CSX Reports First-Quarter Results; Rail Operations Up 14 Percent

Apr 23, 2001, 01:00 ET from CSX Corporation

    RICHMOND, Va., April 23 /PRNewswire Interactive News Release/ -- CSX
 Corporation (NYSE:   CSX) today reported first-quarter net earnings and earnings
 from continuing operations of $20 million, or 10 cents per diluted share.
 Core railroad and intermodal operating income was up 14 percent from a year
 ago, but this improvement was more than offset by an increase in "Other
 Expense" relating primarily to write-downs of certain non-rail assets.  In the
 same period last year, net earnings were $29 million, or 14 cents per diluted
 share, and earnings from continuing operations were $25 million, or 12 cents
 per diluted share.
     John W. Snow, chairman and chief executive officer, said, "In a period
 marked by a weakening economy and sharply higher year-to-year fuel prices, we
 operated a much more fluid, efficient rail network, resulting in lower overall
 costs.
     "Importantly, the railroad's management team is doing a significantly
 improved job meeting customer service expectations," Snow added.  "With better
 service, we have been able to raise rates selectively and bring new products
 to our markets, despite the slowdown in demand.  We are taking advantage of
 the expanded network benefits of the Conrail merger and carrying more freight
 that formerly moved on the highways."
     Snow noted, "A big story for us this year is coal.  Utility demand is
 exceptionally strong and should remain so throughout 2001.  Revenue gains in
 this sector have more than offset the decline we are seeing in the automotive,
 metals and intermodal markets. Longer term, we are encouraged by signs that
 policy makers and energy planners are considering increased use of coal to
 help address the nation's energy problems.
     "As we look out to the balance of the year, continued improvement in
 operations should further reduce our cost base," Snow said.  "Even as we
 recognize that the economic climate will be difficult, CSX should produce
 substantially stronger earnings comparisons as the year progresses."
     Operating income in the first quarter from continuing operations totaled
 $189 million, compared to $174 million a year ago on revenues of $2.03 billion
 in both years.
     At CSX's rail and intermodal businesses, operating income totaled $182
 million, versus $160 million a year ago on revenues of  $1.8 billion for both
 years.  Combined revenues and earnings from CSX's smaller international
 terminal and domestic container-shipping business were off slightly in the
 quarter from a year ago.
     "Other Expense" was $31 million in the 2001 first quarter versus
 $5 million a year ago.
     CSX Corporation, headquartered in Richmond, Va., operates the largest rail
 network in the eastern United States and also provides intermodal, domestic
 container-shipping and international terminal management services.  More
 information about the company is available at its internet address:
 http://www.csx.com.
 
     This press release and related material may contain statements about the
 Corporation's future that are not statements of historical fact.  The words
 "believe," "expect," "anticipate," "project" and similar expressions signify
 forward-looking statements.  These statements are "forward-looking statements"
 for the purpose of applicable securities laws and are based on current
 information and/or management's good faith belief as to the future events.
     Forward-looking statements include: projections and estimates of earnings,
 revenues, cost-savings, expenses, or other financial items; statements of
 management's plans, strategies and objectives for future operation and
 management's expectations as to future performance and operations and the time
 by which objectives will be achieved; statements concerning proposed new
 products and services; and statements regarding future economic, industry or
 market conditions or performance.
     Forward-looking statements are subject to risks and uncertainties.  Actual
 performance or results could differ materially from that anticipated by the
 forward-looking statement.  Important factors that could cause such a
 difference include: the Corporation's success in implementing its financial
 and operational initiatives; the impact of industry competition, conditions,
 performance and consolidation; legislative and/or regulatory developments,
 including initiatives to re-regulate the rail business; natural events such as
 severe weather; adverse general economic conditions, both within the United
 States and globally; changes in the securities and capital markets; changes in
 fuel prices; changes in labor costs; labor stoppages; and the outcome of
 claims and litigation.
     Forward-looking statements speak only as of the date the statement was
 made.  The Corporation assumes no obligation to update forward-looking
 information to reflect actual results, changes in assumptions or changes in
 other factors affecting forward-looking information.  If the Corporation does
 update any forward-looking statement, no inference should be drawn that the
 Corporation will make additional updates with respect to that statement or any
 other forward-looking statements.
 
