(CSX issued the following on July 17.)
JACKSONVILLE, Fla. — CSX Corporation today reported second quarter 2007 earnings of $324 million, or 71 cents per share. Last year the company reported second quarter earnings of $390 million, or 83 cents per share, including a 25 cent per-share gain from insurance recoveries related to Hurricane Katrina and benefits associated with the resolution of certain tax matters. Excluding these items, earnings per share for the second quarter of 2006 were 58 cents. (See table below for reconciliation of quarter items to reported numbers.)
“CSX employees delivered another great quarter with record revenues, strong safety and service performances and increased productivity,” said Michael Ward, chairman, president and CEO. “These results continue to reflect the renaissance in both our industry and our company.
“We are pleased with the value we are creating for our shareholders on a sustained basis,” said Ward. “In the three-years ending June 30, the value of CSX stock nearly tripled from $16.39 to $45.08, placing our growth among the top 5 percent of all stocks in the S&P 500.”
Second quarter revenues were a quarterly record $2.5 billion, a nearly 5 percent increase over the second quarter of 2006. Strong pricing drove revenue-per-unit gains of 7 percent while overall second quarter volume was down approximately 2 percent, compared to last year, reflecting continued softness in the housing- and automotive-related sectors of the economy.
CSX Surface Transportation businesses recorded second quarter operating income of $603 million. Second quarter 2006 operating income was $645 million, including $126 million of insurance recovery gains. On a comparable basis, excluding the insurance recoveries, operating income rose 16 percent in the second quarter 2007.
The sustained pricing momentum achieved by CSX, as well as productivity, safety and service improvements, combined to reduce the Company’s operating ratio to 76.2 percent for the quarter, better than last year’s second quarter on a comparable basis by 240 basis points.
“We remain focused on delivering a compelling value equation for shareholders by continuing to drive double-digit growth in our financial performance,” said Ward. “At the same time, we are committed to managing our capital structure through a balanced approach that includes investments in our vital rail infrastructure for the long-term, share repurchases and dividend increases.”
In the second quarter, CSX repurchased $548 million of its common stock as part of its $3.0 billion share repurchase program. In 2007, the company has repurchased $727 million and expects to complete the program by the end of 2008. During the second quarter, CSX also announced a 25% increase in the company’s quarterly dividend to $0.15, payable in September to shareholders.