CSX - Earnings call transcript Q4 2018

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Operator

Good afternoon, ladies and gentlemen and welcome to CSX Corporation fourth quarter 2018 earnings call.

As a reminder, today's call is being recorded.

During this call, all participants will be in a listen-only mode.

Following the presentation, we will be contacting a question-and-answer session. [Operator Instructions].

introduction, to now Mr. and the to remarks over call opening I like would turn For Kevin CSX Corporation. Chief Boone, Investor Relations Officer for

Kevin Boone

you afternoon Thank good and everyone. Shirley

to Foote, Officer, Joining by and Executive non-GAAP President and Executive three. two Vice introduce and slide Officer is is today's Sales me Wallace, With Jim disclosure Officer, for is On on and Mark on Chief Lonegro, my Frank Chief that, followed Marketing. Foote. Executive President Chief our Financial call disclosure pleasure President and it Jim slide forward-looking

Jim Foote

thank the success foundation for of to team and an again and the put and we challenge breeds first call on afternoon incredible you on built. What of to amazing the CSX Good and new I Kevin again railroaders. and everyone today. trajectory. company like proud have Success recognize this being They thank year. have am a would I up the stepped

is CSX eliminated us our an wrote will all there years we busy While opportunities Millions be come. and unnecessary are improve in marketing more plenty operations, for other story amazing Across and functions, of chapter, the the organization, to sales improvement keep our transformation them can still first processes service to events to to allow customers business and of be for which early. efficient.

infrastructure money yards, their locomotives, service or goals but This stock efficiency better customer's by less We assets. only cars year are to the Whether other make rolling set CSX a not little continue it's towards reducing money fewer and progress to than a finding saves needs. with ago. saves deliver we ways

return safe flexibility free to significantly cash return dividends maintain us which projects significant in high provide to the cash progress to and through railroad, and to reliable shareholders flow, Our buybacks. translated and allows invest more has a

straightforward. EPS on Results five. an grew basis. Turning to XX% slide are adjusted

the And a I to operating U.S. performance. fourth also XX.X% is ratio Our a record basis quarter full XXX ratio record. year points improved Class XX.X%, operating QX railroad

Turning to six. slide

broad-based with price the positive was XX% revenue all the there see encouraged XX% contributing strength growth. can our recovery, business Revenue volume, you from am I with performance merchandise increased see portfolio. overall across to growth. As strong and other to revenue, fuel

Solid helped with exception we positive across XXXX all performance headwind X% to volume from of closure. the the customer fourth growth discussed face In drive markets previously continued a fertilizers, plant fertilizers. quarter

strength also up was export made our has couple in We should part some company of the also Significant very domestic our with X%. appears core volumes normalize business reengineering strength. Coal rationalizations, markets in offsetting next saw been revenues long transitory which growth. in progress very intermodal increased positions business X% saw fertilizer the with grew X% The profitable growth Met healthy steel which shows good term the export weakness. revenue utility Intermodal for customers weakness and Domestic important industrial announced despite in our this better which months. and previously growth.

On fees. were injuries quarters, train revenue basis, on increases accidents. and year-over-year On supplemental safety. remain driven good a previous to saw similar gains in seven, slide by Finally, in other personal FRA progress I both primarily focused we

where I While far is see the encouraging be. are progress, to it numbers them some from expect to

while Cars performance company. trend volume the weeks of on the in a specific I in priority X%. couple sequential a continued increased while see both in positive Only this improvement for On January both eight, slide saw movement, velocity to efficiency XX% down safety train seeing every into year-over-year, year-over-year. XXXX, online measures. over currently company of with As these down, and include momentum employee dwell record improved metrics targets. must of positive our year-over-year service side, and Safety bonus targets annual X, be

a As translated see which later, with directly track we you different you on And hire metrics basis. periodically we share significantly will car lower daily to expense. this

to bottom Locomotives mileage by capital a the means miles of the able daily right our same maintenance, freight. each out this On save in fuel reducing is fewer locomotive locomotives for get are fleet per the significant reflects cost This need locomotive. of the Improvement company move on we are we we amount day. and requirements. active and average metric to