 
     CSX Corporation and Subsidiaries
     CONSOLIDATED STATEMENT OF EARNINGS
     (Millions of Dollars, Except Per Share Amounts)
                                                              (Unaudited)
                                                            Quarters Ended
                                                       Mar. 30,       Mar. 31,
                                                         2001             2000
 Operating  Operating Revenue                           $2,025           $2,034
 Revenue
 and        Operating Expense                            1,836            1,860
 Expense    Operating Income                               189              174
            Other Income (Expense)                         (31)             (5)
            Interest Expense                               131              134
 Earnings   Earnings Before Income Taxes                    27               35
            Income Tax Expense                               7               10
            Earnings Before Discontinued Operations         20               25
            Income from Discontinued
               Operations - Net of Tax                      --                4
            Net Earnings                            	   $20              $29
 Per        Earnings Per Share, Assuming Dilution:
 Common       Before Discontinued Operations              $0.10           $0.12
 Share        Income from Discontinued Operations           --             0.02
              Net Earnings                                $0.10           $0.14
            Average Diluted Common Shares
              Outstanding (Thousands)                   211,897         212,015
            Cash Dividends Paid Per Common Share          $0.30           $0.30
 
     CSX Corporation and Subsidiaries
     CONSOLIDATED STATEMENT OF CASH FLOWS
     (Millions of Dollars)
                                                             (Unaudited)
                                                            Quarters Ended
                                                      Mar. 30,        Mar. 31,
                                                        2001             2000
     Operating
     Activities       Net Earnings                       $20               $29
                      Adjustments to Reconcile Net
                        Earnings to Net Cash Used
                            Depreciation                 157               147
                            Deferred Income Taxes          4                 2
                            Equity in Conrail
                               Earnings -- Net            (5)               (6)
                            Other Operating Activities     1                33
                            Changes in Operating
                             Assets and  Liabilities
                                Accounts Receivable       10                 6
                                Other Current Assets     (18)              (39)
                                Accounts Payable         (23)              (21)
                                Other Current
                                    Liabilities         (146)             (152)
                            Net Cash Used by
                               Operating  Activities      --                (1)
 
     Investing
     Activities       Property Additions                (183)             (107)
                      Short-Term Investments - Net       (83)              (23)
                       Other Investing Activities          1                11
                            Net Cash Used by
                               Investing Activities     (265)             (119)
     Financing         Short-Term Debt - Net            (271)              (81)
     Activities        Long-Term Debt Issued             500                 --
                       Long-Term Debt Repaid             (48)              (34)
                       Dividends Paid                    (64)              (66)
                       Other Financing Activities          8               (32)
                            Net Cash Provided (Used)
                               by Financing Activities   125              (213)
                       Net Decrease in Cash and
                         Cash Equivalents               (140)             (333)
                       Cash and Cash Equivalents at
                         Beginning of Period             261               626
                       Cash and Cash  Equivalents at
                         End of Period                   121               293
                       Short-Term Investments at
                         End of Period                   500               373
                       Cash, Cash Equivalents and
                         Short-Term Investments at
                           End of Period                $621              $666
 
 
     CSX Corporation and Subsidiaries
     CONSOLIDATED STATEMENT OF FINANCIAL POSITION
     (Millions of Dollars)
 
 
                                                   (Unaudited)
                                                     Mar. 30,         Dec. 29,
                                                       2001              2000
     Assets          Current Assets
                       Cash, Cash Equivalents
                          and Short-Term Investments   $621              $684
                       Accounts Receivable              840               850
                       Materials and Supplies           269               245
                       Deferred Income Taxes            122               121
                       Other Current Assets             148               146
                           Total Current Assets       2,000             2,046
                     Properties - Net                12,684            12,642
                     Investment in Conrail            4,673             4,668
                     Affiliates and Other
                      Companies                         344               362
                     Other Long-Term Assets             737               773
                               Total Assets         $20,438           $20,491
     Liabilities     Current Liabilities
                          Accounts Payable           $1,057            $1,079
                          Labor and Fringe
                           Benefits Payable             410               405
                          Casualty, Environmental
                           and Other Reserves           251               246
                          Current Maturities of
                           Long-Term Debt               188               172
                          Short-Term Debt               478               749
                          Other Current
                           Liabilities                  506               629
                               Total Current
                                    Liabilities       2,890             3,280
                     Casualty, Environmental and
                      Other Reserves                    745               755
                     Long-Term Debt                   6,212             5,810
                     Deferred Income Taxes            3,391             3,384
                     Other Long-Term
                      Liabilities                     1,224             1,245
                           Total Liabilities         14,462            14,474
     Shareholders'
     Equity          Common Stock                       213               213
                     Other Capital                    1,470             1,467
                     Retained Earnings                4,293             4,337
                        Total Shareholders'
                          Equity                      5,976             6,017
                        Total Liabilities and
                          Shareholders' Equity      $20,438           $20,491
 
 
 
     Notes to Consolidated Financial Statements
     CSX completed the sale of CTI Logistx, its wholly-owned logistics
 subsidiary on September 22, 2000.  The contract logistics segment is
 now reported as a discontinued operation and all prior periods in the
 statement of earnings have been restated accordingly.
 
