Intermodal Investment Strategy Continues to Drive Growth for CSX
JACKSONVILLE, Fla., Nov. 6, 2013
JACKSONVILLE, Fla., Nov.6, 2013 /PRNewswire/ --Fredrik Eliasson, CSX (NYSE:
CSX) executive vice president and chief financial officer, discussed the
company's recent financial performance today at the Baird Industrials
Conference in Chicago, Ill. Eliasson reiterated expectations for 2013 earnings
per share growth that will be slightly up from last year despite continued
headwinds in both the export and domestic coal markets.
"The CSX team continues to overcome significant headwinds as the energy
markets evolve in favor of natural gas and away from coal," said Eliasson.
"During this transition, we have still been able to generate earnings per
share growth and value for shareholders as we quickly adapt to market changes
and carefully manage the things we can control the most. We are confident that
CSX will emerge an even stronger, more vibrant company as the operating
environment stabilizes and the economy improves."
Eliasson highlighted the sustained growth in CSX's merchandise and intermodal
businesses, which now comprises more than 80 percent of the company's volume.
The company expects that business to continue growing at a rate above the
general economy. Intermodal, a key driver of growth, now represents 40 percent
of overall volume and is expected to increase further, reflecting the
attractive economic value of converting freight from highway to rail.
CSX employs a dual intermodal strategy that includes both high-density
corridors and a hub-and-spoke philosophy that also creates service density to
open new small and medium-sized markets – a strategy the company believes is a
differentiator in the intermodal marketplace. CSX also recently completed the
first phase of double-stack clearances in its National Gateway initiative,
which will create a more efficient rail route to link Mid-Atlantic ports with
Midwestern markets. When the National Gateway is complete in 2015, the
percentage of the company's intermodal traffic moving in double-stack lanes
will be in the mid-90s.
To prepare for long-term growth, the company is building new terminals to
expand its reach in markets such as central Florida, Pittsburgh and Montreal.
In addition, the company continues to invest in existing terminals to further
increase efficiency throughout its network, such as an expansion of its
state-of-the-art Northwest Ohio hub, which opened in 2011 and has helped
alleviate historic congestion in Chicago while opening up connectivity to
markets in the Midwest.
Underscoring expectations for growth, Eliasson reaffirmed the company's
long-term guidance for earnings per share, which are expected to grow over a
two year period at an average rate of 10 to 15 percent through 2015 off the
2013 base, although that is more challenging in the near term given the coal
environment. The company remains focused on sustaining an operating ratio in
the high-60s by 2015, and the mid-60s longer-term.
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 more than 185 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 small farming
towns alike. 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
SOURCE CSX Corporation
Contact: David Baggs, Investor Relations, 904-359-4812, Melanie Cost,
Corporate Communications, 904-359-1702
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