and revenue. ended active locomotives down year we grew the count locomotive XXX Our while over volume

to Now you Frank, off take the through let who will me hand financials. it

Frank Lonegro

and everyone. Jim afternoon you good Thank

slide XX, to walk Turning will I the statement. income summary through you

accounting our and reported our impacts of as appendix restructuring significant full quarterly reform, line a results items adjustments these have provided and several to impacted our of of the charges the in remnants tax drove reconciliation financial These changes a and items for materials adjusted shows, in slide well the the as between we pension As difference these report. XXXX.

that impacts congestion. are increases fuel merchandise, storage car The revenues and and from of results. Total increased environment remained quarter revenue fourth was quarters, increase well the and offset with our other pricing also year-over-year be particular primarily as prior a pricing by of improved and healthy due intermodal merchandise supportive XX% other to up These variance revenue the in carload demand the intermodal strong. in in comments coal year-over-year, For particularly charges. service contracts recoveries, per overall export higher car gains the comparability, a broad-based volumes equipment and driven levels my with the Other was ownership favorable quarter, expenses adjusted fourth focused will to X% incidental in XXXX's freight hire revenue. gains unit supported increased benchmarks. intended to in with renewed product, Consistent traffic pricing for freight X% on by quarter demurrage, revenue as mix strength strong together network in

to line in accessorial Given the charges, note of and demurrage relates quarter, on carload third it thought important item to the business. STB's that we demurrage a was recent focus the in only this

to expect any excluding in XXXX, other which we liquidated rate forward, slightly we decline look when they damages, and disclose we if As the will revenue for run occur.

Labor to flat even for X% company expenses The compensation headcount volume. X% fringe Moving fourth CEO, was cycling of operating year-over-year with results. more X% the and employee expense quarter. the as in which down was is former our average reversal previously share-based impacted Total relatively expenses. were reported higher favorably XXXX's

litigation awards current railroad Additionally, to tax compensation retirement we in the on topic. quarter, given share-based the prior recognized this industry's win refunds years, related from recent

for reduction velocity, in operating Non-productive originations side, fewer plan network improvements led trip trains re-crews, XX% and an the road basis. drove a crew These favorable to quarters. declined in on results to fluidity, year-over-year crew train improvement per active have measured operating On and XX% GTM year-over-year five compliance and by starts. sequentially labor. a of employee and arrivals Shifting a straight in indicator engine active enabled XX% and significantly improved on-time productivity,

locomotive year-over-year. mechanical count side, active was the the down XX% On

storage fleet, to locomotives an efficiencies, XXXX. in cars addition hundreds engines our continue in with combined XXX online have the over workforce. mechanical the We of beginning decrease and sold, The returned have of in X% drive helped craft we freight to repair lower year-over-year smaller or since scrapped car

With continues every respect opportunity and goal as Our to our XXXX for well decline costs. reduce look contractors we overhead union management our to consultants, G&A of includes workforce, X,XXX as we as employees reductions. which and to also our total exceeded headcount

X% support will increased At operating historical together a labor year-over-year high total XXXX, rates. fluidity improved MS&O opportunistic versus functions with workforce prior year. in service would to attrition streamlining and drive forward expense level, in significant expect a to with come Looking we down our our productivity. line the

asset which line. Our did have in said, MS&O the operations year-over-year expense. were quarter in efficiencies this service within favorable several impacts the for driving remained strong quarter With improvements non-core that with we

resulted in an the asset million $XX million $XX impairments Specifically, of quarter, increase in discontinued of year-over-year. projects

there fuel. into MS&O shifted gains in was million year. a Additionally, from the MS&O higher real were Similar quarters, estate recent from lines, credits QX other benefited than expense reclassification to primarily which $XX prior expense year-to-date certain that

good assets from the monetize XXXX continuing cumulative upside $XXX potential our sale toward real surplus million estate target with our and along to line are through for making progress are proceeds. sales We for

the quarter-to-quarter be We continue continue of strong have opportunities, and year-to-year. real will a of from transactions to line though impact sale to uneven and pipeline estate these

