CSX Corp (NYSE:CSX) Q4 2014 Earnings Conference Call - Final Transcript

Jan 14, 2015 • 08:30 am ET


CSX Corp (NYSE:CSX) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen and welcome to the CSX Corporation Fourth Quarter 2014 Earnings Call. As a reminder today's call is being recorded. During this call all participants will be in a listen-only mode.

For opening remarks and introduction, I would like to turn the call over to Mr. David Baggs, Vice President of Capital Markets and Investor Relations for CSX Corporation.

David Baggs

Thank you, Wendy and good morning everyone. And again welcome to CSX Corporation's fourth quarter 2014 earnings presentation. The presentation material that we will review this morning, along with our expanded financial quarterly report and our safety and service measurements are available on our website at csx.com under the Investor section. In addition, following the presentation this morning, a webcast and podcast replay will be available on the same website.

This morning, our presentation will be led by Michael Ward, the Company's Chairman, President, and Chief Executive Officer and Fredrik Eliasson, our Chief Financial Officer. In addition Clarence Gooden, our Chief Sales and Marketing Officer and Oscar Munoz, our Chief Operating Officer will be available during the question-and-answer session.

Let me remind everyone that the presentation and other statements made by the company contains forward-looking statements. You are encouraged to review the company's disclosure on the accompanying presentation on Slide 2. This disclosure identifies forward-looking statements as well as the uncertainties and risks that could cause actual performance to differ materially from the results anticipated by these statements.

In addition at the end of the presentation, we will conduct a question-and-answer session with the research analysts. With about 30 analysts now covering CSX I would ask, as a courtesy for everyone to please limit your inquiries to one primary and one follow-up question. And with that let me turn the presentation over to CSX Corporation's Chairman, President and Chief Executive Officer, Michael Ward. Michael?

Michael J. Ward

Well, thank you David and good morning everyone. Yesterday, CSX reported fourth quarter earnings per share of $0.49, up 17% from $0.42 in the same period last year. This represents a new fourth quarter record for the company. Revenue grew 5% in the quarter to $3.2 billion, also a fourth quarter record with broad based growth across nearly all of our markets, reflecting continued economic momentum. Furthermore, the timely addition of operating resources enhanced -- through the [Indecipherable] and supported strong volume growth. As a result operating income increased 11% to a new fourth quarter record of $901 million and the operating ratio improved 140 basis points to 71.8%. This quarter's performance is further evidence of CSX's ability to capitalize on economic growth thus helping to drive strength across the company's diverse markets.

Turning to the next slide, I'll discuss our full year performance. The past four years have been transformative for CSX and we have emerged a stronger company for our customers and shareholders. That strength drove new full year records in 2014 for revenue at $12.7 billion, operating income at $3.6 billion and earnings per share of a $1.92 and the operating