csx 2004_Bear_Stearns_Presentation-REF21834

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csx 2004_Bear_Stearns_Presentation-REF21834

  1. 1. CSX Corporation Bear Sterns Global Transportation Conference Clarence Gooden Executive Vice President Chief Commercial Officer
  2. 2. CSX operates the largest rail network in the eastern United States • Covers 23,400 route miles in 23 Montreal states, the District of Columbia, and two Canadian Provinces Selkirk Boston Syracuse Buffalo • Serves all major eastern Detroit Newark New York City Chicago Toledo markets and more ports than Willard Harrisburg Philadelphia Pittsburgh any other railroad Baltimore Columbus Cumberland Washington D.C. Indianapolis Cincinnati Charleston Huntington East St. Louis Norfolk Louisville • Operates 144 terminals Rocky Mount Knoxville Nashville Charlotte Hamlet Memphis • Operates over 100,000 freight Atlanta Charleston cars and over 4,000 locomotives Birmingham Savannah Montgomery Waycross Jacksonville Pensacola • Employs 34,000 dedicated New Orleans individuals Orlando Tampa West Palm Beach Miami
  3. 3. Earnings improvement stalled in 2003, as the operating ratio reached 88% Rail Operating Income Rail Operating Ratio Dollars in millions Dollars in millions 90% 90% $995 $995 88% 88% 87% 87% $907 $902 $907 $902 86% 86% $713 $713 2000 2001 2002 2003 2000 2001 2002 2003 2000 2001 2002 2003 2000 2001 2002 2003 Note: Operating income and operating ratio exclude one-time charges
  4. 4. Restoring the company’s earnings power is being driven in three key areas Revenue Operating Organizational Impacts Improvements Effectiveness ••Price Leadership Price Leadership ••Safety Safety ••Organizational Organizational Effectiveness Effectiveness ••Profitable Growth Profitable Growth ••Zero-based Plan Zero-based Plan Initiative Initiative ••Offset Inflation Offset Inflation ••Asset Utilization Asset Utilization ••Process Process ••Productivity Productivity Improvement Improvement Teams Teams
  5. 5. The Surface Transportation management reorganization is now complete • Management reductions total approximately 900 • Annual savings estimated at $90 million • Increased accountability across the organization • Enhanced communication and speed of decision making
  6. 6. The CSX One Plan is being developed to drive productivity • Why a new operating plan • What is involved • The power of ONE Process improvement will leverage best practices with greater accountability
  7. 7. CSX will improve yield by leveraging our network and an improving economy Year-over-year Change in Revenue Dollars in millions Dollars in millions $90 $90 $85 $85 $82 $81 $82 $81 $60 $60 $53 $53 $30 $30 $37 $37 $7 $7 $5 $31 $5 $31 $0 $0 ($7) ($29) ($7) ($29) ($30) ($30) ($54) ($54) ($60) ($60) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 2004
  8. 8. CSX’s intermodal network provides coast to coast service Vancouver Seattle Tacoma Montreal Portland Toronto Syracuse Chicago Detroit Massachusetts Buffalo Cleveland Indianapolis New York Columbus Kansas City Philadelphia Cincinnati Oakland E. St. Louis Evansville Baltimore Lathrop Portsmouth Nashville Memphis Greensboro Charlotte Los Angeles Greenville Atlanta Charleston Dallas Mobile Savannah Houston Jacksonville New Orleans Orlando Tampa Laredo Miami Monterrey Guadalajara Queretaro CSXI Rail Service Locations CSXI Trucking Service Mexico City
  9. 9. We continue to expand our market reach with TRANSFLO
  10. 10. We are developing new markets and converting traffic from other modes
  11. 11. CSX’s focus on increasing price has never been stronger • Service improvement is underway • Rail-truck economics have never been better Rail-truck • The economy is rebounding • Favorable STB rulings enhance pricing opportunities • Revenue growth will offset inflation

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