Depreciation expense asset due increased in was larger efficiency. per gallon the year-over-year, other partially X% base. improved driven up to the items. net Fuel primarily impact price, XX% by increase of a offset expense at Looking a by

we Specifically, utilized savings. gallons GTMs, with slightly higher X.X even million efficiency driving fewer fuel favorable

utilization a cycling efficiency the We improved in will of earnings fuel network and drive by continued XX% in we year-over-year $XX we times, expense and recognized as the Equipment affiliates. gain the and million merchandise by significantly and quarter increased non-recurring of to decreased automotive the decreased processes rents the optimization $XX prior in segments sequential Equity particularly car company's technologies. further as fuel cycle driven are continued fluidity through strong improvements. million equity year one see in service improvement

Looking rate. quarter coupon earnings, benefit was with issued increased pre-tax line. Tax due continued in expense to tax offset weighted of average the year, additional even better reform. Interest we below this debt primarily a the by expense reflecting lower lower the partially significantly the

timing rate effective than to certain for between of Absent and was unique closer with XX.X% of tax compensation rate XX.X% tax mainly we be QX state expect prior due the due to quarter, lower stock-based slightly the our to in settling to Our items, the effective XX.X% matters. XX% guidance, payouts. XXXX

record $X $X.XX, our discussed XX%, the As in opening to per tax XX% the up XX.X% bonus also and quarter representing expect nearly billion, year-over-year. remarks, cash Jim Closing operating delivered slightly, P&L, basis operating of CSX improvements of points over be we out as roll-off given respectively and income conference, highlighted ratio share of XXX investor at his time. our fourth of earnings rate depreciation of

in the of XX% with progress flow this illustrating on Turning to flow. cash reform. of free the This the strength generation tax company's in $X.X cash down capital equation drove was core million, generation XXXX, the XX% nearly capabilities or scheduled core were in substantial $XXX intensity increase in CSX's operating Adjusted an year over reduced cash the or cash combined nearly XX% billion an investments slide the of year adjusted model. Capital side $X railroading XX. billion the cash together benefits full with of flow intensity reflecting year-over-year, the operating of increase reduction capital

it free disciplined in combined income supplemented a XXX% the deliver generation at significant cash capital by balance We revenue week, net in growth, free this In back earlier to flow converted buyback flow billion fully returns of billion. cash turn expense repurchases authority. essentially control remarks. sheet, to investment company help billion This strong impact that, the a his XXXX. share the executed quarter for substantial completed expect of cash $X.X nearly of $X high XXXX, and closing rate. Jim fourth $X.X free let Importantly, in we over to conversion flow support shareholder improvement With the and me prior

Jim Foote

Great. Thanks much Frank. so

XX slide talk are some a I to XXXX. color about But before provide high seeing from revenue, few like comments about a to with I level. Turning what we would on specifically

a have large different days, consistent been the feedback today. few I industries. past spoken the Over with across to customer and it's General demand number seeing levels has of positive customers are we

hard intermodal Talking about. merchandise the be lanes in return our driven about strength, talked out growth, in slowdown digits reflects I XXXX. to markets, intermodal trend point expect by to muted business. to low impacted While of that overall total call growth XXXX. equity any single it's today ignore should in This business intermodal year, a the in I by volatility significant would this we Normalized our have cannot up in rationalization revenues

coal back into the similar export prices coming As of year, recalled, we of at view half in XXXX, benchmark but healthy levels. some remaining our expect of to very the moderation

XXXX the maintain best position efficiency. operating in the goal to is service our our As as and to ratio,

now outperform I at of is while our at get from look and year a previous XXXX baseline that a XX% some we including This in clearly through the that you sales. revenue for than CSX If adjusts full the trending a in estate am closer measure good to from XXXX the Mark I which improvement represents to better expected Investor Day guidance. XXXX for XX% operations in including free we cash continued last team. early. believe our of growth benefits expect in At over areas finished target number across March billion XX.X%, his our occurred better where efficiency guided leveraging of three happy $X.X we report years, to real XXXX. to and are of line XXXX. I real estate XXXX we OR flow ahead cumulative gains XXXX

