Financial Performance - Revenue decreased by $116 million, or 3%, year over year, totaling $3.699 billion in Q2 2023[100] - Operating income of $1.5 billion decreased by $221 million, or 13%, year over year[100] - Earnings per diluted share decreased by $0.05, or 9%, to $0.49[100] - Total expenses increased by $105 million, or 5%, year over year, reaching $2.217 billion[113] - Other revenue decreased by $55 million, mainly from lower intermodal storage and equipment usage[111] - Income tax expense decreased by $64 million due to lower earnings before income taxes[117] - Free cash flow before dividends decreased to $1,503 million in the first half of 2023, down from $1,748 million in 2022, primarily due to higher property additions and less cash from operating activities[123] Operational Metrics - Intermodal volume decreased by 10% due to reduced international shipments and a softening truck market[108] - Coal volume increased due to higher shipments of metallurgical and thermal coal, while domestic coal shipments decreased[110] - Merchandise volume increased in categories such as Automotive (21% increase) and Minerals (6% increase) but decreased in Chemicals (4% decrease) and Forest Products (3% decrease)[104] - Train velocity increased by 16% to 17.7 miles per hour in Q2 2023 compared to 15.3 miles per hour in Q2 2022[128] - Dwell time improved by 21% to 9.3 hours in Q2 2023 from 11.8 hours in Q2 2022[128] - Carload trip plan performance rose to 84% in Q2 2023, up from 59% in Q2 2022[128] - Intermodal trip plan performance increased to 96% in Q2 2023, compared to 90% in Q2 2022[128] - Total revenue ton-miles increased to 48.5 billion in Q2 2023, up from 48.2 billion in Q2 2022, reflecting a 1% improvement[128] - Total gross ton-miles reached 95.7 billion in Q2 2023, compared to 95.0 billion in Q2 2022, also a 1% increase[128] Financial Costs - Interest expense increased by $30 million primarily due to higher average debt balances and interest rates[115] Safety Metrics - The FRA train accident rate decreased by 16% to 3.25 in Q2 2023 from 3.87 in Q2 2022[128] - The personal injury frequency index improved by 24% to 0.81 in Q2 2023, down from 1.07 in Q2 2022[128] Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2023, was $2,483 million, which includes $238 million in payments related to finalized labor agreements[124]

CSX Corporation (NASDAQ:CSX) UBS Global Industrials and Transportation Conference June 6, 2023 8:50 AM ET Company Participants Kevin Boone - Executive Vice President of Sales and Marketing Conference Call Participants Tom Wadewitz - UBS Tom Wadewitz All right. Good morning, everyone. My name is Tom Wadewitz. I cover the freight transports for UBS. It's a pleasure for me to welcome you to the conference. And also to have CSX with us today, we have Kevin Boone, who's head of marketing for CSX and looking forw ...

Summary of CSX Corporation's Conference Call Company Overview - **Company**: CSX Corporation (NASDAQ:CSX) - **Event**: Bernstein's 39th Annual Strategic Decisions Conference 2023 - **Date**: June 1, 2023 - **Participants**: Joe Hinrichs (CEO), Matt Korn (Investor Relations), David Vernon (Bernstein) Key Points State of the Business - CSX has successfully improved service levels, now exceeding pre-pandemic metrics from late 2019 and 2020, focusing on employee engagement and customer service [3][4] - The company aims to address industry challenges, including safety discussions in Congress and media scrutiny following incidents like the Norfolk Southern derailment [6] Priorities and Strategy - The CEO emphasized three main priorities: employee satisfaction, service levels, and customer satisfaction, which were aligned with the Board's expectations [7][10] - CSX is working to improve relationships with various stakeholders, including labor unions and customers, to enhance overall service and operational efficiency [10][11] Employee Engagement - The company has initiated efforts to improve employee morale, which has historically been low in the rail industry, by enhancing benefits and addressing work-life balance [13][18] - A recent employee survey indicated a 30% response rate from union employees, with significant feedback collected to address concerns [17] Service Recovery and Operational Efficiency - CSX has seen a reduction in attrition rates among new hires, attributed to improved workplace culture and morale [20][21] - The company is focused on maintaining high service levels, which are critical for customer retention and attracting new business [25][30] Volume and Revenue Outlook - CSX anticipates growing revenue per unit (RPU) this year, with merchandise volume up 3% to 4% year-to-date, driven by sectors like autos, coal, and grain [31][32] - Intermodal volumes remain depressed, but there are signs of sequential improvement, particularly in domestic intermodal [32][33] Market Position and Competition - CSX is gaining market share, particularly as competitors face operational challenges, and is actively engaging with customers to expand business opportunities [36][37] - The company is committed to improving service levels to foster long-term relationships with customers and explore new business avenues [41][44] Capital Investment and Growth Strategy - CSX plans to invest in capital projects to support growth, including enhancing terminal throughput and expanding its fleet [55][56] - The company does not foresee significant increased capital needs but will invest as necessary to support customer growth [56] Regulatory Environment - The CEO acknowledged the challenges posed by a more vocal regulatory environment, particularly concerning safety and access proposals following recent incidents [78] Conclusion - CSX is focused on enhancing service levels, improving employee satisfaction, and strategically growing its business while navigating regulatory challenges and market dynamics. The company aims to leverage its operational strengths to achieve sustainable growth and maintain competitive advantages in the rail industry.