                               MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X43277067
 
 

SOURCE CSX Corporation
    RICHMOND, Va., April 23 /PRNewswire Interactive News Release/ -- CSX
 Corporation (NYSE:   CSX) today reported first-quarter net earnings and earnings
 from continuing operations of $20 million, or 10 cents per diluted share.
 Core railroad and intermodal operating income was up 14 percent from a year
 ago, but this improvement was more than offset by an increase in "Other
 Expense" relating primarily to write-downs of certain non-rail assets.  In the
 same period last year, net earnings were $29 million, or 14 cents per diluted
 share, and earnings from continuing operations were $25 million, or 12 cents
 per diluted share.
     John W. Snow, chairman and chief executive officer, said, "In a period
 marked by a weakening economy and sharply higher year-to-year fuel prices, we
 operated a much more fluid, efficient rail network, resulting in lower overall
 costs.
     "Importantly, the railroad's management team is doing a significantly
 improved job meeting customer service expectations," Snow added.  "With better
 service, we have been able to raise rates selectively and bring new products
 to our markets, despite the slowdown in demand.  We are taking advantage of
 the expanded network benefits of the Conrail merger and carrying more freight
 that formerly moved on the highways."
     Snow noted, "A big story for us this year is coal.  Utility demand is
 exceptionally strong and should remain so throughout 2001.  Revenue gains in
 this sector have more than offset the decline we are seeing in the automotive,
 metals and intermodal markets. Longer term, we are encouraged by signs that
 policy makers and energy planners are considering increased use of coal to
 help address the nation's energy problems.
     "As we look out to the balance of the year, continued improvement in
 operations should further reduce our cost base," Snow said.  "Even as we
 recognize that the economic climate will be difficult, CSX should produce
 substantially stronger earnings comparisons as the year progresses."
     Operating income in the first quarter from continuing operations totaled
 $189 million, compared to $174 million a year ago on revenues of $2.03 billion
 in both years.
     At CSX's rail and intermodal businesses, operating income totaled $182
 million, versus $160 million a year ago on revenues of  $1.8 billion for both
 years.  Combined revenues and earnings from CSX's smaller international
 terminal and domestic container-shipping business were off slightly in the
 quarter from a year ago.
     "Other Expense" was $31 million in the 2001 first quarter versus
 $5 million a year ago.
     CSX Corporation, headquartered in Richmond, Va., operates the largest rail
 network in the eastern United States and also provides intermodal, domestic
 container-shipping and international terminal management services.  More
 information about the company is available at its internet address:
 http://www.csx.com.
 
     This press release and related material may contain statements about the
 Corporation's future that are not statements of historical fact.  The words
 "believe," "expect," "anticipate," "project" and similar expressions signify
 forward-looking statements.  These statements are "forward-looking statements"
 for the purpose of applicable securities laws and are based on current
 information and/or management's good faith belief as to the future events.
     Forward-looking statements include: projections and estimates of earnings,
 revenues, cost-savings, expenses, or other financial items; statements of
 management's plans, strategies and objectives for future operation and
 management's expectations as to future performance and operations and the time
 by which objectives will be achieved; statements concerning proposed new
 products and services; and statements regarding future economic, industry or
 market conditions or performance.
     Forward-looking statements are subject to risks and uncertainties.  Actual
 performance or results could differ materially from that anticipated by the
 forward-looking statement.  Important factors that could cause such a
 difference include: the Corporation's success in implementing its financial
 and operational initiatives; the impact of industry competition, conditions,
 performance and consolidation; legislative and/or regulatory developments,
 including initiatives to re-regulate the rail business; natural events such as
 severe weather; adverse general economic conditions, both within the United
 States and globally; changes in the securities and capital markets; changes in
 fuel prices; changes in labor costs; labor stoppages; and the outcome of
 claims and litigation.
     Forward-looking statements speak only as of the date the statement was
 made.  The Corporation assumes no obligation to update forward-looking
 information to reflect actual results, changes in assumptions or changes in
 other factors affecting forward-looking information.  If the Corporation does
 update any forward-looking statement, no inference should be drawn that the
 Corporation will make additional updates with respect to that statement or any
 other forward-looking statements.
 
