Csx Corporation · NASDAQ:CSX
Csx — J.P. Morgan Aviation, Transportation and Industrials Conference 2016
10 slides from Csx's conference presentation, Mar 8, 2016
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: Presentation overview
Presentation overview . . . Sustained record of strong financial performance — Focus on pricing, efficiency, profitable growth through transition in energy markets Macro-economic headwinds intensified in 2015 — Low natural gas, low commodity prices, strong dollar expected to continue in 2016 F
Slide 3: Focused on driving pricing and efficiency gains
Focused on driving pricing and efficiency gains Same Store Sales On Time Productivity Pricing Originations Merchandise & Intermodal Dollars in Millions (excludes Coal pricing) 72% $184 67% 4.0% 4.0% $80 2011 2015 2011 2015 2011 2015 5 Coal headwinds intensified as natural gas declined Natural gas pr
Slide 4: Strong dollar, low commodity prices impede growth
Strong dollar, low commodity prices impede growth U.S. Dollar Index U.S. Corn Prices 2009 = 100 Dollars per Bushel 115 $4.75 110 $4.25 105 100 $3.75 95 90 $3.25 Jan-14 Jul-14 Jan-15 Jul-15 Jan-14 Jul-14 Jan-15 Jul-15 Iron & Steel Production Index WTI Crude Oil Prices January 2014 = 100 Dollars per B
Slide 5: Intermodal growth in 2015, driven by domestic
Intermodal growth in 2015, driven by domestic Domestic volume up 12% International volume down 5% Total Strong consumer economy, continued West coast port disruptions, weak peak Intermodal H2R conversions and market gains shipping season and competitive losses 15% 14% 9% 9% 5% 6% 4% 1% (1%) (5%) (7%
Slide 6: Natural gas and global prices will challenge coal
Natural gas and global prices will challenge coal Henry Hub Natural Gas Prices February Stockpiles Dollars per Million BTU CSXT Region Days of Burn $10 201 $8 107 78 134 123 72 $6 50 84 $4 $2 2013 2014 2015 2016 2013 2014 2015 2016 $0 Jan-14 Jan-15 Jan-16 North 2006 – 2010 avg. South Thermal Spot Pr
Slide 7: CSX has taken significant actions to mitigate costs
CSX has taken significant actions to mitigate costs CSX Headcount Right-sizing resources to Thousands of Employees lower demand environment 2,500 — Over 2,200 T&E furloughs 32.3 32.1 32.2 Reduction — Nearly 400 locomotives stored 31.6 Significant actions to drive 30.9 productivity savings — Coal
Slide 8: CSX continuing to streamline cost structure
CSX continuing to streamline cost structure Appalachian Coal Fields Significant actions taken in West Virginia response to coal environment — Erwin & Corbin facility closures Eastern — Huntington Division Kentucky consolidation — Streamline coal shipments from Ashtabula to Toledo docks Evaluating
Slide 9: Network leverages secular Intermodal growth
Network leverages secular Intermodal growth CSX Intermodal Terminals Domestic Volume vs. ATA Tonnage Indexed: January 2006 = 100 ATA Truck Tonnage CSX Weekly Domestic Intermodal Volume Montreal 250 225 Northwest Ohio 2 200 3 3 Chicago 2 175 Philadelphia 150 St. Louis 125 3 Portsmouth 100 Nashville C
Slide 10: Wrap-up
Wrap-up . . . Sustained record of superior shareholder value creation — Delivered EPS growth despite $1.4 billion decline in coal revenue since 2011 Macro-economic headwinds will persist throughout 2016 — Low commodity prices and strong U.S dollar impacting most markets First quarter and full
CSX — J.P. Morgan Aviation, Transportation and Industrials Conference 2016 on 6ix