CSX Corp. announced first-quarter net earnings of $459 million, or $0.45 per
share, versus $449 million, or $0.43 per share, in the same period last year.
"CSX continues to create value by supporting its customers with high levels of
service in an economy that is still gradually recovering," said Michael J. Ward,
chairman, president and chief executive officer. "At the same time, we are
prepared for the economy to accelerate and have great confidence in the
long-term outlook for the business."
In a release dated April 16, the company noted that revenue in the quarter was
nearly $3.0 billion, essentially flat from the year before, as gains in
merchandise, intermodal and other revenue offset declines in the company's coal
business.
These revenues, combined with strength in operations, drove first- quarter
operating income of $875 million, and an operating ratio of 70.4 percent.
In addition to its quarterly results, CSX announced that its Board of Directors
has approved a 7 percent increase in the quarterly dividend on the company's
common stock, and a new $1.0 billion share buyback program.
"These actions reflect the strength of CSX's core earning power and its
confidence in the future," said Ward. "They build upon the $2.3 billion of
investment CSX is making this year to meet the nation's future transportation
needs and drive long-term shareholder value."
Since 2005, CSX has invested $14.2 billion in its business, increased its
quarterly cash dividend 11 times representing a 29 percent compounded annual
growth rate (including the dividend increase announced), and repurchased $8.0
billion worth of shares. These actions reflect the company's ongoing commitment
to deploy cash in a balanced framework to drive near- and long-term value.
The new quarterly dividend of $0.15 is payable on June 14, to shareholders of
record at the close of business on May 31. The new share buyback program is
authorized to begin immediately, and it is expected to be completed over the
next 24 months. Under the buyback program, the company may purchase shares from
time to time on the open market, through block trading or otherwise. The company
expects to fund the repurchase program primarily through excess cash and free
cash flow as the company continues to target an improving credit profile.
Consistent with its current view of the economy, the changing coal market, and
its ability to withstand a range of business conditions, CSX said that it now
expects to achieve an operating ratio in the high 60s by 2015, while remaining
focused on attaining a mid-60s operating ratio longer-term. At the same time,
the company expects to produce average annual earnings-per-share growth of 10-
15 percent through 2015 off of the 2013 base, which is expected to be flat to
down from prior-year levels.
CSX, based in Jacksonville, Fla., is a transportation company.
