CSX Corporation Announces Fourth-Quarter and Full-Year Earnings Results
Solid fourth quarter and full-year financial performance, including the company’s first sub-70 full-year operating ratio, despite challenging market conditions
Continued focus on pricing, efficiency and resource alignment helped offset market conditions in 2015
Impact of continued low commodity prices, strong U.S. dollar and energy market transition is expected to further challenge 2016 performance
JACKSONVILLE, Fla. - January 12, 2016 - CSX Corporation (Nasdaq: CSX) today announced fourth quarter net earnings of $466 million, a 5 percent decline from $491 million in the same period of 2014, or $0.48 per share, down 2 percent from $0.49 in the prior year.
Fourth quarter revenue declined 13 percent as pricing gains were more than offset by the impact of lower fuel recovery, a 6 percent volume decline and continued transition in the company’s business mix. Expenses also decreased 13 percent, primarily reflecting reduced fuel prices, lower volume-related costs and efficiency gains. As a result, operating income declined 12 percent to $791 million, while the operating ratio improved 20 basis points to 71.6 percent.
For the full year 2015, CSX generated $11.8 billion in revenue as growth in intermodal, automotive and minerals markets partially offset continued significant declines in coal. In this environment, the company delivered earnings per share of $2.00, up 4 percent from 2014, on net earnings of $2.0 billion. Improving service, resource alignment and efficiency gains helped generate operating income of nearly $3.6 billion and the company’s first sub-70 full-year operating ratio at 69.7 percent.
“CSX delivered solid results in 2015 by balancing strong service with compelling cost control and efficiency gains despite a market challenged by low commodity prices and global impacts of the strong U.S. dollar.” said Michael J. Ward, chairman and chief executive officer.
“With negative global and industrial market trends projected for 2016, full-year earnings per share are expected to be down compared to 2015. CSX will continue to be rigorous about efficiency, resources and service quality in order to maximize shareholder value and achieve a mid-60s operating ratio longer term.”
The following information was filed by Csx Corp (CSX) on Tuesday, January 12, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: CSX CIK: 277948 Form Type:10-K Annual Report Accession Number: 0000277948-16-000046 Submitted to the SEC: Wed Feb 10 2016 11:48:55 AM EST Accepted by the SEC: Wed Feb 10 2016 Period: Friday, December 25, 2015 Industry: Railroads Line Haul Operating