CSX Announces Record Second Quarter Results

JACKSONVILLE, Fla. — CSX Corp. announced second quarter net earnings of $506 million, or $0.46 per share, versus $414 million, or $0.36 per share, in the same period last year.  This represents a 28 percent year-over-year improvement in earnings per share.

“As our markets continue to expand, CSX is delivering outstanding results for shareholders,” said Michael J. Ward, chairman, president and chief executive officer.  “At the same time, we are taking a number of actions to position the operations for greater customer demand, now and over the long-term.”

Revenue in the quarter improved 13 percent from the prior year to $3.0 billion, with increases across all major markets – merchandise, intermodal and coal.  Overall revenues were driven by volume growth, pricing that reflects the value of freight rail transportation, and recoveries that offset higher fuel prices.

The higher revenue, coupled with the company’s focus on profitable growth, drove a 21 percent increase in operating income to a record$926 million, and an operating ratio of 69.3 percent, a 190 basis point improvement year-over-year.

As previously announced, CSX expects to make 2011 capital investments of $2.2 billion.  That is consistent with its intentions to reinvest an average of 18 percent of its revenues into its business through 2015 to further enhance the capacity, quality and flexibility of its rail network.  The company remains on target to achieve its current near- and long-term financial guidance, including a high-sixties operating ratio in 2011 and a 65 percent operating ratio by no later than 2015.