Csx Corporation · NASDAQ:CSX
Csx — 2013 Bank of America Merrill Lynch Global Transportation Conference
10 slides from Csx's conference presentation, May 16, 2013
Slide 1: Forward-Looking Statements
Wells Fargo 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,
Slide 2: Presentation overview
Presentation overview . . . CSX has a long-term proven track record of success — Performance has been sustained even through challenging business conditions Company’s network reaches all major eastern markets — Connects population centers, ports, manufacturing and natural resources Business po
Slide 3: Volume decline and mix shift has been significant
Volume decline and mix shift has been significant Volume Merchandise decline Units in Thousands — Industrial and housing economies Merchandise Intermodal Domestic Coal Export Coal have suppressed recovery 7,358 6,409 Intermodal growth 24% 6% — Driven by highway conversions 14% and new customers
Slide 4: Network well positioned for eastern U.S. growth
Network well positioned for eastern U.S. growth Connects all five eastern Montreal Northeast mega-regions and ports Midwest Boston Chicago Serves nearly two-thirds of New York the nation’s population Philadelphia Washington Ports connect U.S. resources St Louis Hampton Roads and manufacturing
Slide 5: Gas prices have risen, but inventories remain high
Gas prices have risen, but inventories remain high Domestic Coal Henry Hub Natural Gas Utility Stockpiles Price (per mmbtu) Millions of Short Tons Nat Gas PRB ILB NAPP CAPP Total North South $6.00 120 $5.00 90 $4.00 $3.00 60 $2.00 30 $1.00 $0.00 0 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Apr-11 Oct-11 Apr
Slide 6: H2R, global consumption drive long-term growth
H2R, global consumption drive long-term growth Intermodal Domestic Eastern Market U.S. International Trade 15 Million Units Dollars in Billions 2012 Eastern Intermodal Loads Opportunity Imports Exports $14.2 $13.6 $12.6 $12.9 $12.3 $5.9 9.3 $5.3 $5.6 $5.0 $5.2 5.8 $7.4 $7.6 $8.0 $8.3 $7.3 Freight vo
Slide 7: Industrial sector driven by energy renaissance
Industrial sector driven by energy renaissance Industrial Sector Natural Gas Advances in drilling technology Price in U.S. Dollars unlock cheap U.S. shale gas — Crude demand growing; frac sand and other inputs also increasing $14.35 $12.90 U.S. energy cost advantage is $11.06 spurring new invest
Slide 8: Housing market continues improving off low base
Housing market continues improving off low base Construction Sector Housing starts beginning to U.S. Housing accelerate in 2013 Starts in Thousands — 42% growth from March run rate Decade Average Historical Average required to reach historical average 1,768 1,492 1,536 Housing starts drive about
Slide 9: Long-term earning power supports distributions
Long-term earning power supports distributions EPS Project 10-15% CAGR through 2015 off 2013 base Growth — Expect 2013 EPS to be flat to slightly down from 2012 Operating Targeting a high-60’s operating ratio by 2015 Ratio — Operating ratio in the mid-60’s remains focus longer-term Remains unc
Slide 10: 2013 Bank of America Merrill Lynch Global Transportation Conference
2013 BANK OF AMERICA MERRILL LYNCH GLOBAL TRANSPORTATION CONFERENCE
CSX — 2013 Bank of America Merrill Lynch Global Transportation Conference on 6ix