JACKSONVILLE, Fla., Nov. 30, 2016 (GLOBE NEWSWIRE) -- CSX Corporation (Nasdaq:CSX) Executive Vice President and Chief Financial Officer Frank Lonegro updated investors and analysts today at the Credit Suisse 4th Annual Industrials Conference regarding the company’s expectations for fourth quarter earnings per share and volume.
“We now expect fourth-quarter earnings per share on a reported basis to be flat to slightly up, as macroeconomic headwinds impacting the company’s volume are moderating,” Lonegro said. “At the same time, a recent operating property sale will now offset the impact of a debt refinancing charge announced earlier in the quarter.”
Quarter-to-date volume has declined three percent overall, and many markets are showing more moderate declines than in previous quarters. Coal in particular is showing sequential volume stabilization and is essentially flat in the fourth quarter to date. With macroeconomic headwinds moderating, Lonegro indicated that total volume is now expected to decline in the low-to-mid single digit range on a comparable 13-week basis, and expected to be flat to slightly up including the extra week that is part of CSX’s 2016 accounting year.
Lonegro also highlighted the results of CSX’s aggressive efficiency initiatives. Through the third quarter, CSX has delivered about $550 million of cost savings, which includes both efficiency initiatives and volume-related savings. He reinforced CSX’s expectations for full-year 2016 efficiency savings of around $400 million, including about $100 million from structural changes in the coal network, $150 million from normal productivity initiatives, and the balance from key initiatives such as train length which has increased 20 percent over the past two years.
Looking forward, as CSX continues to drive record efficiency and as its business portfolio transitions to more merchandise- and intermodal-centric markets, the company remains focused on providing a consistent, reliable service product for customers, which is critical to drive growth, sustain strong pricing and ultimately create long-term value for shareholders. Becoming the CSX of Tomorrow involves delivering employee and customer excellence that supports shareholder value creation; transforming the network by redeploying investment from low-density lines to the higher-density outer triangle to drive service efficiency and growth; leveraging technology to further improve safety, resource efficiency and service; and delivering service excellence for customers, which enables growth and supports pricing that reflects the value of the CSX service product. All of these initiatives will contribute to achieving a mid-60s operating ratio longer-term.
About CSX and its Disclosures
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