CSX Corp (NASDAQ:CSX) Q2 2019 Earnings Conference Call - Final Transcript

Jul 16, 2019 • 04:30 pm ET

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CSX Corp (NASDAQ:CSX) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Ken Hoexter with Bank of America Merrill Lynch. You can ask your question.

Analyst
Ken Hoexter

Great. Good afternoon, and thanks for the discussion here. Maybe just talk a little bit about the performance, right. So a phenomenal operating ratio. Yet when you show your data, the on time arrivals continue to fall. Maybe, just understand how that's possible given they -- are you tightening the time frames to different levels, or is that different than the improvements you're making on the performance?

Executive
Bill Slater

Great. Well, the difference between on time originations and on time arrivals versus trip playing compliance, which is measuring the blocks as it moves through the network or on time departures if we report to the STB, we're close to 100%; high 90s now. And arrivals is kind of in the high 80 -- mid to high 80s just most recently here one. The trip plan compliance on the other end, which is not measuring their trade performance, is measuring how the car moves through the network from the time we pick it up to the customer. And when we tell the customer, we'll have it to his customer in a 114 hours. How often do we make that 114 hour trip plan? And in every time -- and when we started measuring this, we were maybe in the 30 -- high 30% of the time we were making that trip plan and now we're in the high 7 -- close to 90 and intermodal and high 70s for the carload business. And yes, to answer your question, every time we start getting where we're producing really good results. Jamie and the operating team get in there and tighten up the schedule and make it more difficult for everyone, because ultimately that results in a much better product for the customer.

Executive
Kevin Boone

Ken to give you a little perspective, last year and second quarter of '18, we had an average luck. We had early departures about 16 -- 76 minutes early, or as you look at this year we're departing of only 20 minutes early, so we can get ourselves a lot of cushion last year, which obviously would translating lot more costs. So we're tightening the windows and you can see it in that differential which helps us manage our assets a lot better.

Executive
Bill Slater

Helpful review. And my second one, or follow up, I guess is -- maybe just moving over to Mark and Jim, since you open that up, maybe Mark, you can talk about given the shift of the outlook. Are you seeing an accelerating decline in kind of some of the economic indicators you're looking at? It just looks like carloads, you right have -- if we take out the Intermodal, which stays around that down double digit given your lane closures, it seems to -- are you seeing an underlying deceleration in some of the outlook? I don't know if you