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CSX CFO Updates Expectations for Third Quarter Performance

9/7/2016 10:09:18 AM
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  • Third quarter earnings per share expected to decline slightly sequentially
  • Third quarter volume now expected to decline by high single digits year-over-year
  • Efficiency continues gaining momentum; full-year target now exceeds $350 million
  • Total coal tonnage for 2016 now expected to decline between 20 percent and 25 percent

JACKSONVILLE, Fla., Sept. 07, 2016 (GLOBE NEWSWIRE) -- CSX Corporation Executive Vice President and Chief Financial Officer Frank Lonegro updated investors and analysts today at the Cowen and Company 9th Annual Global Transportation Conference in Boston about the company’s third quarter expectations, full-year guidance and long-term strategy for managing a changing business profile.

“Third quarter earnings per share are expected to decline slightly from second quarter levels, based on high single digit volume reductions that are partially offset by improving efficiency benefits and strong pricing gains that reflect a service product that meets and exceeds customer expectations,” said Lonegro.

Lonegro also updated the company’s expectations for total full-year coal volume, noting export coal is now expected to be around 25 million tons for 2016, as global market conditions have shown modest improvement recently. As a result, total full-year coal tonnage is now expected to decline between 20 percent and 25 percent year-over-year.

In addition, reflecting the ongoing momentum in efficiency initiatives across the CSX network, Lonegro conveyed the company’s expectation that efficiency savings will now exceed $350 million for the full year.

Looking longer term, Lonegro further outlined the CSX of Tomorrow strategy that is designed to maximize opportunities in the company’s evolving business mix to drive earnings growth and margin expansion. In focusing on its high-density routes serving merchandise and intermodal growth, the company plans to redeploy capital to extend sidings that drive longer, more efficient trains; for technology automation to further enhance efficiency; and in intermodal terminals and double-stack clearance projects to capture additional share of the estimated 9 million truckload market opportunity in the east. These initiatives are designed to further CSX’s progress toward its target of a mid-60s operating ratio longer term.

About CSX and its Disclosures

CSX (Nasdaq: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 the company and its subsidiaries is available at www.csx.com and on Facebook (http://www.facebook.com/OfficialCSX).

David Baggs, Investor Relations

Melanie Cost, Corporate Communications

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