Csx Corporation · NASDAQ:CSX
Csx — Baird 2010 Industrial Conference
8 slides from Csx's conference presentation, Nov 10, 2010
Slide 1: Forward-Looking Statements
11 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-savin
Slide 2: CSX targeting 65% Operating Ratio within five years
CSX targeting 65% Operating Ratio within five years Operating Ratio 77.7% 77.6% 75.6% 74.9% 72.3% 65.0% 2006 2007 2008 2009 LTM Target 33 Formula for success evolves for 2010 and beyond Core pricing above inflation First Three Quarters First Three Quarters sustainable long-term Volume (000) O.I. (
Slide 3: CSX has emerged stronger and more productive
CSX has emerged stronger and more productive Productivity Savings in Millions $581 $317 Rightsizing $138 $193 $142 $130 – $150 $264 2006 2007 2008 2009 2010F Process Process Improvement Improvement Teams Teams (PIT) (PIT) Locomotives Locomotives Infrastructure Infrastructure Cars Cars & & Terminals
Slide 4: Higher efficiency driving strong incremental margins
Higher efficiency driving strong incremental margins Incremental Operating Margins and Volumes Year-Over-Year Improvement Incremental Margin Volume Growth (YOY) This performance continues near term 64%* 61% 46% 13% 10% 31% 5% (7%) Q4 2009 Q1 2010 Q2 2010 Q3 2010 * Adjusted for 2010 property sale and
Slide 5: Carload TSI builds on One Plan improvements
Carload TSI builds on One Plan improvements 2004 Environment Current Environment On-time On-time Originations Originations ~~ 50% 50% On-time On-time Originations Originations ~80% ~80% Arrivals Arrivals ~~ 40% 40% Arrivals Arrivals ~70% ~70% Terminal Terminal dwell dwell ~30 ~30 hour
Slide 6: Competitive advantages drives long-term growth
Competitive advantages drives long-term growth CSX serves every major CSX has most diverse portfolio market in the eastern U.S. among North American Rails Percent of Revenue Chicago AU MT CH IN 8% 5% 15% New York 12% . PF St Louis 4% Memphis AG Charleston 10% Jacksonville FC New Orleans CO FP 2% EM
Slide 7: So what does this all mean for CSX shareholders
So what does this all mean for CSX shareholders Volume Broad-based, steady growth Revenue Built on strong service, price and volume Margins Operating leverage continues ROIC Strong returns 13 13 CSX will continue to balance its capital deployment Capital Spending Annual Dividends Cumulative Capital
Slide 8: Wrap-up
Wrap-up . . . CSX driving towards an operating ratio of 65 percent — Volume, price and productivity are key components Competitive advantages of the CSX rail network — Strengthening infrastructure with strategic investments Growth near-term through “charted waters” provides CSX with strong ear