csx 2004_Bear_Stearns_Presentation-REF21834

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Post on 02-Jul-2015



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<ul><li> 1. CSX CorporationBear Sterns Global Transportation Conference Clarence GoodenExecutive Vice PresidentChief Commercial Officer </li></ul> <p> 2. CSX operates the largest rail network in the eastern United States Covers 23,400 route miles in 23Montreal states, the District of Columbia, and two Canadian ProvincesSelkirk BostonSyracuseBuffalo Serves all major eastern Detroit Newark New York CityChicagoToledo markets and more ports than Willard Harrisburg PhiladelphiaPittsburgh any other railroad Baltimore ColumbusCumberland Washington D.C.Indianapolis CincinnatiCharlestonHuntington East St. Louis Norfolk Louisville Operates 144 terminalsRocky Mount Knoxville Nashville Charlotte Hamlet Memphis Operates over 100,000 freightAtlanta Charleston cars and over 4,000 locomotivesBirmingham Savannah MontgomeryWaycross Jacksonville Pensacola Employs 34,000 dedicatedNew Orleans individualsOrlandoTampa West Palm Beach Miami 3. Earnings improvement stalled in 2003, as the operating ratio reached 88% Rail Operating IncomeRail Operating Ratio Dollars in millions Dollars in millions90% 90%$995$995 88% 88% 87% 87% $907$902 $907$90286%86% $713$7132000 2001 2002 200320002001 200220032000 2001 2002 200320002001 20022003Note: Operating income and operating ratio exclude one-time charges 4. Restoring the companys earnings power is being driven in three key areasRevenue Operating Organizational Impacts ImprovementsEffectiveness Price Leadership Price LeadershipSafety SafetyOrganizational Organizational EffectivenessEffectiveness Profitable Growth Profitable Growth Zero-based Plan Zero-based Plan InitiativeInitiative Offset Inflation Offset InflationAsset Utilization Asset Utilization Process Process Productivity ProductivityImprovementImprovement TeamsTeams 5. The Surface Transportation management reorganization is now complete Management reductions total approximately 900 Annual savings estimated at $90 million Increased accountability across the organization Enhanced communication and speed of decision making 6. The CSX One Plan is being developed to drive productivity Why a new operating plan What is involved The power of ONEProcess improvement will leverage best practices with greater accountability 7. CSX will improve yield by leveraging our network and an improving economy Year-over-year Change in Revenue Dollars in millions Dollars in millions$90 $90 $85 $85 $82 $81 $82 $81 $60 $60 $53 $53 $30 $30 $37 $37$7$7$5$31$5$31$0$0 ($7) ($29) ($7) ($29) ($30) ($30)($54)($54) ($60) ($60)Q3Q4 Q1 Q2Q3 Q4Q1Q2Q3Q4 Q1Q3Q4 Q1 Q2Q3 Q4Q1Q2Q3Q4 Q1 2001200220032004 8. CSXs intermodal network provides coast to coast serviceVancouver SeattleTacoma MontrealPortlandToronto Syracuse Chicago Detroit MassachusettsBuffaloCleveland IndianapolisNew YorkColumbusKansas CityPhiladelphia CincinnatiOakland E. St. Louis EvansvilleBaltimoreLathrop Portsmouth Nashville MemphisGreensboro CharlotteLos Angeles Greenville Atlanta CharlestonDallas Mobile SavannahHouston Jacksonville New OrleansOrlandoTampa Laredo Miami Monterrey Guadalajara Queretaro CSXI Rail Service LocationsCSXI Trucking ServiceMexico City 9. We continue to expand our market reach with TRANSFLO 10. We are developing new markets and converting traffic from other modes 11. CSXs focus on increasing price has never been stronger Service improvement is underway Rail-truck economics have never been better Rail-truck The economy is rebounding Favorable STB rulings enhance pricing opportunities Revenue growth will offset inflation </p>