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 First quarter performance . . . Volume 1,551K Revenue $2,618M Operating Income $704M Operating Ratio 73.1% EPS $0.37 Earnings Per Share Revenue declines 14% — Lower fuel recovery, volume and mix more than offset pricing gains $0.4
Slide 3: Financial Review: First Quarter Results
Financial Review Frank Lonegro Executive Vice President Chief Financial Officer First quarter earnings summary . . . First Quarter Results Dollars in millions, except EPS 2016 2015 Variance Revenue $ 2,618 $ 3,027 (14%) Expense 1,914 2,184 12% Operating Income $ 704 $ 843 (16%) Interest Expense (143
Slide 4: Overall outlook for second quarter is down
Overall outlook for second quarter is down Outlook Markets Drivers Automotive North American production and vehicle sales remain robust Favorable Minerals New fly ash business and modest aggregates growth Intermodal Competitive International losses offset strong Domestic growth Neutral
Slide 5: Financial wrap-up
Financial wrap-up . . . First quarter results reflect challenging freight conditions — Low commodity prices and strong U.S dollar continue to impact most markets — Strong pricing, efficiency gains, resource reductions mitigated volume decline Macro and coal headwinds expected to persist in 2016
Slide 6: Relentless pursuit of excellence
Relentless pursuit of excellence . . . 11