10-QPeriod: Q1 FY2019

CSX CORP Quarterly Report for Q1 Ended Mar 31, 2019

Filed April 17, 2019For Securities:CSX

Summary

CSX Corporation reported a strong first quarter for 2019, demonstrating significant year-over-year improvements in key financial metrics. Revenue increased by 5% to $3.0 billion, driven by price increases, a favorable mix of business, and higher incidental charges. Notably, expenses decreased by 2% to $1.8 billion, largely due to labor efficiencies and lower fuel costs. This combination of revenue growth and cost control resulted in a substantial 17% increase in operating income to $1.2 billion and an improved operating ratio of 59.5%. Earnings per diluted share saw a healthy 31% increase, reaching $1.02. The company also continued its commitment to shareholder returns, repurchasing approximately $796 million in shares during the quarter and increasing its quarterly dividend. CSX's operational performance also showed positive trends with record train velocity and improved car dwell times, alongside enhanced safety metrics.

Financial Highlights

46 data points
Beta

Revenue

$3.01B

Net Income

$834.00M

27.7% Net Margin

EPS (Diluted)

$0.34

Total Assets

$38.15B

Cash & Equivalents

$1.19B

Free Cash Flow

$820.00M

Financial Statements
Beta
Revenue$3.01B
Operating Expenses$1.79B
Operating Income$1.22B
Net Income$834.00M
EPS (Basic)$0.34
EPS (Diluted)$0.34
Shares Outstanding (Basic)2.44B
Shares Outstanding (Diluted)2.45B

Key Highlights

  • 1Revenue increased 5% year-over-year to $3.013 billion, driven by price and mix.
  • 2Total expenses decreased 2% year-over-year to $1.794 billion, primarily due to labor efficiencies and lower fuel costs.
  • 3Operating income surged 17% to $1.219 billion, with an improved operating ratio of 59.5% (down 420 basis points).
  • 4Diluted earnings per share (EPS) rose 31% to $1.02.
  • 5CSX repurchased $796 million of its common stock during the quarter.
  • 6The company announced a 9% increase in its quarterly dividend.
  • 7Operational performance showed significant improvements with record train velocity and reduced car dwell.

Frequently Asked Questions

Revenue increased by 5% to $3.013 billion, primarily driven by price increases across various segments, a favorable mix of freight, higher other revenue which included a contract settlement, and increased fuel recovery.

CSX achieved a 2% decrease in expenses to $1.794 billion through several key initiatives. These included labor efficiencies stemming from lower headcount and crew starts, a reduction in fuel costs due to price decreases and efficiency gains, and savings from intermodal lane rationalizations. These were partially offset by inflation and other minor cost increases.

The operating ratio, which measures operating expenses as a percentage of operating revenue, improved by 420 basis points to 59.5%. This significant improvement indicates greater efficiency in operations, as the company spent less to generate each dollar of revenue, directly contributing to the higher operating income and profitability.

CSX is returning value to shareholders through both share repurchases and dividends. In the first quarter of 2019, the company repurchased approximately $796 million of its common stock and announced a 9% increase in its quarterly dividend, demonstrating a commitment to enhancing shareholder returns.