As part billion in CapEx cash $X.X expect and outlook, flow between we free XXXX. billion be of our to $X.X

share in new the you $X as a repurchase have we announced saw billion authorization. release, press Finally,

said, be Part Frank determine our completed As of the annual cash term expected. the Board's well company's earlier performance newly our take complete we reviewing pace capital the uses was buyback and share current the billion against at of its and as will business with Board the the which conditions $X into share outlook existing targets for the buyback than long and consideration The process for price optimize will structure to authorized which company's we will value process as review program. stock the long-term shareholders. economic discussing

the love rail being to have right really in You industry now.

at means work a mechanical get Thank that people the more job they CSX great we fleet customers' railroad be keeping is the So to The higher folks be shape, our With the many network proud you. bar it's best able to happening. build said, this deliver. see having and considered America. achieve that maintain a not employees making It It's in from winners. to T&E to success. that our to the I But in engineering North Kevin? of be does what who XXXX. great easier we kind have is lot our are our it employees products any CSX here. need get and were exciting that of in things to and the of capable team where couldn't

Kevin Boone

ask time, you. everyone we In Thank Shirley, only take themselves limit will you to Thank of necessary. would questions. I one one like follow-up to to interest and question if Jim. now

Operator

[Operator Instructions] Wadewitz Our with Tom first question comes from UBS.

your ask may question. You

Tom Wadewitz

afternoon. comments that have expect a that and the like up It in metrics in cost improvement metrics. to bit Good performance Jim, would lot like further in translates the Yes. OR put that I then sounds, to Is the the think about you little you you operating think so but see. they would translate continue. XXXX? right well? And we look it? way metrics your I a have don't, forth. how wanted you to side we ask some a maybe It obviously am the you to XXXX? improvement of as seems from and maybe velocity, dwell thinking follow-on side at I Do that to cost on

Jim Foote

improve grind Sure to are mean, we make velocity. Tom. and Yes. going I to continue improvement and

consistently We ways best-in-class. go to to improve. still long to dwell And become are there continues

well As the we all performance those drive improve plan with will increasing two factors, our trip numbers that for our time. customers as compliance

So it's metrics we to continue better. get used have and that in the past definitely the will same they

Tom Wadewitz

Great. Okay.

sounds translation as there should it side So the a of like be well. cost

gains? think Or about that? Is that those have thinking a adjusting you you perspective adjustment XXXX base an won't like on more gains, do a give land the that what of kind how mentioned you that You you look Your of [Indiscernible]. for adjusted. more think out? are kind would at, we primarily are OR sales? Can sale you of XX% land of little of we

Jim Foote

are Tom. and kind achievement saying going that say are is, No, area at to better the if what to say to good forward in It's better are of say, okay, kind overachieved XX.X% do starting it that we going you and than are in we what's we XX%, foolish XX%. to that I say am going order over normalize take move and of and to point? and do We than

target us expected forward our we remember, take and had when XXXX, to that you in again, to say for into XXXX of XX%. XX% real are goal are trying we it we XXXX, for in sales we were go around what in put just higher XXXX that at to going we if these estate than set So beat out believe originally context that starting we everyone are to XX% and really

Tom Wadewitz

Okay.

saying? around think primary it's So sales. real estate you we are what primarily how That's about

Jim Foote

Yes.

that did of on years. that $XXX number we we do doesn't That mean and a than to million than had had more just $XXX better three think going over means XXXX. we I we in a It are that. the million trend

And thought this look so up, that consideration, hit we again, years. said, when months we for nine when ago, we thinking in everybody as into rolled taking three were XX% a insane could at, we operating that people we ratio

trying in put timeframe. a We that are do than better context just to it that to in show going better and we to than do going that are are shorter to we

Tom Wadewitz

Right.

the you Thank for Great. Okay. time.

