Slide 1: 2018 First Quarter CSX Earnings Conference Call
2018 FIRST QUARTER CSX EARNINGS CONFERENCE CALL
Slide 2: Forward Looking Disclosure
FORWARD LOOKING DISCLOSURE 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, margins, volumes, rates, cost
Slide 3: Non-GAAP Measures Disclosure
NON-GAAP MEASURES DISCLOSURE CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulati
Slide 4: Executive Summary
EXECUTIVE SUMMARY James M. Foote President and Chief Executive Officer
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Volume 1,532K Revenue $2,876M Operating Income $1,044M Operating Ratio 63.7% EPS $0.78 Earnings Per Share Operating Ratio $0.78 73.2% 69.4% $0.51 63.7% $0.39 53% Growth 570 bps Improvement 2017 2017 Adjusted 2018 2017 2017 Adjusted 2018 5
Slide 6: First Quarter Revenue Highlights
FIRST QUARTER REVENUE HIGHLIGHTS First Quarter Revenue Chemicals revenue lower due to reduced fly ash, plastics and energy-related shipments Flat Year over Year Auto revenues impacted by lower North Chemicals (2%) American vehicle production Automotive (4%) Agricultural and Food Product revenu
Slide 7: First Quarter Operating Highlights
FIRST QUARTER OPERATING HIGHLIGHTS Train Velocity Train Length (miles per hour) (feet) 17.3 6,833 6,780 6,886 16.2 16.2 14.2 14.0 6,560 6,430 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 Terminal Car Dwell GTMs per Available Horsepower* (hours) 12.1 108.6 112.4 11.5 10.9 10.6 10.4 104.2 101.5 9
Slide 8: Financial Review
FINANCIAL REVIEW Frank A. Lonegro EVP and Chief Financial Officer
Slide 9: First Quarter Earnings Summary
FIRST QUARTER EARNINGS SUMMARY First Quarter Income Statement Dollars in millions 2018 2017 Variance Revenue $ 2,876 $ 2,869 0% Expense Labor and Fringe 696 795 12% Materials, Supplies and Other 482 571 16% Depreciation 323 320 (1%) Fuel 255 218 (17%) Equipment and Other Rents 101 99 (2%) Restructur
Slide 10: Key First Quarter Financial Measures
KEY FIRST QUARTER FINANCIAL MEASURES Adjusted Free Cash Flow Capital Investments Before Dividends Distributions Dollars in Millions Dollars in Millions Dollars in Millions Dividends Buybacks $1,030 $441 $634 $651 $368 $836 $424 $258 17% Reduction 3% Growth 143% Growth $166 $194 Q1 2017 Q1 2018 Q1 20
Slide 11: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 12: 2018 Financial Outlook
2018 FINANCIAL OUTLOOK As previously stated, expect revenue up slightly ― Increased confidence given positive momentum heading into 2nd quarter Continuing to drive service improvements ― No longer required to have weekly calls with STB Driving significant efficiency gains ― Expect solid step d
Slide 13: CSX.com / Investors
|, osx ] CSX.COM / INVESTORS