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: Fourth quarter performance
Executive Summary Michael Ward Chairman, President and Chief Executive Officer Fourth quarter performance . . . Volume 1,763K Revenue $3,192M Operating Income $901M Operating Ratio 71.8% EPS $0.49 Earnings Per Share Revenue increases 5% $0.49 — Driven by broad-based strength across nearly all mark
Slide 3: Full-year performance
Full-year performance . . . Volume 6,922K Revenue $12,669M Operating Income $3,613M Operating Ratio 71.5% EPS $1.92 Revenue in Billions Earnings Per Share Merchandise, Intermodal and Other Coal $1.92 $12.7 $11.8 $11.8 $12.0 $1.83 $1.79 $2.9 $2.9 $1.70 $3.7 $3.2 $9.8 $8.6 $9.1 $8.1 2011 2012 2013 201
Slide 4: Fourth quarter earnings summary; first quarter outlook is favorable
Fourth quarter earnings summary . . . Fourth Quarter Results Dollars in millions, except EPS 2014 2013 Variance Revenue $ 3,192 $ 3,032 5% Expense 2,291 2,219 (3%) Operating Income $ 901 $ 813 11% Interest Expense (133) (139) Other Income (net) 7 -- Income Taxes (284) (248) Net Earnings $ 491 $ 426
Slide 5: First quarter expense expectations; $2.5 billion capital investment in 2015
First quarter expense expectations . . . Average headcount expected to increase 4% versus the prior year Labor and Fringe Inflation estimated to be around $35 million Maintenance agreement expected to increase Labor & Fringe $15 million Maintenance agreement expected to decrease MS&O $15 mil
Slide 6: Financial wrap-up
Financial wrap-up . . . Modest earnings growth in 2014 despite headwinds — Strong volume growth offset service challenges and weak coal pricing Core earnings improvement more apparent — Broad-based strength across nearly all markets Expect double-digit EPS growth in 2015 — Profitable growth, p
Slide 7: Relentless pursuit of excellence
Relentless pursuit of excellence . . . 13