CSX : 2021 Q4 Earnings Presentation

CSX

2021 FOURTH QUARTER EARNINGS CONFERENCE CALL

0 1 . 2 0 . 2 0 2 2

FORWARD LOOKING DISCLOSURE

This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "will," "should," "believe," "expect," "anticipate," "project," "estimate," "preliminary" and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward- looking statements include, among others; (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.

Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.

2 0 2 1 F O U R T H Q U A R T E R E A R N I N G S C O N F E R E N C E C A L L

2

NON-GAAP MEASURES DISCLOSURE

CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results.

Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX's non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP measures to corresponding GAAP measures are attached hereto in the Appendix of this presentation.

2 0 2 1 F O U R T H Q U A R T E R E A R N I N G S C O N F E R E N C E C A L L

3

FOURTH QUARTER HIGHLIGHTS

1,570K

$3,427M

$1,366M

Volume

Revenue

Op. Income

Operating Income

$1,215M

$1,366M

12% Increase

Q4 20

Q4 21

Operating Ratio

60.1%

57.0%

310 bps Increase

Q4 20

Q4 21

Earnings Per Share

$0.42

$0.33

27% Increase

Q4 20

Q4 21

2 0 2 1 F O U R T H Q U A R T E R E A R N I N G S C O N F E R E N C E C A L L

4

FOURTH QUARTER REVENUE HIGHLIGHTS

Revenue gains across all major lines of business led by

coal and intermodal growth

Chemicals increased due to core chemicals and waste growth, partially offset by lower shipments of crude oil and other energy-related commodities

Agricultural & Food Products increased as higher shipments of export grains and ethanol were partially offset by lower food and consumer product shipments

Minerals increased due to higher shipments of aggregates, cement and lime

Automotive decreased due to lower North American vehicle production, which continues to be affected by shortages of semiconductors

Forest Products increased primarily due to higher shipments of pulpboard, woodpulp and building products

Metals and Equipment increased as growth across metals markets was partially offset by reduced equipment shipments

Fertilizers increased as higher long-haul fertilizer shipment revenue was partially offset by a decline in short-haul phosphate shipments

Intermodal increased on higher international shipments driven by strong demand, inventory replenishments and rail volume from East Coast ports

Coal increased due to export coal volume growth and higher global benchmark prices

Other Revenue increased due to higher intermodal storage and equipment usage revenue as well as higher demurrage and affiliate revenue

Q4 Revenue Up 21% Year Over Year

Chemicals

4%

Ag & Food Products

6%

Minerals

11%

Automotive

(18%)

Forest Products

12%

Metals & Equip

14%

Fertilizers

8%

Intermodal

16%

Coal

39%

Other

87%

2 0 2 1 F O U R T H Q U A R T E R E A R N I N G S C O N F E R E N C E C A L L

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

CSX Corporation published this content on 20 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 January 2022 21:10:17 UTC.