01—Abstract
Summary
Summary of the 10-K filed February 14, 2024. Cited figures are marked; the original filing is the authoritative source.
CSX Corporation reported $14.7 billiona in revenue for 2023, a slight 1% decrease from the prior year, primarily driven by lower intermodal volumes and a decline in export coal pricing.
Operating income saw an 8% decrease year-over-year to $5.6 billionb, resulting in an operating ratio of 62.1%, an increase from 59.5% in 2022. Earnings per diluted share were $1.85, down 5% from the previous year, reflecting increased expenses, particularly in labor and purchased services, which outpaced revenue declines. The company emphasized improvements in operational efficiency, with key metrics like train velocity and dwell time showing significant year-over-year improvement, alongside enhanced on-time performance for both carload and intermodal shipments.
CSX continued its commitment to capital returns through share repurchases and a recently authorized 9%c increase in its quarterly dividend. The company also maintained a strong liquidity position and an investment-grade credit profile, with Moody's upgrading its rating to A3 during the year.
02—Key points
Key Highlights
- Revenue of $14.7 billion, a 1% decrease year-over-year.
- Operating income decreased 8% to $5.6 billion.
- Operating ratio increased to 62.1% from 59.5% in the prior year.
- Earnings per diluted share were $1.85, a 5% decrease.
- Significant improvements in operational metrics such as train velocity (+12%) and dwell time (-17%).
- On-time originations improved to 77% and on-time arrivals to 71%.
- Continued capital returns to shareholders via dividends and share repurchases, with a 9% dividend increase authorized.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 14, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $14.66B$14.85B | −1.3% |
| Operating Income | $5.50B$5.95B | −7.6% |
| Net Income | $3.67B$4.11B | −10.8% |
| EPS (Basic) | $1.83$1.93 | −5.2% |
| EPS (Diluted) | $1.82$1.92 | −5.2% |
| Shares Outstanding (Basic) | 2.01B2.14B | −6.0% |
| Shares Outstanding (Diluted) | 2.01B2.14B | −6.0% |
05—Questions
Frequently Asked Questions
What were CSX's main revenue drivers in 2023 and how did they perform?
CSX's revenue was primarily generated from four lines of business: merchandise ($8.7 billion, up 5% driven by automotive, minerals, and metals), intermodal ($2.1 billion, down 11% due to lower international shipments), coal ($2.5 billion, up 2% with higher export coal volume offset by lower pricing), and trucking ($882 million, down 9% due to lower fuel surcharges). Overall revenue saw a slight 1% decrease to $14.7 billion.
How did CSX manage its expenses in 2023?
Total expenses increased by 3% to $9.1 billion. Key drivers for this increase included higher labor and fringe expenses ($163 million increase, largely due to inflation and increased headcount), and higher purchased services and other expenses ($79 million increase, mainly due to inflation and increased repair/maintenance costs). Fuel expenses decreased significantly due to lower prices, partially offsetting other cost increases.
What is the company's outlook on capital expenditures and shareholder returns?
CSX plans to invest approximately $2.5 billion in capital expenditures for 2024, focusing on sustaining core infrastructure, safety, reliability, and profitable growth initiatives. The company demonstrated its commitment to shareholder returns by completing a $5 billion share repurchase program and authorizing a 9% increase in its quarterly cash dividend, reflecting confidence in its financial position and future cash generation.
06—Continue