JACKSONVILLE, Fla.,
July 14, 2015 /PRNewswire/ --
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
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, 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/csx-corporation-announces-all-time-record-quarterly-financial-results-300113118.html
SOURCE CSX Corporation