Early Access

10-QPeriod: Q2 FY2013

CSX CORP Quarterly Report for Q2 Ended Jun 28, 2013

Filed July 17, 2013For Securities:CSX

Summary

CSX Corporation reported a modest increase in revenue and operating income for the second quarter and first six months of 2013 compared to the prior year. Revenue grew by 2% in the second quarter and 1% for the six-month period, largely driven by a combination of increased shipment volumes and higher revenue per unit due to pricing gains across various markets. Expenses also saw a 2% increase in the second quarter, primarily attributed to inflationary pressures and higher incentive compensation, though these were partially offset by cost-saving efficiencies and reduced fuel expenses. Net earnings also showed an upward trend, with a 5% increase in the second quarter and a 3% increase for the first six months. Diluted earnings per share followed suit, rising to $0.52 in Q2 2013 from $0.49 in Q2 2012, and $0.97 for the six months compared to $0.92 in the prior year. The company maintained a strong focus on operational efficiency, evidenced by a record operating ratio of 68.6% in the second quarter, a slight improvement from the previous year. CSX continues to invest in its infrastructure, with planned capital expenditures of $2.3 billion for 2013, including significant investment in Positive Train Control (PTC) technology.

Financial Statements
Beta
Revenue$3.05B
Operating Expenses$2.11B
Operating Income$940.00M
Interest Expense$140.00M
Net Income$521.00M
EPS (Basic)$0.17
EPS (Diluted)$0.17
Shares Outstanding (Basic)3.07B
Shares Outstanding (Diluted)3.07B

Key Highlights

  • 1CSX reported record quarterly revenue of $3.1 billion, a 2% increase year-over-year, driven by volume growth and higher revenue per unit.
  • 2Operating income also reached a record $963 million in the second quarter, up 2% from the prior year.
  • 3Diluted earnings per share increased to $0.52 in the second quarter of 2013, up from $0.49 in the same period of 2012.
  • 4The company achieved a record operating ratio of 68.6% in the second quarter of 2013, indicating improved operational efficiency.
  • 5Total expenses increased by 2% in the second quarter, primarily due to inflation and higher incentive compensation, but were partially offset by efficiency gains and lower fuel costs.
  • 6CSX plans capital investments of $2.3 billion for 2013, including approximately $325 million for Positive Train Control (PTC) implementation.
  • 7Cash generated from operations remains the primary funding source for capital expenditures, with substantial liquidity available through cash balances and a revolving credit facility.

Frequently Asked Questions