduct a quarterly earnings conference call
with the investment community on April 15,
2015, 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 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, 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 nearly 190 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
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 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.
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SOURCE CSX Corporation