Summary
CSX Corporation reported third quarter 2009 results reflecting the continued impact of the global recession, with significant year-over-year declines in revenue and operating income. Revenue fell 23% to $2.3 billion, and operating income decreased 18% to $598 million. However, the company managed expenses effectively, reducing them by 24% through productivity gains and cost management, leading to a record operating ratio of 73.9% for the quarter. This demonstrates the company's ability to adapt to challenging economic conditions by controlling costs. The nine-month period also showed similar trends, with revenue down 22% and operating income down 18%. Despite the revenue headwinds, CSX maintained a strong liquidity position, with $1.3 billion in cash, cash equivalents, and short-term investments, and an undrawn $1.25 billion credit facility. The company also entered into a new $250 million receivables securitization facility to enhance short-term liquidity. Management remains focused on cost control and believes CSX is well-positioned for recovery.
Financial Highlights
46 data points| Revenue | $2.29B |
| Operating Expenses | $1.70B |
| Operating Income | $594.00M |
| Interest Expense | $140.00M |
| Net Income | $290.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 3.53B |
| Shares Outstanding (Diluted) | 3.57B |
Key Highlights
- 1Revenue for the third quarter declined 23% to $2.3 billion, primarily due to decreased volume (down 15%) and lower fuel surcharge revenue, more than offsetting core pricing gains.
- 2Total expenses were reduced by 24% to $1.7 billion, reflecting cost management initiatives, lower fuel costs, and productivity gains.
- 3Operating income decreased by 18% to $598 million compared to the prior year's third quarter.
- 4The company achieved a record operating ratio of 73.9% for the third quarter, indicating improved operational efficiency despite revenue pressures.
- 5Net earnings for the third quarter were $293 million, or $0.74 per diluted share, down from $382 million, or $0.94 per diluted share, in the prior year.
- 6CSX maintained a strong liquidity position with $1.3 billion in cash, cash equivalents, and short-term investments, and an undrawn $1.25 billion revolving credit facility.
- 7Capital expenditures for the nine months ended September 24, 2009, were $1.0 billion, with a full-year plan of $1.6 billion.