CSX(US:CSX)2025-01-23 21:01Financial Performance - Fourth quarter 2024 operating income was $1.11 billion, down 16% from $1.32 billion in the prior year period[2] - Net income for the fourth quarter was $733 million, or $0.38 per diluted share, compared to $882 million, or $0.45 per diluted share, in the same period last year[2] - Total revenue for the fourth quarter was $3.54 billion, a decrease of 4% year-over-year, primarily due to declines in fuel surcharge and coal revenue[8] - For the full year 2024, operating income was $5.25 billion, down 5% from the previous year, with net income of $3.47 billion, or $1.79 per share[3] - Adjusted operating income for the fourth quarter was $1.21 billion, and for the full year it was $5.35 billion, resulting in adjusted operating margins of 34.3% and 36.8% respectively[8] - The operating margin for the year ended December 31, 2023, was revised to 37.5%, down from 37.9%[26] - GAAP operating income for Q4 2024 was $1,106 million with an operating margin of 31.3%[69] - Adjusted operating income for Q4 2024 increased to $1,214 million, reflecting an adjusted operating margin of 34.3%[69] Revenue and Volume Metrics - The total volume for the fourth quarter was 1.58 million units, which was 1% higher compared to the fourth quarter of 2023[2] - Total revenue decreased by 4% in Q4 2024 compared to Q4 2023, primarily due to lower fuel recovery and coal revenue, partially offset by higher merchandise pricing and volume[37] - Total merchandise volume increased slightly by 1% to 650 million tons in 2024, while total revenue per unit decreased by 5% to $2,247[36] - Coal tonnage decreased by 7% in Q4 2024, with domestic coal down 12% and export coal down 3% compared to Q4 2023[44] - Fuel surcharge revenue decreased to $221 million in Q4 2024 from $334 million in Q4 2023, reflecting lower fuel prices[39] - Intermodal volume increased by 5% in 2024, driven by higher international shipments and growth with key customers[42] Cash Flow and Assets - Cash and cash equivalents decreased to $933 million from $1.35 billion year-over-year[19] - Total assets increased to $42.76 billion, up from $42.21 billion in the previous year[19] - Net cash provided by operating activities decreased to $5,247 million in 2024 from $5,514 million in 2023[22] - The company reported a net decrease in cash and cash equivalents of $420 million for the year ended December 31, 2024[22] - Total cash used in investing activities increased to $2,605 million in 2024 from $2,227 million in 2023[22] - Free cash flow (FCF) before dividends for 2024 was $2,784 million, a decrease from $3,345 million in 2023[81] - Cash from operating activities in 2024 was $5,247 million, compared to $5,514 million in 2023[81] Challenges and Impairments - The company faced challenges in 2024, including impacts from major hurricanes and infrastructure outages, but remained focused on customer satisfaction and operational efficiency[4] - The company recognized a goodwill impairment charge of $108 million in the fourth quarter of 2024[30] - Goodwill impairment expense for Quality Carriers was $108 million for 2024, reflecting challenges in that segment[49] - The company incurred a goodwill impairment of $108 million in Q4 2024, impacting net earnings[69] Safety and Operational Metrics - Train velocity remained flat at 18.3 miles per hour, while dwell time increased by 17% to 11.2 hours compared to Q4 2023[54] - The FRA personal injury frequency index increased by 42% to 1.01 in Q4 2024, indicating a deterioration in safety performance[56] - The company reported a FRA personal injury frequency index and train accident rate, which are essential for safety performance metrics[63] Strategic Outlook - The company plans to continue strategic investments to enhance economic profit and shareholder returns[70] - Future outlook includes addressing the impacts of tax payments related to Hurricane Idalia, which affected cash flow dynamics[79]