CSX Corp. is on target for its fourth-quarter earnings expectations and is confident of the longer-term outlook, Chief Financial Officer Fredrik Eliasson told those attending the Credit Suisse Global Industrials Conference in New York on Wednesday, Dec. 3, 2014.
"Fourth-quarter volume is tracking at the level we expected, and we are seeing strength across nearly all markets we serve," Eliasson said. "Longer term, we remain focused on the three key levers that deliver superior shareholder value: pricing above inflation, driving ever more efficient operations and growing our merchandise and intermodal businesses faster than the economy by developing new customers on our network, investing in our intermodal business and leveraging the benefits of the new energy environment."
Eliasson said CSX is making critical resource investments to restore service to previous record levels and position the company to capitalize on the long-term growth opportunities that exist across nearly the company's entire business mix.
The company continues to expect to produce double-digit earnings growth and margin expansion in 2015, ambitiously aiming for an operating ratio in the "mid-60s."
CSX on Wednesday also emphasized safety as a business factor, touting the success of its "Safety Train: Energy Preparedness Program," recently completing its 2014 tour, training 2,022 first responders from more than 350 public safety organizations in 18 cities.
Using a rolling classroom and rail cars, the program provides firefighters, police officers, emergency management professionals, and other first responders with insights on how rail cars work and how to respond to rail-related incidents, CSX said. The program was offered in partnership with the Firefighters Training and Education Foundation.
"The Safety Train is just one example of CSX's commitment to helping first responders prepare for potential rail-related incidents," said Skip Elliott, vice president, public safety, health and environment, CSX. "In 2014 we expanded our outreach with first responders and emergency personnel to include training specific to crude-oil movements along key routes. Interest from public-safety employees was tremendous and we are happy to have had the chance to partner with so many different agencies."
The CSX Safety Train comprises a locomotive, four tank cars, one flat car equipped with a variety of tank-car valves and fittings, two classroom cars, and a caboose. CSX hazardous-material specialists lead training sessions with specific instruction on how crude oil and other hazardous materials are shipped. The training and instruction help strengthen CSX's partnership with first responders and provide a higher level of emergency readiness.