Summary
CSX Corporation reported a notable decline in revenue and earnings for the first quarter of 2009 compared to the prior year, primarily driven by the intensifying global recession which led to a significant drop in rail volume across most sectors. Revenue fell by 17% to $2.2 billion, and net earnings decreased by 30% to $246 million ($0.63 per diluted share). Despite the revenue drop, the company managed to control expenses, with total expenses also declining by 17%, largely due to lower fuel costs and effective cost-management initiatives, including labor productivity measures. The company's liquidity position remains strong, with over $1.1 billion in cash, cash equivalents, and short-term investments, complemented by an undrawn $1.25 billion revolving credit facility. CSX is planning significant capital expenditures of $1.6 billion for 2009, demonstrating a commitment to strategic investments despite the challenging economic climate. However, investors should note the potential impact of ongoing litigation, particularly the fuel surcharge antitrust case, where the company is unable to assess the financial impact of a material adverse outcome.
Financial Highlights
41 data points| Revenue | $2.25B |
| Operating Expenses | $1.73B |
| Operating Income | $520.00M |
| Interest Expense | -$141.00M |
| Net Income | $245.00M |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 3.52M |
| Shares Outstanding (Diluted) | 3.55M |
Key Highlights
- 1Revenue declined 17% to $2.2 billion in Q1 2009 compared to Q1 2008, due to a 17% decrease in volume driven by the recession.
- 2Net earnings decreased by 30% to $246 million ($0.63 per diluted share) from $351 million ($0.85 per diluted share) in the prior year's quarter.
- 3Total operating expenses were reduced by 17% to $1.7 billion, primarily due to a significant decrease in fuel costs and cost-management efforts.
- 4The company maintained revenue per unit, as yield management initiatives offset lower fuel recovery.
- 5CSX ended the quarter with a robust liquidity position, including $1.1 billion in cash, cash equivalents, and short-term investments, and an undrawn $1.25 billion credit facility.
- 6Capital expenditures are planned at $1.6 billion for 2009, indicating continued investment despite economic headwinds.
- 7The company is a defendant in a significant fuel surcharge antitrust litigation, the outcome of which is uncertain and could have a material adverse impact.