CSX to Outline Plans Targeting a 60 Percent Operating Ratio at 2018 Investor Conference.(CSX)

NEW YORK CITY – March 1, 2018 – CSX Corporation (NASDAQ: CSX) President and
CEO James M. Foote today will outline CSX’s plans to build upon the foundation of the
company’s scheduled railroading model, increase efficiency, control costs, grow the
business and target a 60 percent operating ratio by 2020.
President and CEO James M. Foote
“Our continued focus on service and efficiency improvements have helped generate momentum in our effort to create a better product offering for customers and strong financial returns for shareholders. “While our scheduled operating model has already produced significant operational and financial benefits, substantial opportunities
exist to further optimize the network, leverage excess capital, create savings and grow our franchise.”
Highlights of CSX’s Financial Targets
  • Full-year operating ratio of 60 percent by 2020
  • Revenue growth at a compound annual rate of 4% in 2019 and 2020
  • Average annual capital expenditures of $1.6 billion through 2020
  • Cumulative free cash flow of $8.5 billion from 2018 to 2020
  • Share re-purchase of $5 billion to be complete by Q1 2019
 He added:
“Today marks the beginning of a new chapter for CSX, and we’re confident we have the right plan and the right team in place to achieve our goal of becoming the best railroad in North America. “The foundation of scheduled railroading has been set, and we expect to identify real growth opportunities that will benefit shareholders as our changes take hold.”
Since implementation of scheduled railroading began at CSX in March 2017, the
company has taken significant strides to streamline the organization and to make CSX
more competitive, including the following:

New executive leadership committee in place with mandate to centralize planning and decentralize execution to eliminate bureaucracy, facilitate decision-making and enhance process improvement.

Evolved the disparate regional operating cultures into a single CSX culture, driven

by a flatter and more streamlined reporting structure converting 9 operating 

divisions into 4 operating regions and initiating consolidation of 9 dispatching
offices to a central location.
Reduced the number of hump yards from 12 to 4 (Avon, Cincinnati, Selkirk and
Waycross) to reduce freight handlings and transit times.
Altered the network design to create a more balanced train plan focused on long
haul, higher density lanes with faster transit times and fewer delays.
Produced six consecutive months of performance improvement,
hitting record levels for dwell and velocity in 2018.
Foote concluded:
“The growth and success of CSX today is a testament to the leadership of our management team, which will deliver on the potential of our extraordinary rail network and market reach. The performance improvements of CSX’s new operating model create a virtuous cycle of capacity and utilization, reducing congestion through asset utilization and trip plan compliance.”
Management presentations from the CSX Investor and Analyst Conference will be
accessible on the company’s website at http://investors.csx.com. An internet replay of the
presentation will be archived on the company’s website.
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