Csx Corporation · NASDAQ:CSX
Csx — Cowen and Company's 10th Annual Global Transportation Conference (September 2017)
15 slides from Csx's conference presentation, Sep 6, 2017
Slide 1: CSX Corporation - Cowen & Company Global Transportation Conference
CSX CORPORATION COWEN & COMPANY GLOBAL TRANSPORTATION CONFERENCE Progressing Forward
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: CSX's recent performance has been range bound
CSX’s recent performance has been range bound CSX Operating Ratio CSX’s financial performance has been relatively flat since 2011 85% ― Offset ~$2B Coal revenue decline, but made 75% little progress relative to the industry 65% Service performance has had 55% 2011 2012 2013 2014 2015 2016 peaks
Slide 5: CSX is undergoing transformational change
CSX is undergoing transformational change Precision Scheduled Railroading rollout has been rapid ― Implementing core tenets on an accelerated basis Now focused on executing and refining operating plan ― Aligning field leaders with Precision Railroading and new regional structure Resources supp
Slide 6: Precision Scheduled Railroading yard update
Precision Scheduled Railroading yard update CSX Hump Terminals Transitioning hump yards Transitioning operations to flat-switching ― Started with twelve; seven have been Transitioned to flat-switching operations converted to flat switching operations Hump Terminals ― Two to four hump yards likely
Slide 7: Significant operating plan changes now in effect
Significant operating plan changes now in effect Balanced operating plan normalizes flow of assets ― Train size down during Q2; significant locomotive and car reductions Converting unit trains into merchandise batch network ― Improves asset utilization and is helping drive train length increases
Slide 8: Service measures took step back; have stabilized
Service measures took step back; have stabilized Significant Derailments Train Velocity Terminal Dwell Cars Online (mph) (hours) 15.5 145.7 13.6 11.9 11.5 139.7 WK 26 WK 35 WK 26 WK 35 WK 26 WK 35 Note: Metrics reported using new CSX definitions; details available at www.csx.com/servicemetrics 8
Slide 9: Resources support new train plan
Resources support new train plan Train Crew Delay Hours Average Daily Trains Holding for Power 2014 – 2017 YTD by Week 2014 – 2017 YTD by Week 2017 2016 2014 2017 2016 2014 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 New operating plan has
Slide 10: Now focused on operating plan execution
Now focused on operating plan execution CSX Network Network is now aligned with New regions represented by colored lines Precision Railroading plan ― Hump conversions and new operating unit structure flow from revised train plan Selkirk, NY Developing decision-making Willard, OH ability of front
Slide 11: Third quarter volume up modestly during transition
Third quarter volume up modestly during transition Year-Over-Year Volume Growth First Quarter Second Quarter Third Quarter to Date 11% 9% 7% 7% 6% 5% 4% 3% 3% 2% 2% 2% 1% 1% 1% 0% (1%) (3%) (3%) (4%) (7%) Domestic International Industrial Construction Agricultural Coal Total Intermodal Intermodal Se
Slide 12: Ahead of pace on workforce reductions
Ahead of pace on workforce reductions CSX Employees in Thousands Year-to-date total workforce Union Management reduction is now 3,700 27.3 ― Includes reduction of over 1,000 26.0 contractors / consultants 25.5 24.6 Employee reduction now 2,700 versus year-end 2016 ― Includes management restructu
Slide 13: Remain on track for record productivity in 2017
Remain on track for record productivity in 2017 Train Length Locomotive Efficiency Fuel Consumption Feet GTM’s per Horsepower Average Weekly Gallons in Millions 6,855 103.8 8.8 100.9 6,560 8.1 93.5 7.6 6,430 Q1 '17 Q2 '17 Q3 '17 Q1 '17 Q2 '17 Q3 '17 Q1 '17 Q2 '17 Q3 '17 Note: Third quarter 2017 effi
Slide 14: Financial outlook remains strong for 2017
Financial outlook remains strong for 2017 2017 guidance1 impacted by transitional issues in Q3 ― Operating ratio now around high end of mid-60s; still with record efficiency gains ― EPS growth of 20% – 25% off the 2016 reported EPS of $1.81 ― Free Cash Flow before dividends still expected to be ar
Slide 15: CSX Corporation
CSX CORPORATION COWEN & COMPANY GLOBAL TRANSPORTATION CONFERENCE Progressing Forward
CSX — Cowen and Company's 10th Annual Global Transportation Conference (September 2017) on 6ix