csx 2006_Bear_Stearns_Presentation-REF22877


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

csx 2006_Bear_Stearns_Presentation-REF22877

  1. 1. Bear Stearns Global Transportation Conference May 2006 1 1
  2. 2. Forward Looking Disclosure This presentation and other statements by the Company 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, 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 typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “project,” 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 does update 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 these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by these 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 or business conditions, including those affecting the rail 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; and (v) the outcome of claims and litigation involving or affecting the Company. 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. 2 2
  3. 3. Core strategies are driving marketing focus Profitable Growth Revenue Impact 2005 Revenues $8.6 Billion Merchandise 50% Automotive Operational 10% Discipline Intermodal 16% Performance Culture Coal 24% 3 3
  4. 4. Focus on profitability is improving returns Percentage of Rail Cars Above Reinvestment Hurdle Rates Prior Current 25% 65% 35% 75% Above Hurdle Below Hurdle 4 4
  5. 5. Yield environment remains strong Revenue Per Unit Year-Over-Year Improvement 12% 11% 10% 10% 9% 8% 7% Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 5 5
  6. 6. Environment for growth remains strong Transportation demand Transportation Index still near record levels Indexed: 2000=100 120 Full-year outlook: 110 — GDP 3.3% 100 — IDP 3.9% 90 80 ISM Index stands at 55% 70 Continued strength in 60 imports and exports 90 93 96 99 02 05 Source: Bureau of Transportation Statistics 6 6
  7. 7. Coal growth expected to remain strong Utility demand remains strong Syracuse Buffalo Boston Detroit Car utilization improving Chicago New York Cleveland Philadelphia Baltimore St Louis Western coal demand Portsmouth increasing Nashville Memphis Charleston New plants being served Mobile Jacksonville New Orleans Tampa Miami Coal Utilities Coal Reserves 7 7
  8. 8. Intermodal growth targeted in key lanes On-time performance is the foundation for growth Syracuse Buffalo Boston Detroit — Chicago–FL 90% Chicago New York Cleveland Philadelphia — Chicago–NE 90% Columbia Baltimore Cincinnati St Louis — NE–FL 90% Evansville Portsmouth Charlotte Nashville Memphis Key service lanes have Atlanta Charleston train capacity for growth Savannah Mobile Jacksonville New Orleans Partnerships with Trucks Tampa are increasing Miami Intermodal Terminals Priority Intermodal Corridors 8 8
  9. 9. Automotive growth limited near-term Full-year production still expected to be flat Syracuse Buffalo Boston Detroit Traditional Big-3 Chicago New York Cleveland expected to continue Philadelphia Columbia Baltimore losing market share Cincinnati St Louis Portsmouth Nashville Memphis Long-term strategy continues to focus on Charleston Savannah “new domestics” Jacksonville New Orleans Tampa Miami Distribution Centers Big-3 Assembly Plants “New Domestics” Assembly Plants 9 9
  10. 10. Merchandise growth driven by economy Merchandise Revenue Manufacturing remains $4.2 Billion strong 10% Customer service is 27% improving 13% Phosphate & Fertilizer 13% decline impacted by world 12% inventory levels 8% 17% Industrial development Chemicals Food & Consumer drives long-term growth Forest Products Emerging Markets Agriculture Metals Phosphates & Fertilizers 10 10
  11. 11. Development drives long-term growth Merchandise • Ethanol Facilities • Feed Mills Syracuse • Aggregate Facilities Buffalo Boston • Plastics Plants Detroit New York Chicago Coal Philadelphia Baltimore • New Facilities St Louis Portsmouth • Plant Expansions • Conversions Memphis Intermodal Charleston Savannah • Port Development Jacksonville • Logistics System New Orleans Tampa Automotive Miami • Assembly Plant • Supplier Facility 11 11
  12. 12. Looking forward . . . Core strategies are gaining solid momentum Revenue Operational Performance Impact Discipline Culture Transportation environment remains strong Volume growth will build momentum further 12 12
  13. 13. Bear Stearns Global Transportation Conference May 2006 13 13