Summary of CSX Corp Conference Call Company Overview - **Company**: CSX Corp (NASDAQ:CSX) - **Event**: Wolfe Research 16th Annual Global Transportation & Industrials Conference - **Date**: May 24, 2023 - **Participants**: Joseph Hinrichs (President, CEO & Director), Scott Group (Wolfe Research) Key Points Industry and Market Conditions - **Railroad Industry Attention**: The railroad industry has gained significant attention recently, contrasting with its previous lower profile compared to the auto industry [3] - **Service Metrics**: CSX reported its best-ever service metrics in Q1 2023, continuing into Q2, with third-party endorsements confirming improved service levels [3][4] - **Intermodal Business**: The intermodal business has seen a decline of double digits year-to-date, particularly in international intermodal shipments, although there are expectations for improvement in the second half of the year [4][5] - **Merchandise Business**: The merchandise segment is performing well, with a 4% increase year-over-year, driven by coal, automotive, metals, and aggregates [10][11] Financial Performance - **Volume Trends**: Overall volumes are down 2-3% at the start of Q2, with intermodal softer than expected but merchandise stronger [9][10] - **Pricing Environment**: The pricing environment remains positive, with expectations for continued strength due to improved service levels and successful contract negotiations [18][19] - **Revenue per Unit Growth**: Positive revenue per unit growth is primarily attributed to the merchandise side, despite some softness in chemicals [16][19] Operational Insights - **Service Consistency**: The focus is on maintaining service consistency and predictability, which is crucial for customer confidence [33] - **Headcount Management**: CSX is hiring to reach a target of 7,400 employees, with a focus on maintaining network fluidity [31][34] - **Volume Recovery Strategy**: CSX aims for a gradual volume recovery to avoid operational disruptions, emphasizing the importance of maintaining service levels during volume increases [41][43] Future Outlook - **Growth Opportunities**: CSX sees potential for growth through industrial development, particularly in the Southeast, and the acquisition of Pan Am, which is expected to enhance service capabilities [52][54] - **Margin Improvement**: There is no fundamental reason to expect margins to decline with growth; incremental margins are expected to remain strong [56] - **Capital Expenditure**: CSX does not foresee significant increases in capital expenditures relative to revenue, focusing on quality investments [60] Regulatory Environment - **Safety Legislation**: CSX is actively engaged in discussions regarding safety legislation, expressing concerns over certain provisions while supporting others that enhance safety [63][66] Employee Relations - **Workforce Engagement**: CSX is focused on improving employee relations and retention, recognizing the importance of a motivated workforce in delivering service excellence [48][50] Additional Insights - **Service Improvement**: The operational discipline and focus on service metrics are seen as key to maintaining service levels even with increased volumes [37][39] - **Market Positioning**: CSX is leveraging its improved service levels to build trust with customers and explore growth opportunities [54] This summary encapsulates the key insights and discussions from the CSX Corp conference call, highlighting the company's current performance, market conditions, and strategic outlook.

