8-KRegulation FD

CSX CORP 8-K Report, Regulation FD Disclosure (Jul 20, 2006)

Filed July 20, 2006For Securities:CSX

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.

Frequently Asked Questions

CSX filed this 8-K to officially correct and reaffirm its previously communicated financial targets for the next five years, aiming to counter any differing or inaccurate information that may have appeared in the media.

For its Surface Transportation segment, CSX targets 4% to 6% compounded annual revenue growth and 10% to 12% compounded operating income growth over the next five years. They also aim for a mid-70s operating ratio within that period.

On a consolidated basis, CSX Corporation is targeting 12% to 14% compounded annual growth in earnings per share (EPS) and 10% to 12% compounded annual growth in free cash flow over the next five years.

The company explicitly states that any information regarding these targets that differs from what is reiterated in this filing does not reflect the company's views and should not be relied upon by investors.