CSX(US:CSX)2024-10-16 20:02Financial Performance - Q3 2024 operating income increased to $1.35 billion, up 7% year-over-year from $1.27 billion in Q3 2023[1] - Net earnings for Q3 2024 were $894 million, or $0.46 per diluted share, compared to $828 million, or $0.41 per diluted share, in Q3 2023[1] - Revenue for Q3 2024 totaled $3.62 billion, a 1% increase year-over-year, driven by growth in merchandise and intermodal volume[3] - Operating margin for Q3 2024 was 37.4%, up 180 basis points year-over-year[3] - Diluted EPS for Q3 2024 was $0.46, a 12% increase compared to the prior year quarter[3] - Net Earnings for the nine months ended September 30, 2024, were $2.737 billion, compared to $2.786 billion for the same period in 2023[19] - CSX's Economic Profit for nine months ended Sep 30, 2024 was $1.865 billion, compared to $1.993 billion in the same period of 2023[63] - CSX's operating income for nine months ended Sep 30, 2024 was $4.139 billion, compared to $4.184 billion in 2023[63] - Gross Cash Earnings (GCE) for nine months ended Sep 30, 2024 was $4.643 billion, slightly down from $4.647 billion in 2023[63] - Free Cash Flow (FCF) before dividends decreased by $301 million to $2.218 billion in nine months ended Sep 30, 2024 compared to 2023[66] Volume and Revenue - Total volume for Q3 2024 was 1.59 million units, a 3% increase compared to Q3 2023[1] - Total revenue increased 1% in Q3 2024 compared to Q3 2023, driven by higher merchandise and intermodal volumes, partially offset by lower coal revenue and fuel recovery[41] - Chemicals volume increased 9% in Q3 2024, with revenue up 13% to $727 million, driven by higher shipments of plastics, crude oil, and natural gas liquids[38][43] - Intermodal volume increased 3% in Q3 2024, with international shipments rising due to higher east coast port volumes, while domestic shipments remained flat[38][44] - Coal volume decreased 2% in Q3 2024, with domestic coal down 12% and export coal up 10%[38][46] - Total revenue ton-miles increased 2% in Q3 2024 to 48.8 billion, with merchandise up 4% and intermodal up 1%[53] Expenses and Costs - Labor and fringe expenses increased by 6% to $806 million in Q3 2024 compared to $761 million in Q3 2023[14] - Fuel expenses decreased by 21% to $276 million in Q3 2024 from $349 million in Q3 2023[14] - Total expenses decreased 2% in Q3 2024 to $2.3 billion, with labor and fringe costs up $45 million due to inflation and higher headcount[49] - Locomotive fuel consumption decreased 9% in Q3 2024, with fuel costs down 17% due to lower fuel prices and improved efficiency[51] - Fuel surcharge revenue decreased to $245 million in Q3 2024 from $266 million in Q3 2023, with a favorable fuel lag of $10 million[42] Cash Flow and Capital - Net Cash Provided by Operating Activities for the nine months ended September 30, 2024, was $3.859 billion, down from $4.025 billion in 2023[19] - Net Cash Used in Investing Activities for the nine months ended September 30, 2024, was $1.722 billion, compared to $1.506 billion in 2023[20] - Net Cash Used in Financing Activities for the nine months ended September 30, 2024, was $1.846 billion, down from $3.092 billion in 2023[22] - Cash and Cash Equivalents at the End of the Period were $1.644 billion for September 30, 2024, compared to $1.360 billion in 2023[22] - Property additions increased to $1.691 billion in nine months ended Sep 30, 2024 from $1.571 billion in 2023[66] Balance Sheet and Debt - Total assets as of September 30, 2024, were $43.069 billion, up from $42.212 billion as of December 31, 2023[17] - Long-term debt increased to $18.535 billion as of September 30, 2024, from $17.975 billion as of December 31, 2023[16] - CSX's Gross Operating Assets (GOA) increased to $46.3 billion in 2024 from $44.229 billion in 2023[63] - Capital Charge for nine months ended Sep 30, 2024 was $2.778 billion, up from $2.654 billion in 2023[63] Share Repurchases - Shares Repurchased during the nine months ended September 30, 2024, were 35 million at a cost of $1.212 billion, compared to 94 million shares at $2.901 billion in 2023[36] - Average Cost per Share Repurchased during the nine months ended September 30, 2024, was $34.60, up from $30.99 in 2023[36] Operational Metrics - Train velocity improved 6% in Q3 2024 to 18.6 miles per hour, while dwell time increased 7% to 10.3 hours[53] - FRA personal injury frequency increased 16% in Q3 2024, while the train accident rate decreased 25%[54][55] - The inclusion of Pan Am network data in operations performance metrics since Q2 2023 had an insignificant impact[56] - Safety metrics will include Pan Am network results starting January 1, 2024, with insignificant impact[56] Tax and Investment Criteria - The company uses a 15% tax rate and 8% required return rate for Economic Profit calculations, consistent with investment decision criteria[61] Revisions - Operating Income for the nine months ended September 30, 2023, was revised to $4.184 billion from $4.241 billion due to adjustments[30] - Net Earnings for the nine months ended September 30, 2023, were revised to $2.786 billion from $2.829 billion[30]