CSX announces record second-quarter 2014 results, reaffirms guidance and increases capital investments
(Source: CSX press release, July 16, 2014)
JACKSONVILLE, Fla. – July 15, 2014 – CSX Corporation today announced second-quarter net earnings of $529 million, or $0.53 per share, up from $521 million, or $0.51 per share in the same quarter of 2013.
For the quarter, revenue increased 7 percent to an all-time record $3.2 billion on volume growth of 8 percent, with strength across CSX’s major markets. The higher revenues helped deliver record operating income of nearly $1 billion and an operating ratio of 69.3 percent.
• Leveraged strong growth environment to produce all-time quarterly records for revenue, operating income, and earnings per share;
• Full-year modest earnings growth still expected for 2014, with double-digit earnings growth and margin expansion expected to resume in 2015; and
• Increasing 2014 investment by approximately $100 million to $2.4 billion to support sustainable growth
“To propel service and capture growth opportunities, CSX is adding front-line personnel and making targeted investments in infrastructure and freight cars to efficiently grow our business and create competitive advantages for our customers,” said Michael J. Ward, chairman, president and chief executive officer. “With the broad-based economic momentum we are seeing, the core earning strength of this company is improving and driving value for shareholders.”
In addition to the positive economic environment, secular growth trends in the intermodal and oil and gas markets are contributing to CSX’s expectation for modest full-year earnings growth in 2014. As it capitalizes on these growth opportunities and continues to invest in its service product, the company remains confident in its ability to sustain double-digit earnings growth and margin expansion for its shareholders beginning in 2015. The company also expects to sustain a mid-60s operating ratio longer-term.
These expectations are the foundation for the increase in this year’s capital investment of approximately $100 million. The increase further enhances key infrastructure and adds freight cars to help drive long-term growth.
CSX executives will conduct a quarterly earnings conference call with the investment community on July 16, 2014, 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 on the company’s website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.
Wednesday, July 16, 2014
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