Summary
CSX Corporation reported its financial results for the second quarter ended June 25, 2009, reflecting the significant impact of the ongoing global recession. Revenue for the quarter declined by 25% to $2.2 billion, primarily driven by a 21% decrease in volume and lower fuel surcharge revenue due to declining fuel prices. Despite the revenue drop, CSX managed to reduce expenses by 27% to $1.6 billion, largely due to productivity initiatives, cost-cutting measures, and a favorable casualty reserve adjustment. Operating income saw a decrease of 19% to $582 million. The company also realized a $25 million after-tax gain from the sale of The Greenbrier resort, which was categorized as discontinued operations. CSX highlighted improvements in safety metrics and service performance during the quarter, including a reduction in FRA personal injuries and train accidents. The company ended the quarter with a strong liquidity position, holding $1.2 billion in cash, cash equivalents, and short-term investments, with an undrawn $1.25 billion credit facility available.
Financial Highlights
44 data points| Revenue | $2.19B |
| Operating Expenses | $1.61B |
| Operating Income | $577.00M |
| Interest Expense | $139.00M |
| Net Income | $305.00M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 3.53B |
| Shares Outstanding (Diluted) | 3.56B |
Key Highlights
- 1Revenue decreased by 25% to $2.2 billion in Q2 2009 compared to Q2 2008, driven by a 21% volume decline and lower fuel surcharge revenue.
- 2Expenses were reduced by 27% to $1.6 billion, attributed to cost-cutting, productivity initiatives, and a favorable casualty reserve adjustment.
- 3Operating income fell by 19% to $582 million.
- 4CSX recognized a $25 million after-tax gain from the sale of The Greenbrier resort.
- 5Safety performance improved with a 6% decrease in the FRA Personal Injuries Frequency Index and a 16% decline in FRA Train Accident Rate.
- 6Key service metrics like On-Time Train Originations and Arrivals showed significant improvement.
- 7The company maintained a strong liquidity position with $1.2 billion in cash, cash equivalents, and short-term investments, and an undrawn $1.25 billion credit facility.