JACKSONVILLE, Fla., June 3, 2015 /PRNewswire/ -- CSX (NYSE: CSX) Chief Financial Officer Fredrik Eliasson today reviewed the company's quarter-to-date volume and service performance and reaffirmed second quarter and full-year 2015 earnings expectations at the Deutsche Bank Global Industrials & Basic Material Conference in Chicago.
Eliasson also reviewed the company's decade of strong financial performance, during which CSX expanded margins more than 1,600 basis points and delivered average annual growth in earnings per share of 20 percent. This performance was achieved while managing through a significant decline in the company's coal business, historically its most profitable market.
"While overall volume is tracking slightly below the levels in the second quarter of last year, service is improving steadily and we remain on track to deliver second quarter earnings per share that are flat to slightly up," Eliasson said. "Delivering excellent service continues to underpin CSX's ability to create strong shareholder value by pricing above inflation, driving ever more efficient operations, and growing merchandise and intermodal businesses faster than the economy."
Key service measures continue to improve in the second quarter, as resources come on line in critical areas of the network. On-time originations and arrivals, dwell time and velocity have all improved during the quarter, and more meaningful improvements are expected in the second half of the year.
The company's intermodal traffic, its main growth market, as well as its construction sector are producing volume growth quarter-to-date. At the same time, CSX sees increasing headwinds in its coal markets. Full-year domestic coal volume is expected to be down at least five percent reflecting low natural gas prices, and export coal volumes are expected to decline to 30 million tons for the year as the stronger U.S. dollar and overseas commodity prices reduce global demand for U.S. coal.
For 2015, CSX continues to expect earnings per share growth in the mid-to-high single digit range and meaningful margin expansion as it progresses toward a mid-60s operating ratio longer-term.
About CSX Disclosures and the Company
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 CSX Corporation and its subsidiaries is available at www.csx.com and on Facebook (http://www.facebook.com/OfficialCSX).
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.
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David Baggs, Investor Relations, 904-359-4812; Melanie Cost, Corporate Communications, 904-359-1702