Operator

you. Thank

Mehrotra Amit from comes question Deutsche Bank. next with Our

You question. may ask your

Amit Mehrotra

Hi. Thanks taking operator. Thanks the for question.

about? So the just you that could the margin if that significant. bit and is cost outside out company's volume the was you the coal between it costs you parse also more uncertain half, back even Clearly is I a are growth improvement Jim, stands help the opportunity outlook talk for today, but opportunity us perspective the hoping where significant volumes in than expecting export

So think in you OR control much of dependent is impact if much just could two the volume now guidance environment? How and of about environment really us of terms out is you in in how XXXX. those that of put the the that the on and that your help macro net

Jim Foote

performance. a move we order Well, to as to growth merely to as in said, the just we forward grow we plan and here reduce have costs have always not is need our company's topline financial

have and technology it's there continue balance trains as said, on and this. with do earlier, been more for a running believe of unnecessary costs, that have to us we the out lot always into which many reduce we the talked So the our distributed cost whether customer's network products more have power, that side practices we improves we way improves to the a looked of the and efficiency of we I throughput continue handle opportunity same put more and fuel improve as touches, fluidity. being other using our at it's to That that place, through to eliminating already

it's in many constantly terms of those further drive are out on of the both time, volume of growth the costs focused So same company. the that same and initiatives we At will price. topline

volume We view the And again, segments, a "growth which year started the took said I as of lot industry". reengineer have, level we the that we a business meant few up. year starting just X% we with the came reasons, we of Well engine with various which the times, out quite to of for the taking a intermodal had railroad of railroad. X% at the business is high off XXXX,

So about the means X% X%, plus okay. recurring X%

I So circumstances, the under pretty would say, good.

Amit Mehrotra

Okay.

Jim Foote

To these a to and for volumes going few benchmarks that the of XX CSX happen recognized for in universe what's steam of to until did high would with for export, be guess the trying and has was while we an everybody large which degree, the of of had kind along probably with they anticipated, we the stable weeks a coal coal that not domestic in side it basically been and stay terms issue very at full business the but relatively both coal, would December. to their for last met months, levels else

nobody price well, still us these bit right gave high. right levels little are optimism are seeing for us that is coal. there gave now revenue locked-in the as benchmarks is a boost that The a for which sure. are now. a strong saying But still on The So better, we of

but probably will So the still be the in good half for say, somewhat of to decline second us it's prudent year. they

Amit Mehrotra

Right.

Jim Foote

most cars side on to trains the operating The we change railroad. from and time where were way area customers' is the the merchandise benefits the the of model that in get the at running business business. over the side merchandise looking things half and then forgetting your old the of from And

segment we scheduled quality this have we going first in we around and the to our expecting, have didn't some went business service, a truck XX% as time start turn of a it So product away for needs. have railroading of customer because already that, the improved which and to are business are is time, to our implemented went grow long and met merchandise CSX, long the service we at of here business time that are we a seeing and

we that So volume I it fully the all that in we making recent this the company, product product guess the customer talked business across fantastic key of the as which attitude, reports that service excited offer. Again, do to plenty we of and this done that the see anything numerous way highlighted Mark, something from we merchandise [Indiscernible]. heart the of they growth very are about and base company. have expect do that, part else? new there. to are is is have And the add I want you we business new service segments

Amit Mehrotra

Okay.