 
     CSX Corporation and Subsidiaries
     CONSOLIDATED STATEMENT OF EARNINGS
     (Millions of Dollars, Except Per Share Amounts)
                                                              (Unaudited)
                                                            Quarters Ended
                                                       Mar. 30,       Mar. 31,
                                                         2001             2000
 Operating  Operating Revenue                           $2,025           $2,034
 Revenue
 and        Operating Expense                            1,836            1,860
 Expense    Operating Income                               189              174
            Other Income (Expense)                         (31)             (5)
            Interest Expense                               131              134
 Earnings   Earnings Before Income Taxes                    27               35
            Income Tax Expense                               7               10
            Earnings Before Discontinued Operations         20               25
            Income from Discontinued
               Operations - Net of Tax                      --                4
            Net Earnings                            	   $20              $29
 Per        Earnings Per Share, Assuming Dilution:
 Common       Before Discontinued Operations              $0.10           $0.12
 Share        Income from Discontinued Operations           --             0.02
              Net Earnings                                $0.10           $0.14
            Average Diluted Common Shares
              Outstanding (Thousands)                   211,897         212,015
            Cash Dividends Paid Per Common Share          $0.30           $0.30
 
     CSX Corporation and Subsidiaries
     CONSOLIDATED STATEMENT OF CASH FLOWS
     (Millions of Dollars)
                                                             (Unaudited)
                                                            Quarters Ended
                                                      Mar. 30,        Mar. 31,
                                                        2001             2000
     Operating
     Activities       Net Earnings                       $20               $29
                      Adjustments to Reconcile Net
                        Earnings to Net Cash Used
                            Depreciation                 157               147
                            Deferred Income Taxes          4                 2
                            Equity in Conrail
                               Earnings -- Net            (5)               (6)
                            Other Operating Activities     1                33
                            Changes in Operating
                             Assets and  Liabilities
                                Accounts Receivable       10                 6
                                Other Current Assets     (18)              (39)
                                Accounts Payable         (23)              (21)
                                Other Current
                                    Liabilities         (146)             (152)
                            Net Cash Used by
                               Operating  Activities      --                (1)
 
     Investing
     Activities       Property Additions                (183)             (107)
                      Short-Term Investments - Net       (83)              (23)
                       Other Investing Activities          1                11
                            Net Cash Used by
                               Investing Activities     (265)             (119)
     Financing         Short-Term Debt - Net            (271)              (81)
     Activities        Long-Term Debt Issued             500                 --
                       Long-Term Debt Repaid             (48)              (34)
                       Dividends Paid                    (64)              (66)
                       Other Financing Activities          8               (32)
                            Net Cash Provided (Used)
                               by Financing Activities   125              (213)
                       Net Decrease in Cash and
                         Cash Equivalents               (140)             (333)
                       Cash and Cash Equivalents at
                         Beginning of Period             261               626
                       Cash and Cash  Equivalents at
                         End of Period                   121               293
                       Short-Term Investments at
                         End of Period                   500               373
                       Cash, Cash Equivalents and
                         Short-Term Investments at
                           End of Period                $621              $666
 
 
     CSX Corporation and Subsidiaries
     CONSOLIDATED STATEMENT OF FINANCIAL POSITION
     (Millions of Dollars)
 
 
                                                   (Unaudited)
                                                     Mar. 30,         Dec. 29,
                                                       2001              2000
     Assets          Current Assets
                       Cash, Cash Equivalents
                          and Short-Term Investments   $621              $684
                       Accounts Receivable              840               850
                       Materials and Supplies           269               245
                       Deferred Income Taxes            122               121
                       Other Current Assets             148               146
                           Total Current Assets       2,000             2,046
                     Properties - Net                12,684            12,642
                     Investment in Conrail            4,673             4,668
                     Affiliates and Other
                      Companies                         344               362
                     Other Long-Term Assets             737               773
                               Total Assets         $20,438           $20,491
     Liabilities     Current Liabilities
                          Accounts Payable           $1,057            $1,079
                          Labor and Fringe
                           Benefits Payable             410               405
                          Casualty, Environmental
                           and Other Reserves           251               246
                          Current Maturities of
                           Long-Term Debt               188               172
                          Short-Term Debt               478               749
                          Other Current
                           Liabilities                  506               629
                               Total Current
                                    Liabilities       2,890             3,280
                     Casualty, Environmental and
                      Other Reserves                    745               755
                     Long-Term Debt                   6,212             5,810
                     Deferred Income Taxes            3,391             3,384
                     Other Long-Term
                      Liabilities                     1,224             1,245
                           Total Liabilities         14,462            14,474
     Shareholders'
     Equity          Common Stock                       213               213
                     Other Capital                    1,470             1,467
                     Retained Earnings                4,293             4,337
                        Total Shareholders'
                          Equity                      5,976             6,017
                        Total Liabilities and
                          Shareholders' Equity      $20,438           $20,491
 
 
 
     Notes to Consolidated Financial Statements
     CSX completed the sale of CTI Logistx, its wholly-owned logistics
 subsidiary on September 22, 2000.  The contract logistics segment is
 now reported as a discontinued operation and all prior periods in the
 statement of earnings have been restated accordingly.
 
                               MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X43277067
 
 SOURCE  CSX Corporation

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