CSX(US:CSX) ZACKS·2024-09-13 16:06Core Viewpoint - CSX is facing financial challenges due to rising operating expenses, despite commendable efforts in safety and shareholder rewards [1][4]. Group 1: Safety and Operational Initiatives - CSX has launched a three-year initiative aimed at enhancing safety, focusing on cultural transformation and proactive risk management [2]. - The initiative builds on the ONE CSX program, emphasizing inclusivity and respect within the organization [2]. Group 2: Shareholder Returns - In Q2 2024, CSX repurchased shares worth $16 million and announced a 9.1% increase in its quarterly dividend to 12 cents per share [3]. - The company has consistently returned significant capital to shareholders, totaling over $3.7 billion in 2021, $5.58 billion in 2022, and $4.36 billion in 2023 [3]. Group 3: Financial Performance and Challenges - CSX's top line experienced a significant decline in Q2 2024, with overall volume down 3% year over year, impacting domestic shipments [4]. - The bottom line decreased by 9% year over year due to unfavorable pricing and a mix of utility costs, compounded by a 2% rise in total labor expenses compared to Q2 2023 [4]. - Year-to-date, CSX shares have declined by 3.5%, while the industry average fall is 1.5% [4].