CSX announces 3Q 2017 earnings
(Source: CSX press release, October 17, 2017)
JACKSONVILLE, Fla. — CSX today announced third quarter 2017 net earnings of $459 million, or $0.51 per share, up from $455 million, or $0.48 per share, in the same period last year. Excluding a $1 million restructuring charge in this year’s third quarter results, adjusted earnings per share remain at $0.51 as shown in the table at the link above.
“The company’s results for the third quarter reflect the resiliency of Precision Scheduled Railroading, even during times of transition,” said E. Hunter Harrison, president and chief executive officer. "With that transition largely behind us, we are now intensely focused on driving superior service for our customers and lasting value for our shareholders.”
Revenue for the third quarter increased 1 percent when compared to the previous year, supported by core pricing gains and offset by the impact of unfavorable mix. Expenses declined $2 million year over year with efficiency gains of $95 million more than offsetting the cost of inflation and fuel costs that were 19 percent higher on a per gallon basis when compared to the same quarter last year.
Total volume for the quarter was stable, while operating income improved 4 percent to $876 million and the operating ratio improved 90 basis points to 68.1 percent. Given the significant progress made to date, the company has completed the $1.5 billion share repurchase program that was announced in April 2017 and upsized in July 2017, reflecting management’s confidence in the company’s future.
As CSX advances the implementation of Precision Scheduled Railroading, it remains on track to achieve record efficiency gains. Adjusting for restructuring charges, CSX expects to deliver a full-year operating ratio around the high end of the mid-60s, earnings per share growth of 20-25 percent off the 2016-reported base of $1.81, and free cash flow before dividends of around $1.5 billion (see non-GAAP statements below).
CSX executives will conduct a conference call with the investment community this morning, October 17, 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.
Tuesday, October 17, 2017
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