CSX Positioned Well for Near-Term Economic Improvement and Long-Term Growth in
the Freight Rail Industry
JACKSONVILLE, Fla., March 27, 2013
JACKSONVILLE, Fla., March 27, 2013 /PRNewswire/ --CSX is a better, faster and
more capable company than it was even one year ago, Michael Ward, the
company's chairman, president and chief executive officer wrote to investors
in the 2012 Annual Report delivered this week.
Last year the company successfully withstood a significant drop in its coal
business by making quick adjustments in its operations and focusing on the
mainstays of safety, service and productivity.
"Experience has shown that when CSX does those things well, we can turn good
conditions into great results, or bad conditions into better results," Ward
said, noting that employees led the major U.S. freight railroads in safety
last year, drove customer satisfaction levels to all-time highs and delivered
productivity savings of nearly $200 million.
Looking forward, the company believes that its key businesses other than coal
will outpace the slow, steady growth that is expected in the economy in 2013,
Ward said, and there is little reason the economy cannot gain momentum if
Congress is able to pass more meaningful legislation to improve the long-term
fiscal outlook and restore confidence.
"Our customers across many industries believe that America is primed for real
recovery, and so do we," Ward said.
He reiterated CSX's confidence in the long-term outlook for its industry,
which is based on a number of important factors:
oThe inevitable movement of more freight as the population and its
oThe pressing need to deliver freight efficiently between ports and people
as global trade continues to build;
oThe increasing congestion on the nation's highways, driving freight to
oThe re-industrialization of America as the country's efficient labor force
and relatively inexpensive energy combine to create cost advantages for
local or regional U.S. producers and demand for exports;
oThe challenges associated with labor, fuel and other costs at trucking
companies, which today are partnering with railroads for longer-haul
oThe nation's need for more environmentally friendly transportation
CSX's rail network connects some of the most active economic centers of the
world with small farming towns and seaports alike. The company plans to
invest in that network at a record $2.3 billion level this year, on top of
approximately $8 billion invested in the past four years. Those investments
are part of the company's balanced program of capital deployment overall,
including dividends and share repurchases.
Ward concluded his letter by thanking shareholders for their partnership and
belief in the company. "We hope that our quick response to the tough
conditions in 2012, and the responsible actions of our 32,000 employees, gave
you even more confidence in this team and the investments you have made in the
company," he said.
Full text of the CSX 2012 Annual Report, including Ward's letter to
shareholders, can be found at http://investors.csx.com.
CSX Corporation, based in Jacksonville, Fla., is one of the nation's leading
transportation companies, providing rail, intermodal and rail-to-truck
transload services. The company's transportation network spans approximately
21,000 miles, with service to 23 eastern states, the District of Columbia and
two Canadian provinces. CSX's network connects more than 240 short line
railroads and more than 70 ocean, river, and lake ports. More information
about CSX Corporation and its subsidiaries is available at www.csx.com. Like
us on Facebook (http://www.facebook.com/OfficialCSX) and follow us on Twitter
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 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.
SOURCE CSX Corporation
Contact: David Baggs, Investor Relations, 904-359-4812; or Gary Sease,
Corporate Communications, 877-835-5279
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