Let are kind really that has the want Or just doesn't of am operating about Does I unless you Is like one kind network? best that where thinking the if in me actually language. levels what in seem quick target understand tie you ratio that the America. target too accompanies best in much for because railroad changed? the there just talk reading service right run could has the Jim, for best just very that translate I North is North high ask to you watermark America that seem is it follow-up, just XX% far if XXXX could. I to into something means. the that Does America? of XXXX the out now? too changed North it the And then you in

Jim Foote

first all, North the safest. best and Okay. said, of railroad I means? what does First America the Well as in foremost,

the manner in best by as industry providing best measure ratio. and at in And one the way it's way look customer operating could at, the that most company's is service Second, the possible service that by being the everybody customers to the that the and base in above the most measured looking efficient recognized to doing had one else at the manner. efficient commonly

the operating railroad. of North That said the is history press American we ratio ever said we had this have the best I a a as XX.X% in and in As year. release,

this XX those guys ahead are at ahead of and we who and stay guys. CN for ahead and years been we the the have of these XX of or are CP to We plan

We an XX% have we this is, that operating that was to years is we two from an ratio be are going to year. going What in are now. than saying ratio XX% operating better have

not all. same, It York, efficiency crazy, at in we of not significant a as be. we going it it's ahead to said the months and and is full dramatic So said, said improvement be year I our we nine done. A were said where can't it everybody when were performance. And New ago in we

Amit Mehrotra

All right. appreciate Thanks it. guys. I

Operator

The comes with Oglenski you. Thank Barclays. question Brandon next from

You may ask your question.

Brandon Oglenski

rationalization Hi last you represent bit XXXX? that you that talk guys. again, I of your can guess little on on a intermodal more Jim could Well, interchange following Mark, questioning. of headwind that? or some much, But it how with it highlighted about was the that And had I along in West. lane quarter you partners you could business? have the think the line optimizing from about maybe if elaborate that

Mark Wallace

Sure.

So so briefly what let just XXXX. in everyone understands we me did repeat

had end the was the an from then made a of XXXX model, we began our business hub Jim those impacts we what and of and our we just about that intermodal when at X% the year impact mentioned, of getting away broken As this fixing changes business. intermodal thought to journey spoke of

working the year the do and the are changes took a another made as announced In the year well effect we year, January of to decided volumes. X%. last As hopefully of flattish we changes we took Jim that think said, our be as other another we And despite year, changes that impacting to X% continued as roughly lot X, up the middle volumes for just effect the of to on we over last that X%. as rationalizations, this just year those business course going for slightly Jim another as intermodal through of X, of said, we on XXXX, we impacted round October that, of grew

through this been going now. time for have We some

seen can probably trying Clearly, actually customers competing lanes what of achieve. better think are a from in have some of job them. You some we reports our agree serving are who we the we with to where we do

We into from, are a lower are and past hub-and-spoke. doing really said, we doing We and so season as great the at Christmas I well. this fall cost. got We peak had traditional away

And that made we crazy down we in that with so so a business the ways lifting are improving and still the all stuff the We but and were doing that have that segment not that have go, previously progress we driving profitability are switching pleased got the been and done. the of is to far substantially we area.

Brandon Oglenski

that, Appreciate Okay. Mark in I here. one and if can sneak just

think I would headcount would be year. expect attrition natural you that mentioned this Frank with down

for you around that us? can So some put context

Frank Lonegro

Yes.

to maintain assets. certainly assets So service better and less people couple have Better those on those. things a come of And then G&A attrition opportunities, as one. we that service the railroad. Less less side, on take obviously we requires folks the to from will run

a X% going total think As thinking our to attrition perspective. you we are to about from about levels, historical X% workforce

Brandon Oglenski

Thank you.

Operator

you. Thank

question with from comes Chris Citigroup. next Our Wetherbee

ask may question. You your

Chris Wetherbee

to Thanks. for OR I second. the Yes. to back come wanted a Great.

going the do What the beyond just say you I exceed the or that you a in think XXXX? sense XXXX. to business a are to target get look wanted little you out XXXX, So is potential XXXX XXXX of as

Jim Foote

it provide efficient, be the optimal the find be, whether ratio of should where that allows whether at will years operating business we now, future, highest place spot five it move to us of where in it's from is, the ratio the a quality service most right year, that levels. but the as grow should operating wherever I specific think it's that the into we terms

point magic trying to is isn't get where there a this necessarily say, am where So you to. I oh,

in what will selling, matter you are I the line in we together are will always At opinion, want doing matter and be going you matter that what for most to three and efficient least are the you what you you time, marketplace. to trying spot business the you No are at the the of efficiency We future. growth in service, the same my put find successful. the start and there if tell elements optimum the you to no search are to can in, it most normally best, of no be making, the are that,

the on of So to improvement to because continue that for And be I make make continue best the best reason any changes marketplace all that's us goal think and industry. it to one to should organization. these number and my a in continues the the in drive continuous wanting