Summary of CSX Corporation Conference Call Company Overview - **Company**: CSX Corporation (NASDAQ:CSX) - **Event**: Bank of America Transportation, Airlines and Industrials Conference Call - **Date**: May 18, 2023 - **Participants**: Kevin Boone (EVP, Sales & Marketing), Ken Hoexter (Bank of America) Key Industry Insights - **Market Conditions**: The company is experiencing a challenging market backdrop, with indications of a recession already being felt in demand levels [4][5] - **Service Levels**: CSX has made significant progress in service levels, receiving positive feedback from customers, which has translated into strong merchandise growth [4][5] - **Intermodal Performance**: Intermodal services are currently weak, particularly in consumer-facing segments, but there are signs of stability and potential improvement in the second half of the year [5][24] - **Chemical Sector**: There is a noted weakness in the chemical sector due to destocking, with declines more acute than underlying demand [6][8] - **Industrial Activity**: There is unprecedented activity in the industrial sector, with expectations for growth to materialize in late 2024 and 2025 [8][9] Financial Performance - **CapEx Plans**: CSX has a target of $2.3 billion for capital expenditures, which is lower than some peers. The company believes it has sufficient capacity for growth without significant new investments [13][15] - **Operating Ratios**: The company expects to see improvements in operating ratios in the second quarter, driven by seasonal factors and pricing momentum in merchandise [35][36] - **Volume Outlook**: Merchandise performance has been strong, contributing nearly two-thirds of revenue, while intermodal volumes have been weaker than anticipated [25][26] Strategic Focus - **Customer Engagement**: There is a strong focus on improving customer service and engagement, particularly with small and medium-sized customers [7][12] - **Safety Initiatives**: CSX is investing in safety measures, including increasing the number of HotBox detectors and utilizing technology for proactive inspections [46][47] - **Market Share Expansion**: The company is actively working to capture truck share by enhancing service offerings and engaging with customers more effectively [23][64] Challenges and Risks - **Economic Uncertainty**: The company acknowledges the potential for economic downturns to impact demand and service levels [4][24] - **Labor Costs**: Upcoming labor cost increases due to union negotiations may pose challenges, but the company is optimistic about offsetting these through pricing and operational efficiencies [36] Additional Insights - **Coal Market**: The coal market remains strong, with healthy pricing levels, although there may be sequential declines in revenue per unit (RPU) due to market fluctuations [32][41] - **Intermodal Strategy**: The company is optimistic about the long-term growth of East Coast ports and the potential for permanent market share gains in intermodal services [64][65] This summary encapsulates the key points discussed during the conference call, highlighting the current state of CSX Corporation, its strategic initiatives, and the challenges it faces in the market.

CSX Corp (NASDAQ:CSX) Q1 2023 Earnings Conference Call April 20, 2023 4:30 PM ET Company Participants Matthew Korn - Head, Investor Relations Joseph Hinrichs - President, CEO & Director Jamie Boychuk - EVP, Operations Kevin Boone - EVP and Chief, Sales & Marketing Sean Pelkey - EVP & CFO Conference Call Participants Brian Ossenbeck - JPMorgan Chase & Co. Kenneth Hoexter - Bank of America Merrill Lynch Jonathan Chappell - Evercore ISI Fadi Chamoun - BMO Capital Markets Justin Long - Stephens Inc. Brandon Ogl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (☒) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR (☐) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-8022 CSX CORPORATION (Exact name of registrant as specified in its charter) Virginia 62-1051971 (State or other jur ...

CSX Corp (NASDAQ:CSX) JPMorgan 2023 Industrials March 15, 2023 8:00 AM ET Company Participants Sean Pelkey - EVP & CFO Conference Call Participants Brian Ossenbeck - JPMorgan Chase & Co. Brian Ossenbeck Good morning. Thank you all for joining us here on Day 2 of the transport track of the JPMorgan Industrial Conference. I'm Brian Ossenbeck, I cover the group for the bank. Very happy to kick off Day 2 here with CSX and CFO, Sean Pelkey, also have Matt Korn and the audience from IR. So Sean's got some slides, ...

CSX Corporation (NASDAQ:CSX) Barclays Industrial Select Conference February 23, 2023 8:00 AM ET Company Participants Joe Hinrichs - President and CEO Conference Call Participants Brandon Oglenski - Barclays Brandon Oglenski Okay. Good morning. I'm Brandon Oglenski, airline and transport analyst here at Barclays, and welcome to day two of our 40th Annual Industrial Select Conference. Happy to have everyone here in Miami Beach. I'm very happy to be kicking off today with CSX and joining us from CSX, Joe Hinri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (☒) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR (☐) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-8022 CSX CORPORATION (Exact name of registrant as specified in its charter) Virginia 62-1051971 (State or other jurisdic ...