Early Access

10-QPeriod: Q2 FY2019

CSX CORP Quarterly Report for Q2 Ended Jun 30, 2019

Filed July 17, 2019For Securities:CSX

Summary

CSX Corporation reported its second-quarter and year-to-date results for 2019, demonstrating resilience and operational improvements. For the second quarter, revenue saw a slight decrease of 1% to $3.06 billion, while operating income increased by 2% to $1.3 billion, driven by a 3% reduction in total expenses. This efficiency translated into a 2% year-over-year increase in earnings per diluted share, reaching $1.08. For the first six months of the year, revenue grew 2% to $6.07 billion and operating income saw a significant 8% increase to $2.52 billion, leading to a 17% rise in earnings per diluted share to $2.10. The company's operational performance metrics showed strong improvement, with record levels achieved in train velocity and a significant reduction in dwell time. Safety also remained a key focus, with substantial year-over-year improvements in both the FRA personal injury frequency index and the FRA train accident rate. CSX continues to prioritize capital allocation towards infrastructure, service enhancements, and productivity initiatives, while also returning capital to shareholders through share repurchases and dividends. The company maintained a strong liquidity position with ample cash and credit facilities available.

Financial Statements
Beta
Revenue$3.06B
Operating Expenses$1.76B
Operating Income$1.30B
Net Income$870.00M
EPS (Basic)$0.36
EPS (Diluted)$0.36
Shares Outstanding (Basic)2.42B
Shares Outstanding (Diluted)2.42B

Key Highlights

  • 1Revenue for the second quarter slightly decreased by 1% to $3.06 billion, while the six-month revenue increased by 2% to $6.07 billion.
  • 2Operating income for the second quarter increased by 2% to $1.3 billion, and for the six-month period, it increased by 8% to $2.52 billion, reflecting strong cost management and operational efficiencies.
  • 3Earnings per diluted share (EPS) for the second quarter rose by 7% to $1.08, and for the first six months, EPS increased by 17% to $2.10.
  • 4The company achieved record train velocity and reduced terminal dwell time, indicating improved operational efficiency.
  • 5Safety performance saw significant improvements, with a 22% decrease in the FRA personal injury frequency index and a 54% decrease in the FRA train accident rate for the second quarter.
  • 6CSX repurchased approximately $1.7 billion of its stock in the first six months of 2019, underscoring a commitment to returning capital to shareholders.
  • 7The company maintained a strong liquidity position with $1.7 billion in cash, cash equivalents, and short-term investments at the end of the second quarter.

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