CSX Positioned Well for Near-Term Economic Improvement and Long-Term Growth in the Freight Rail Industry
JACKSONVILLE, Fla., March 27, 2013 /PRNewswire/ -- CSX is a better, faster and more capable company than it was even one year ago, Michael Ward, the company's chairman, president and chief executive officer wrote to investors in the 2012 Annual Report delivered this week.
Last year the company successfully withstood a significant drop in its coal business by making quick adjustments in its operations and focusing on the mainstays of safety, service and productivity.
"Experience has shown that when CSX does those things well, we can turn good conditions into great results, or bad conditions into better results," Ward said, noting that employees led the major U.S. freight railroads in safety last year, drove customer satisfaction levels to all-time highs and delivered productivity savings of nearly $200 million.
Looking forward, the company believes that its key businesses other than coal will outpace the slow, steady growth that is expected in the economy in 2013, Ward said, and there is little reason the economy cannot gain momentum if Congress is able to pass more meaningful legislation to improve the long-term fiscal outlook and restore confidence.
"Our customers across many industries believe that America is primed for real recovery, and so do we," Ward said.
He reiterated CSX's confidence in the long-term outlook for its industry, which is based on a number of important factors:
- The inevitable movement of more freight as the population and its consumption rise;
- The pressing need to deliver freight efficiently between ports and people as global trade continues to build;
- The increasing congestion on the nation's highways, driving freight to rails;
- The re-industrialization of America as the country's efficient labor force and relatively inexpensive energy combine to create cost advantages for local or regional U.S. producers and demand for exports;
- The challenges associated with labor, fuel and other costs at trucking companies, which today are partnering with railroads for longer-haul movements; and
- The nation's need for more environmentally friendly transportation solutions.
CSX's rail network connects some of the most active economic centers of the world with small farming towns and seaports alike. The company plans to invest in that network at a record $2.3 billion level this year, on top of approximately $8 billion invested in the past four years. Those investments are part of the company's balanced program of capital deployment overall, including dividends and share repurchases.
Ward concluded his letter by thanking shareholders for their partnership and belief in the company. "We hope that our quick response to the tough conditions in 2012, and the responsible actions of our 32,000 employees, gave you even more confidence in this team and the investments you have made in the company," he said.
Full text of the CSX 2012 Annual Report, including Ward's letter to shareholders, can be found at http://investors.csx.com.
CSX Corporation, based in Jacksonville, Fla., is one of the nation's leading transportation companies, providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans approximately 21,000 miles, with service to 23 eastern states, the District of Columbia and two Canadian provinces. CSX's network connects more than 240 short line railroads and more than 70 ocean, river, and lake ports. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://www.facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "will," "should," "believe," "expect," "anticipate," "project," "estimate," "preliminary" and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others; (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.
SOURCE CSX Corporation
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