What was the primary driver for the increase in revenue?

The primary driver for the revenue increase of 11% to $2.5 billion was a combination of a 5% increase in freight volume across various markets and an increase in core pricing, supplemented by higher fuel recovery due to rising fuel prices.

How did CSX manage its expenses in the first quarter of 2010?

While total expenses increased by 8% to $1.9 billion, this was primarily driven by higher fuel costs and increased labor-related expenses (including incentive compensation and inflation). However, the company was able to offset some of these increases through lower staffing levels and benefits from safety improvements that reduced materials, supplies, and other expenses. The improved operating ratio suggests effective cost management in relation to revenue growth.

What are CSX's future capital expenditure plans and key investments?

CSX plans to invest $1.7 billion in capital expenditures for 2010. A significant portion of this will go towards implementing the Positive Train Control (PTC) system, estimated at $170 million for the year, and advancing the National Gateway infrastructure initiative. These investments are aimed at enhancing safety, improving service, and increasing operational efficiency.

What is the outlook for CSX's earnings growth in 2010?

CSX is optimistic about its financial performance for the full year 2010, projecting strong double-digit earnings per share growth. This outlook is supported by anticipated volume and revenue growth, particularly in export coal shipments, and expected improvements in the operating ratio.

CSX 10-Q Quarterly Report Q1 FY2010 — Revenue, Net Income, EPS

Summary

CSX Corporation reported a solid first quarter for 2010, demonstrating a strong rebound from the previous year. Revenue increased by 11% to $2.5 billion, driven by a 5% rise in volume and effective pricing strategies, including higher fuel recovery. Despite a 8% increase in expenses, largely due to higher fuel and labor costs, operating income saw a significant 21% boost to $634 million, resulting in an improved operating ratio of 74.5%, a record for the first quarter. Net earnings also rose to $306 million, or $0.78 per diluted share, reflecting the company's ability to capitalize on economic recovery and manage costs effectively. The company highlighted significant investments in network enhancements, including Positive Train Control (PTC) and the National Gateway infrastructure project, demonstrating a commitment to long-term efficiency and safety. CSX also continued its focus on shareholder returns, increasing its quarterly dividend and executing substantial share repurchases. The company expressed confidence in continued strong performance, projecting double-digit earnings per share growth for the full year 2010, supported by expected volume and revenue growth.

Financial Highlights

46 data points

Beta

Revenue

$2.49B

Net Income

$305.00M

0.1% Net Margin

EPS (Diluted)

$0.09

Total Assets

$27.19B

Cash & Equivalents

$993.00M

Free Cash Flow

$416.00M

Financial Statements

Beta

Revenue	$2.49B
Operating Expenses	$1.86B
Operating Income	$632.00M
Interest Expense	$142.00M
Net Income	$305.00M
EPS (Basic)	$0.09
EPS (Diluted)	$0.09
Shares Outstanding (Basic)	3.52B
Shares Outstanding (Diluted)	3.55B

Key Highlights

1Revenue increased by 11% to $2.5 billion in Q1 2010 compared to Q1 2009, driven by a 5% increase in volume and pricing gains.
2Operating income rose 21% to $634 million, with the operating ratio improving to a record 74.5% for the first quarter.
3Net earnings increased to $306 million ($0.78 per diluted share) from $246 million ($0.62 per diluted share) in the prior year's quarter.
4The company plans capital expenditures of $1.7 billion for 2010, including $170 million for Positive Train Control (PTC) implementation.
5CSX announced a 9% increase in its quarterly cash dividend to $0.24 per share in February 2010.
6The company repurchased $229 million of its common stock in the first quarter of 2010.
7Employee safety showed improvement with a record low personal injury frequency index of 0.81.

CSX CORP Quarterly Report for Q1 Ended Mar 26, 2010

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions