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 Fourth quarter performance . . . Volume 1,731K Revenue $3,037M Operating Income $1,004M Operating Ratio 67.0% EPS $0.49 Earnings Per Share Revenue increases 9% — Higher volume due to impact of extra week and strong pricing gains $
Slide 3: Financial Review: Fourth Quarter Results
Financial Review Frank Lonegro Executive Vice President Chief Financial Officer Fourth quarter earnings summary . . . Fourth Quarter Results Dollars in millions, except EPS 2016 2015 Variance Revenue $ 3,037 $ 2,781 9% Expense 2,033 1,990 (2%) Operating Income $ 1,004 $ 791 27% Interest Expense (156
Slide 4: Full-year EPS include certain items; first quarter outlook flat to slightly up
Full-year EPS include certain items Full-Year 2016 GAAP Versus Non-GAAP EPS Offsetting Items $1.81 ($0.08) $0.08 ($0.03) $1.78 GAAP Property Debt Repurchase 53rd Week Non-GAAP EPS Gain Expense Impact EPS 7 Overall first quarter outlook is flat to slightly up Outlook Markets Drivers Agriculture & F
Slide 5: First quarter expense expectations; targeting $2.2 billion capital investment in 2017
First quarter expense expectations . . . Average headcount expected to be down slightly sequentially Labor and Inflation estimated to be around $35 million in the first quarter Fringe Pension expense expected to decrease around $15 million per quarter Expected to be slightly up versus the pr
Slide 6: Financial wrap-up and concluding remarks
Financial wrap-up . . . Solid 2016 performance despite dynamic freight environment — Pricing, efficiency gains, resource alignment partially offset volume decline — Efficiency initiatives drive nearly $430 million of savings and 69.4% operating ratio Healthier 2017 market, although coal headwind
Slide 7: Relentless pursuit of excellence
Relentless pursuit of excellence . . . 13