JACKSONVILLE, Fla., Oct. 14 /PRNewswire-FirstCall/ -- CSX Corporation
(NYSE: CSX) today reported third quarter 2008 earnings from continuing
operations of $382 million, or 94 cents per share. This represents a 40
percent increase from the same period last year. In 2007, CSX reported third
quarter earnings of $297 million from continuing operations, or 67 cents per
share.
"CSX delivered impressive financial results in a challenging economy,"
said Michael J. Ward, chairman, president and CEO. "Our resilient business
portfolio and disciplined operations continue to generate substantial earnings
growth for shareholders."
Revenue increased 18 percent to nearly $3 billion, with nine of the
company's 10 market segments producing revenue gains despite ongoing softness
in the housing and automotive sectors of the economy. Those gains were led by
shipments of export coal, grain, ethanol and metals, as well as strong yields
and fuel recovery in all markets.
Revenue growth and moderating fuel costs, combined with the company's
continued focus on productivity and cost control, increased operating income
by 31 percent to $733 million, despite the impact of recent storms. In
addition, the operating ratio improved 250 basis points to 75.2 percent, which
represents a third quarter record.
Building on these results and taking into account current economic
conditions, CSX is now targeting the low end of its earnings guidance of $3.65
to $3.75 per share. Through 2010, the company continues to target compound
annual growth in operating income and EPS of 15 to 20 percent and 20 to 25
percent, respectively, as well as a high-60's operating ratio by 2010. The
company also said it has strong liquidity, access to credit and expects free
cash flow of approximately $1 billion in 2008.
"CSX has momentum in our business and confidence in our ability to produce
good results, even in periods of economic uncertainty," said Ward. "In today's
environment, manufacturers and distributors are highly focused on gaining
greater efficiency in their supply chains and railroads offer them the best
transportation alternative. Combine that with our strong performance in
safety, service and productivity, and CSX is well positioned to deliver
shareholder value in the near- and long-term."
CSX Corporation, based in Jacksonville, Fla., is a leading transportation
company providing rail, intermodal and rail-to-truck transload services. The
company's transportation network spans approximately 21,000 miles with service
to 23 eastern states and the District of Columbia, and connects to more than
70 ocean, river and lake ports.
This earnings announcement, as well as a package of detailed financial
information, is contained in the CSX Quarterly Financial Report available on
the company's website at http://investors.csx.com in the Investors section and
on Form 8-K with the Securities and Exchange Commission ("SEC").
CSX executives will conduct a quarterly earnings conference call with the
investment community on Oct. 15, 2008 at 8:30 a.m. ET. Investors, media and
the public may listen to the conference call by dialing 888-327-6279
(888-EARN-CSX) and asking for the CSX earnings call. (Callers outside the
U.S., dial 773-756-0199). Participants should dial in 10 minutes prior to the
call. In conjunction with the call, a live webcast will be accessible and
presentation materials will be posted on the company's website at
http://investors.csx.com. Following the earnings call, an internet replay of
the presentation will be archived on the company website.
Forward-looking statements
This information and other statements by the company contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act with respect to, among other items: projections and
estimates of earnings, revenues, cost-savings, expenses, or other financial
items; statements of management's plans, strategies and objectives for future
operation, and management's expectations as to future performance and
operations and the time by which objectives will be achieved; statements
concerning proposed new products and services; and statements regarding future
economic, industry or market conditions or performance. Forward-looking
statements are typically identified by words or phrases such as "believe,"
"expect," "anticipate," "project," "estimate" and similar expressions.
Forward-looking statements speak only as of the date they are made, and the
company undertakes no obligation to update or revise any forward-looking
statement. If the company does update any forward-looking statement, no
inference should be drawn that the company will make additional updates with
respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, and actual performance or results could differ materially from
that anticipated by these forward-looking statements. Factors that may cause
actual results to differ materially from those contemplated by these
forward-looking statements include, among others; (i) the company's success in
implementing its financial and operational initiatives; (ii) changes in
domestic or international economic or business conditions, including those
affecting the rail industry (such as the impact of industry competition,
conditions, performance and consolidation); (iii) legislative or regulatory
changes; (iv) the inherent business risks associated with safety and security;
and (v) the outcome of claims and litigation involving or affecting the
company.
Other important assumptions and factors that could cause actual results to
differ materially from those in the forward-looking statements are specified
in the company's SEC reports, accessible on the SEC's website at www.sec.gov
and the company's website at www.csx.com.
SOURCE CSX Corporation
