Summary
CSX Corporation filed an 8-K on July 20, 2006, to clarify and reiterate its previously stated financial targets for the next five years, through 2010. This filing aims to correct potential misinformation in the media and ensure investors have accurate guidance. The company reaffirmed its commitment to significant growth in its Surface Transportation segment, projecting a 4-6% compounded annual revenue growth and a 10-12% compounded operating income growth. Key operational goals include achieving a mid-70s operating ratio within this timeframe. On a consolidated basis, CSX is targeting a 12-14% compounded annual growth in earnings per share (EPS) and a 10-12% compounded annual growth in free cash flow.
Key Highlights
- 1CSX Corp. reiterated its five-year financial targets (through 2010) to correct media inaccuracies.
- 2Surface Transportation segment is projected to achieve 4%-6% compounded annual revenue growth.
- 3Operating income growth for Surface Transportation is targeted at 10%-12% compounded annually.
- 4CSX aims for a mid-70s operating ratio in Surface Transportation within five years.
- 5Consolidated earnings per share (EPS) are expected to grow at a 12%-14% compounded annual rate.
- 6Consolidated free cash flow growth is targeted at 10%-12% compounded annually.
- 7The filing emphasizes that any differing information should not be relied upon.