(Source: CSX press release, April 14, 2015)
JACKSONVILLE, Fla. — CSX Corporation today announced first-quarter 2015 net earnings of $442 million, an 11 percent increase from $398 million in the same period last year. The company also generated earnings per share of $0.45, a 13 percent increase from $0.40 per share in the first quarter of 2014.
Highlights:
• Double-digit growth in operating income, net earnings and earnings per share
• Quarterly dividend increases 13 percent, effective in June
• New $2 billion share repurchase program
Revenue in the quarter was $3.0 billion, driven by growth across many of CSX’s markets and an improved pricing environment, partially offset by the impact of low natural gas prices, lower fuel recoveries and the strong U.S. dollar. At the same time, the benefit of lower fuel prices and cost-saving initiatives more than offset higher inflation and volume-related costs in the quarter. As a result, operating income increased by 14 percent to $843 million and the operating ratio improved 330 basis points to 72.2 percent.
“In this dynamic economic and business environment, CSX’s core earnings remain strong and we are continuing our drive to provide excellent service for our customers and value for our shareholders,” said Michael J. Ward, chairman and chief executive officer. “Our commitment and confidence in CSX’s future is underscored by the positive shareholder actions we’re taking today.”
The CSX Board of Directors has approved an increase in the quarterly dividend and a new share repurchase program. The 13 percent increase in the dividend, to $0.18 per share, is payable on June 15, 2015 to shareholders of record at the close of business on May 29, 2015. This is the 13th increase in 10 years, representing a 26 percent compound annual growth rate during that time. The new, $2 billion share repurchase program is expected to be completed over the next 24 months. This follows the successful completion of CSX’s previous repurchase plan, during which the company bought back $1 billion worth of shares. Since 2006, CSX has repurchased nearly $9 billion in shares.
CSX executives will conduct a quarterly earnings conference call with the investment community on April 15, 2015, at 8:30 a.m. Eastern time. Investors, media and the public may listen to the conference call by dialing 1-888-EARN-CSX (888-327-6279) and asking for the CSX earnings call. Callers outside the U.S., dial 1-773-756-0199. Participants should dial in 10 minutes prior to the call. In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at http://investors.csx.com. Following the earnings call, an internet replay of the presentation will be archived on the company website.
This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.