What was the primary driver for the revenue increase in Q3 2017?

The revenue increase of 1% to $2.74 billion was primarily driven by gains in the coal and intermodal segments, which partially offset declines in most merchandise markets.

What is the 'Precision Scheduled Railroading' strategy, and how is it impacting the company?

Precision Scheduled Railroading (PSR) is an operational strategy focused on improving customer service, controlling costs, optimizing asset utilization, operating safely, and developing employees. The company is actively implementing this plan, which is influencing operational adjustments and customer interactions.

What was the reason for the significant restructuring charges, and what are the expected benefits?

The restructuring charges of $296 million year-to-date were primarily related to a management workforce reduction program designed to streamline operations and speed decision-making. The company expects approximately $200 million in annual pre-tax savings from this program.

How did CSX manage its cash and shareholder returns during the quarter?

CSX generated $2.86 billion in cash from operating activities in the first nine months of 2017. The company also repurchased approximately $1 billion of its stock in Q3 2017, demonstrating a continued focus on shareholder returns, funded by operational cash flow and debt.

CSX 10-Q Quarterly Report Q3 FY2017 — Revenue, Net Income, EPS

Summary

CSX Corporation reported a slight increase in revenue for the third quarter of 2017, reaching $2.74 billion, up from $2.71 billion in the same period of the previous year. This modest growth was primarily driven by stronger performance in the coal and intermodal segments, though offset by declines in most merchandise markets. Despite a slight revenue increase, the company managed expenses effectively, resulting in a modest increase in operating income to $876 million from $841 million. The operating ratio improved to 68.1% from 69.0%, indicating improved efficiency. Net earnings for the quarter were $459 million, a slight increase from $455 million in Q3 2016, leading to an earnings per share of $0.51, up from $0.48. The company continued to implement its 'Precision Scheduled Railroading' strategy, which aims to enhance customer service, control costs, and optimize asset utilization. Significant restructuring charges of $296 million year-to-date were incurred, primarily related to a management workforce reduction program, with expected annual savings of approximately $200 million. Shareholder returns remain a focus, with substantial share repurchases executed during the period.

Financial Highlights

47 data points

Beta

Revenue

$2.74B

Net Income

$459.00M

0.2% Net Margin

EPS (Diluted)

$0.17

Total Assets

$35.57B

Cash & Equivalents

$591.00M

Free Cash Flow

$788.00M

Financial Statements

Beta

Revenue	$2.74B
Operating Expenses	$1.88B
Operating Income	$868.00M
Interest Expense	$132.00M
Net Income	$459.00M
EPS (Basic)	$0.17
EPS (Diluted)	$0.17
Shares Outstanding (Basic)	2.71B
Shares Outstanding (Diluted)	2.72B

Key Highlights

1Revenue increased by 1% to $2.74 billion in Q3 2017 compared to Q3 2016.
2Operating income grew by 4% to $876 million, with an improved operating ratio of 68.1%.
3Net earnings rose slightly to $459 million, resulting in a 6% increase in Diluted Earnings Per Share to $0.51.
4Significant restructuring charges totaling $296 million year-to-date were incurred due to a management workforce reduction program, with projected annual savings of $200 million.
5The company continued the implementation of its 'Precision Scheduled Railroading' operational strategy.
6CSX repurchased approximately $1 billion of its common stock in Q3 2017.
7Long-term debt increased by $514 million due to a new note issuance of $850 million, offset by repayments.

CSX CORP Quarterly Report for Q3 Ended Sep 30, 2017

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions