Csx Corporation · NASDAQ:CSX
Csx — Bank of America Merrill Lynch Global Transportation Conference 2010
16 slides from Csx's conference presentation, Jun 16, 2010
Slide 1: Bank of America Merrill Lynch Global Transportation Conference
[ How tomorrow moves ] 201 BANK OF AMERICA MERRILL LYNCH GLOBAL TRANSPORTATION CONFERENCE
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, volumes, rates, cost-savings,
Slide 3: Recent investor focus
Recent investor focus . . . Current business environment — Is growth sustainable, especially with Europe and China potentially slowing Prospects for growth beyond 2010 — How is the company situated for longer-term growth Sustainability of operating leverage for this year — Can the performance
Slide 4: Volume growth is improving in the second quarter
Volume growth is improving in the second quarter Year-Over-Year Volume Growth First Quarter Second Quarter 62% Automotive 64% 10% Merchandise 7% 16% Intermodal 14% 10% Coal (13%) 14% Total 5% Note: Second quarter reflects data through June 4, 2010 44
Slide 5: Exports and industrial driving overall coal growth
Exports and industrial driving overall coal growth Utility Industrial Export Year-Over-Year Year-Over-Year Year-Over-Year Volume Change Volume Change Volume Change 43% 80% (4%) 21% 8% (19%) Q1 2010 Q2 2010 Q1 2010 Q2 2010 Q1 2010 Q2 2010 Note: Volume data expressed as tons, with second quarter refle
Slide 6: Second half utility coal volumes are less challenged
Second half utility coal volumes are less challenged Weekly Utility Coal Shipments (tons) 2009 Weekly Volume 2009 Quarterly Average Weekly Volume 2010-to-Date Weekly Volume 3.5M 3.0M 2.5M 2.0M 1.5M 1.0M First Second Third Fourth Quarter Quarter Quarter Quarter Note: Data for 2010 is through June 4,
Slide 7: Global coal demand expected to remain strong
Global coal demand expected to remain strong Global Coal Consumption in Quadrillion BTUs 108 94 81 74 62 36 34 34 34 35 25 22 24 24 25 2005 2010 2015 2020 2025 North America Emerging Asia Rest of World Source: U.S. Energy Information Administration 77
Slide 8: Strong intermodal gains across both markets
Strong intermodal gains across both markets International Volume International is rebounding Year-Over-Year Change 22% from recession lows on import and export growth 1% New customer gains from (12%) (12%) (22%) enhanced network offerings 2006 2007 2008 2009 2010 Domestic Volume Year-Over-Year C
Slide 9: CSX's double-stack network nearly in place
CSX’s double-stack network nearly in place Key routes doubled stacked — Midwest to New York — Midwest to Florida Eastern port connectivity improving — National Gateway to Midwest — Massachusetts corridor — Northwest Ohio terminal Western connectivity in place — Strong western partnerships — En
Slide 10: Volume continues to build, although off historic lows
Volume continues to build, although off historic lows Year-To-Date Volume Growth through “charted Units in Thousands waters” likely to continue 17% 17% 3,263 Reduction Reduction Recent investments support 3,157 3,090 growth in “uncharted waters” 2,712 2,496 CSX well-positioned to handle increa
Slide 11: Operating leverage continues to drive efficiencies
Operating leverage continues to drive efficiencies . . . Year-Over-Year Change in Volume and Crew Starts First Quarter Second Quarter 11% Road Crew Starts (1%) 2% Local Crew Starts (4%) 4% Yard Crew Starts (3%) 7% Total Crew Starts (2%) 14% Volume 5% Note: Second quarter reflects data through June 4
Slide 12: Allowing CSX to keep resources lean
. . . allowing CSX to keep resources lean Active T&E Employees Active Locomotives 13,958 13,643 4,089 3,943 3,976 12,882 3,474 11,094 10,903 3,362 Down Down Down Down 22% 22% from from 15% 15% from from 2006 2006 2006 2006 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 YTD YTD Note: Data for 2010
Slide 13: CSX is well prepared as volume continues to build
CSX is well prepared as volume continues to build T&E Employees Furloughed Recalling furloughed T&E employees 2,533 to support growth and attrition 520 Peak Current Hiring employees in certain locations Locomotives Stored to also support growth and attrition 707 169 Locomotives and freight car
Slide 14: Core focus is driving shareholder value creation
Core focus is driving shareholder value creation Top-Tier TSR Price Productivity Growth Achieving value from Managing resources Most segments showing strong service product as volume returns growth over 2009 levels Leveraging of network Assets not returning on Volume still moving in capa
Slide 15: Wrap up
Wrap up . . . Business environment remains favorable Long-term growth prospects are positive Operating leverage is sustainable Price, productivity and volume driving margin expansion 15 15
Slide 16: Bank of America Merrill Lynch Global Transportation Conference
[ How tomorrow moves ] 201 BANK OF AMERICA MERRILL LYNCH GLOBAL TRANSPORTATION CONFERENCE
CSX — Bank of America Merrill Lynch Global Transportation Conference 2010 on 6ix