JACKSONVILLE, Fla., Nov. 10, 2015 /PRNewswire/ -- CSX (NYSE: CSX) Chief Financial Officer Frank Lonegro today reinforced the company's 2015 guidance and outlined expectations for key markets in 2016 at the Baird Industrial Conference in Chicago.
"CSX has leveraged its diverse portfolio and network reach to consistently deliver record earnings per share growth, despite declines in coal revenue of more than $1 billion over the past four years," Lonegro said. "While we expect the energy market headwinds to continue in 2016, we are focused on capturing opportunities in intermodal and industrial markets, and on delivering excellent service for customers to support our pricing, growth and efficiency targets."
Facing continued headwinds in the energy markets, CSX expects fourth quarter 2015 earnings per share to decline slightly compared to the same period in 2014. The company continues to target mid-single digit full-year earnings per share growth as intermodal growth and efficiency initiatives offset about $450 million in coal revenue declines.
CSX also continues to expect meaningful margin expansion in 2015 and a mid-60s operating ratio longer term as the company leverages longer trains, drives industrial development to leverage merchandise growth, continues investing in intermodal, and matches resources to business demand across its coal network.
Growth in 2016 will be led by intermodal, as CSX continues to drive highway-to-rail conversions to capture a share of the estimated 9 million loads in the East that are well-positioned for intermodal service. At the same time, efficient service for automotive customers will lead industrial market growth as North American Light Vehicle production increases.
About CSX and its Disclosures
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CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 190 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.