In This Article:
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Volume Growth: 2% for the year, with intermodal volume up 4% in Q4.
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Revenue: Declined 4% in Q4, impacted by lower coal prices and fuel surcharge.
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Earnings Per Share: Declined 7% on an adjusted basis in Q4.
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Coal Revenue: Declined 20% in Q4 with a 7% decrease in volume.
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Intermodal Revenue: Declined 5% in Q4 despite a 4% increase in volume.
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Merchandise Revenue: Flat in Q4, with a 3% increase for the full year.
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Adjusted Operating Income: Decreased 16% in Q4.
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Fuel Cost Savings: $86 million reduction in Q4 due to lower prices and efficiency.
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Shareholder Returns: $3.2 billion in 2024, including $2.2 billion in share repurchases.
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Capital Expenditure: Expected to be flat year-over-year, excluding hurricane recovery spend.
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CSX Corp (NASDAQ:CSX) achieved 2% volume growth for the year, outpacing the industrial economy.
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The company delivered strong, consistent customer service, leading to a high Net Promoter Score.
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CSX Corp (NASDAQ:CSX) led the rail industry in reaching early agreements with labor unions on 5-year contracts.
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Operational improvements resulted in significant fuel efficiency gains, saving millions of dollars.
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The Howard Street Tunnel project is expected to be completed much faster than originally planned, enhancing future operational capabilities.
Negative Points
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Quarterly revenue declined by 4% due to lower global coal prices and a decline in fuel surcharge.
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Earnings per share declined 7% on an adjusted basis, excluding goodwill impairment effects.
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The company faced substantial headwinds from hurricanes and lower commodity prices, impacting financial performance.
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Coal revenue declined 20% for the quarter due to reduced global benchmark pricing and production issues.
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The Blue Ridge and Howard Street Tunnel projects will add significant expenses throughout the year.
Q & A Highlights
Q: How do you think about full-year margin performance given the headwinds in the first half of the year? A: Sean Pelkey, CFO, explained that margin improvement is unlikely in the first half due to concentrated headwinds, especially in Q1. However, he anticipates potential growth in operating income and margins in the second half, assuming a stable operating environment and easing of headwinds.
Q: Do you expect to grow operating income this year despite the challenges? A: Sean Pelkey, CFO, noted that without the $350 million headwinds, CSX would see solid growth in operating income. However, due to utility coal headwinds and mine issues, growth might be towards the lower end of the mid- to high single-digit range, with a rebound expected in subsequent years.