CSX Corp. (CSX) Offers Q4 Update; Sees EPS Flat-to-Slightly Up
- Wall Street flat as banks gain, utilities drag
- Equinix (EQIX) Announces $3.6B Acquisition of Data Center Portfolio from Verzion (VZ)
- Deal Progress Said to Slow as Johnson & Johnson (JNJ) Puts Actelion (ALIOY) Under Microscope - Source
- Trump Wants to Cancel New Air Force One Order with Boeing (BA)
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
CSX Corporation (Nasdaq: CSX) Executive Vice President and Chief Financial Officer Frank Lonegro updated investors and analysts today at the Credit Suisse 4th Annual Industrials Conference regarding the company’s expectations for fourth quarter earnings per share and volume.
“We now expect fourth-quarter earnings per share on a reported basis to be flat to slightly up, as macroeconomic headwinds impacting the company’s volume are moderating,” Lonegro said. “At the same time, a recent operating property sale will now offset the impact of a debt refinancing charge announced earlier in the quarter.”
Quarter-to-date volume has declined three percent overall, and many markets are showing more moderate declines than in previous quarters. Coal in particular is showing sequential volume stabilization and is essentially flat in the fourth quarter to date. With macroeconomic headwinds moderating, Lonegro indicated that total volume is now expected to decline in the low-to-mid single digit range on a comparable 13-week basis, and expected to be flat to slightly up including the extra week that is part of CSX’s 2016 accounting year.
Lonegro also highlighted the results of CSX’s aggressive efficiency initiatives. Through the third quarter, CSX has delivered about $550 million of cost savings, which includes both efficiency initiatives and volume-related savings. He reinforced CSX’s expectations for full-year 2016 efficiency savings of around $400 million, including about $100 million from structural changes in the coal network, $150 million from normal productivity initiatives, and the balance from key initiatives such as train length which has increased 20 percent over the past two years.
Looking forward, as CSX continues to drive record efficiency and as its business portfolio transitions to more merchandise- and intermodal-centric markets, the company remains focused on providing a consistent, reliable service product for customers, which is critical to drive growth, sustain strong pricing and ultimately create long-term value for shareholders. Becoming the CSX of Tomorrow involves delivering employee and customer excellence that supports shareholder value creation; transforming the network by redeploying investment from low-density lines to the higher-density outer triangle to drive service efficiency and growth; leveraging technology to further improve safety, resource efficiency and service; and delivering service excellence for customers, which enables growth and supports pricing that reflects the value of the CSX service product. All of these initiatives will contribute to achieving a mid-60s operating ratio longer-term.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AutoZone (AZO) Tops Q1 EPS by 5c; Comps Light of Views
- Michaels Cos. (MIK) Misses Q3 EPS by 3c, Comps Fall 2%; Lowers Outlook, Announces $300M Stock Buyback
- Toll Brothers (TOL) Posts Improved Q4 Adjusted Pre-Tax Income
Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News, Management Comments
Related EntitiesCredit Suisse, Twitter, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!