Csx Corporation · NASDAQ:CSX
Csx — Dahlman Rose Global Transportation Conference 2009
17 slides from Csx's conference presentation, Sep 9, 2009
Slide 1: Dahlman Rose Global Transportation Conference September 2009
Dahlman Rose Global Transportation Conference September 2009 11
Slide 2: Forward-Looking Disclosure
Forward-Looking Disclosure This information and other statements by the company 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, cost-savings, expenses, or other
Slide 3: CSX Network is vital to America's economy
CSX Network is vital to America's economy CSX Network Network serves every major eastern metropolitan area Boston Chicago Links key industry and natural New York resource centers St. Louis Provides international access through all major ports Memphis Diverse business portfolio provides great
Slide 4: Economic recession impacting volume levels
Economic recession impacting volume levels Year-Over-Year Volume Change First Half Third Quarter-to-Date % of CSX Commodity Groups CSX Volume (32%) Industrial Chemicals 11% (26%) Segment Metals (23%) Housing Forest Products 12% (20%) Products Emerging Markets (19%) Consumer Automotive 35%
Slide 5: Productivity/rightsizing helping offset volume decline
Productivity/rightsizing helping offset volume decline First Half 2009 First Half 2009 CSX Cost Structure Year-Over-Year Change 46% Fixed and (10%) Indirect (14%) (19%) Long-term Short-term Variable Variable (43%) 29% Volume ST LT Fixed 25% Variable Variable Cost structure improvement delivered in c
Slide 6: Economy expected to remain weak through 2009
Economy expected to remain weak through 2009 Year-Over-Year Change Year-Over-Year Change in CSX Volume in GDP and IDP Q4-08 Q1-09 Q2-09 Q3-09 Industrial Production GDP 5% 5% 0% 0% (5%) (5%) (10%) (10%) (15%) (15%) (20%) (20%) (25%) (25%) Oct Dec Feb Apr Jun Aug Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010
Slide 7: CSX is preparing for changes in the economy
CSX is preparing for changes in the economy US Population Centers Operating strategy leverages ONE Plan and technology Midwest Northeast Boston Long-term fundamentals Chicago continue to favor railroads New York — Most efficient transportation — Most environmentally friendly Piedmont — Most sust
Slide 8: ONE Plan is the operational foundation
ONE Plan is the operational foundation ONE Plan is the platform for the scheduled train network Focus remains on optimizing service and efficiency Advanced technology applied to operations planning Network evaluation and optimization is continuous Merchandise Traffic Automotive Traffic 88
Slide 9: CSX network structure adjusts to demand changes
CSX network structure adjusts to demand changes Downgrading Buffalo terminal creates operating efficiencies Buffalo — Reduces operating expenses Willard — Allows for better use of capital Strategically positions the network for the long-term — Accesses new supply chains — Provides incremental ca
Slide 10: Network investments build on strategic advantage
Network investments build on strategic advantage CSX Network Reach Single-line reach into Florida, Key Strategic Advantage New England and Illinois Basin NW Ohio Transfer Yard National Gateway will link ports to producers and consumers Leveraging public-private partnerships for future growth N
Slide 11: Rail remains America's long-term freight solution
Rail remains America’s long-term freight solution Investment Required Infrastructure needs have Through 2035 in Billions gained national attention $5,000 Recovery and Reinvestment Act provides funding for rails Freight rails need to earn adequate returns $148 $198 Freight Rail Passenger Highwa
Slide 12: Freight railroads deliver significant public benefits
Freight railroads deliver significant public benefits Railroads are one of the safest and most Safe and Secure secure modes of surface transportation One intermodal train can carry the load of Efficient 280 trucks, reducing highway congestion A locomotive can haul a ton of freight more ““Green” Gree
Slide 13: Competitive environment shifting in favor of rails
Competitive environment shifting in favor of rails Trucking Industry Railroad Industry Highway congestion increasing Service quality improving Structural changes occurring Supply chains are expanding Regulatory restrictions continue Focus on “green” is increasing Overall capacity decli
Slide 14: CSX continues to create value for customers
CSX continues to create value for customers Service Reliability ONE Plan and customer 81% 79% focus driving strong service 51% 40% Supporting customers as they reformulate their supply On-time Departures On-time Arrivals chains Network Performance Driving solutions that reduce 29.0 carbon foot
Slide 15: Pricing remains in early stages of recovery
Pricing remains in early stages of recovery Inflation-Adjusted Pricing Indexed: 1981 = $100 Pre-deregulation, rail pricing kept pace with inflation During the first 23 years after the passage of the Staggers Act, rail pricing declined by 60% R2 $100 $51 $40 1967 1971 1975 1979 1983 1987 1991 1995 19
Slide 16: Strengthening position for long-term value creation
Strengthening position for long-term value creation Core earning power is resilient in current economy — First half results represent second highest earnings in company history Margins remain stable despite volume decline — Positions CSX to emerge stronger when the economy returns to growth Ma
Slide 17: Dahlman Rose Global Transportation Conference September 2009
Dahlman Rose Global Transportation Conference September 2009 17 17
CSX — Dahlman Rose Global Transportation Conference 2009 on 6ix