Slide 1: 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, margins, volumes, rates, cost
Slide 2: Executive Summary
Executive Summary Michael Ward Chairman and Chief Executive Officer Second quarter performance . . . Volume 1,595K Revenue $2,704M Operating Income $840M Operating Ratio 68.9% EPS $0.47 Earnings Per Share Revenue declines 12% $0.56 — Lower volume and fuel recovery, along with mix, more than offset
Slide 3: Financial Review: Second Quarter Results
Financial Review Frank Lonegro Executive Vice President Chief Financial Officer Second quarter earnings summary . . . Second Quarter Results Dollars in millions, except EPS 2016 2015 Variance Revenue $ 2,704 $ 3,064 (12%) Expense 1,864 2,047 9% Operating Income $ 840 $ 1,017 (17%) Interest Expense (
Slide 4: Overall outlook for third quarter is down
Overall outlook for third quarter is down Outlook Markets Drivers Automotive North American light vehicle production remains strong Favorable Minerals New fly ash business and construction strength Agricultural Products Low commodity prices and U.S. dollar impacting business Chemicals
Slide 5: Financial wrap-up
Financial wrap-up . . . Second quarter results reflect challenging freight conditions — Strong pricing, efficiency gains, resource reductions partially mitigate volume decline Capital investment now expected to be $2.7 billion in 2016 — Increase driven by accelerating payment of locomotive purch
Slide 6: Relentless pursuit of excellence
Relentless pursuit of excellence . . . 11