CSX Sees High-single Digit Volume Declines In Q2; To Negatively Impact Profit

(RTTNews) - CSX Corp. (CSX) said that it now expects high-single digit volume declines in the second quarter, which will negatively impact second quarter earnings.

The company expects year-to-date volume declines across most of our markets, reflecting continued low global commodity prices, the strong U.S. dollar, and the transition in the energy markets

Executive Vice President and Chief Financial Officer Frank Lonegro spoke with investors and analysts today at the Bank of America Merrill Lynch Transportation Conference in Boston. Lonegro said, " With the impact of improving service and ongoing initiatives to drive further network efficiency, CSX now expects efficiency savings for the full year to exceed $250 million, approaching a company record. However, market forces are still expected to more than offset the gains in safety, service, pricing and efficiency, resulting in the company's first full-year earnings decline since the recession.

Looking forward, CSX is driving long-term strategies to maximize its evolving business portfolio, including transforming its network to match resources with demand, leveraging technology solutions for service and efficiency, investing in the future of intermodal, and continuing to focus on delivering excellent service for customers. As the company's business transitions to merchandise and intermodal markets, these initiatives are designed to drive earnings growth and margin expansion as CSX continues to target a mid-60s operating ratio longer term.