Early Access

10-KPeriod: FY2010

CSX CORP Annual Report, Year Ended Dec 31, 2010

Filed February 18, 2011For Securities:CSX

Summary

CSX Corporation's 2010 10-K filing indicates a strong recovery from the 2009 economic downturn, with revenue increasing by 18% to $10.6 billion, primarily driven by increased volumes and core pricing gains across all major markets, particularly automotive and metals. The company achieved record operating income of $3.1 billion and an improved operating ratio of 71.1%, reflecting disciplined cost control and productivity initiatives. CSX also demonstrated a strong commitment to shareholder returns through increased dividends and an active share repurchase program. The company continued to invest in its infrastructure, with capital expenditures rising to $1.8 billion, including significant outlays for Positive Train Control (PTC) implementation, which is estimated to cost at least $1.2 billion. Despite the positive performance, CSX faces potential risks including regulatory changes, competition, and the ongoing need for significant capital investment in infrastructure and technology. The company is actively involved in legal proceedings, notably an antitrust lawsuit regarding fuel surcharges, though management believes these matters will not have a material adverse effect on its financial condition.

Financial Statements
Beta
Revenue$10.64B
Operating Expenses$7.57B
Operating Income$3.07B
Interest Expense$557.00M
Net Income$1.56B
EPS (Basic)$0.46
EPS (Diluted)$0.45
Shares Outstanding (Basic)3.43B
Shares Outstanding (Diluted)3.46B

Key Highlights

  • 1Revenue increased 18% to $10.6 billion in 2010, driven by volume growth and pricing gains, particularly in automotive and metals.
  • 2Operating income reached a record $3.1 billion, with an improved operating ratio of 71.1%.
  • 3Capital expenditures increased to $1.8 billion, with significant investment planned for Positive Train Control (PTC) implementation, estimated at over $1.2 billion.
  • 4The company returned capital to shareholders through dividends, increasing the quarterly dividend and completing a significant portion of its share repurchase program.
  • 5Safety performance improved, with a 17% decrease in the FRA personal injury rate to 1.01 and a 9% improvement in the FRA train accident frequency rate.
  • 6Key service metrics like on-time train originations and arrivals slightly declined due to increased volume, but remained within historical ranges.
  • 7CSX is a major transportation supplier with approximately 21,000 route miles east of the Mississippi River, serving 23 states and two Canadian provinces.

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