CSX Corp (NYSE:CSX) Q1 2019 Earnings Conference Call Transcript

Apr 16, 2019 • 04:30 pm ET

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CSX Corp (NYSE:CSX) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the CSX Corporation's First Quarter 2019 Earnings Call. As a reminder, today's call is being recorded. During this call, all participants will be in a listen-only mode. Following the presentation, we will be conducting a question-and-answer session. (Operator Instructions)

For opening remarks and introduction, I would like to turn the call over to Mr. Bill Slater, Chief Investor Relations Officer for CSX Corporation. Sir, you may go ahead.

Executive
Bill Slater

Thank you, and good afternoon, everyone. Joining me on Today's call is Jim Foote, President and Chief Executive Officer; Frank Lonegro, Chief Financial Officer, and Mark Wallace, Executive Vice President of Sales and Marketing.

On slide two is our forward-looking disclosure followed by our non-GAAP disclosure on slide three.

With that, it is my pleasure to introduce President and Chief Executive Officer, Jim Foote.

Executive
James M. Foote

Thanks, Bill, and thank you all for joining us today. As you know, Kevin Boone is taking on new responsibilities, and I'd first like to thank him for the great job he did in leading our Investor Relations efforts and for helping me directly over the last 15 months. We are happy that Bill Slater decided to join CSX and with his experience on the buy-side and in private equity, he will be a great addition to the team.

As for the quarter, solid performance across many measures produced both record financial results and record service. I want to thank all of the CSX employees, especially those in the field for their hard work and keeping the railroad running on time during difficult weather conditions. Despite the challenging conditions, CSX set new records in Q1 for just about every service metric. While we're all proud of these accomplishments, nobody is resting on that success.

I'd also like to add a little more detail on the recent appointment of Kevin to Vice President of Marketing and Strategy, and Arthur Adams to Vice President of Sales and Customer Engagement. Both report to Mark in the expanded sales and marketing organization and are part of the continuing effort to build a highly skilled team focused on finding creative ways to address our customers' key transportation needs and drive profitable sustained growth.

Kevin will develop and lead a group focused on utilizing deep research and analytics to identify and advance new business opportunities and high-priority growth initiatives across our merchandise markets. Arthur, who is our Head of Marketing Services is leading the transformation of customer service operations and e-solutions in addition to directing our TRANSFLO operations. And he's adding an expanded team, targeting small and medium-sized customers to his responsibility. His initial area of focus will also be the merchandise segment. Both Kevin and Arthur will do a great job for us and ultimately, our shareholders.

Now, let's get to the presentation. Slide five, and start with our results. The results are once again straightforward, with only a few small unique items that Frank will point out. First quarter EPS increased 31% to a $1.02