Chris Wetherbee

I then make that And outlook. helpful. wanted It also a sure think in little what clear might or segment? rationalization on with want down maybe more chop You to the curious just That's am But kind like intermodal have you are then segment And the fair. specifically? That's Okay. you where done the wood how the on I much just in flattish you I be bit repairs. of XXXX. on guys am sounds intermodal how touch I about volumes that think to to of some process? there in is

Mark Wallace

Yes.

don't any in I Those rationalizations work don't just another round foresee intermodal of just said as we working effect to obviously do of minutes through all hope anytime with we customers on January announcements those. changes I I X a soon. are took I year. announced don't they anticipate anymore. As other ago, significant couple and this our have

service. lanes, are deliver really and can on getting we where a can the we down to manageable area really we think superior focus I where compete the network

are So focused on that. we

We driving are hard.

we as just we As the of said, going overcome rationalizations in the did XXXX, loss well. hopefully I as XXXX to in yes, are

that and And disappointed so make better. and would down volumes yes, up am were and looking bit do a if pushing I that I little maybe our I we am be

Chris Wetherbee

very I for appreciate it. much. Okay. Thanks

Operator

Thank you. The question from Landry with comes Credit Allison next Suisse.

your ask question. may You

Allison Landry

Thanks.

But the did So little sequentially. the a good guys service see job on down was surprised arrivals you really a obviously metrics overall. to I kick on-time

I think important focus on. that that's a pretty you metric

happen intermodal to there you to quarter create that that drive be? is for what So Or can improve specific the was And would volume that? thought something incremental it for the slots point the and during where growth? you that has drove where to

Jim Foote

do extremely hard on better? is that to worked metric arrivals they the originations with this on get next so train that. arrive be. not disappointed terminal. Hi, schedule We need on-time and where Both Allison. can depart How it to during The You and clearly Yes. execute. were you were them supposed at clearly that quarter

and assets we everything needs It so the route en around doest terminal experience that to arrive are needs And it get the causes event out to then, and the as the that network. that of destination be it a So an can't balanced in time. delay our terminal where on-time. it there crew to run on

at all so of execution. caused It's And the root looking it's what en failure of constantly causes route. the just

are numbers this have we mechanical hope issues? on the across river? address? can to that origins our need it there Are railroad with order issues crew Are is that to the get there there that do elements all to is there in I caused but crazy focus and get to it So, maintain been, issue, what that tell we snowstorms, on-time not the to, whacked that can focusing you fail, need need the in those in So mechanical we to engineering quarter. run most of you issues to those the systemic don't I fourth engines locomotives various where fail? Are they than you causes the that a the were way are a bunch train get arrivals recent we numbers on, address? Are balancing up. significantly certainly causes we the better and to which need of in issues

Allison Landry

Okay. that And where can point volume in maybe see of intermodal the the things is that start a this okay, improving be that if talked that should the talked watching sort the to all about, I growth metric is business to about? what guys terms incremental maybe about, of think think about you guidance you we that from

Frank Lonegro

of to X%, fix in and or this order to a the in I doing slightly in intermodal kind let grow this. yes, volume will intermodal. maybe that and year shouldn't we off work add we Well, X% again, volume growth business we incremental business, be year flat our the in when company every here, take goal railroad the intentionally because come year X% in But onto up X% of the we Mark the X%,

core of environment to for us product business. a improve overall that's So the be trying the and to good reverse intermodal

not to bad We are rid business. just of driving get off just

and in so of and the grow grow profitably improving fixing grow grow the CSX network intermodal are intermodal and consistently can franchise Mark? that We and the it and the future.

Mark Wallace

is, her CSX intensely I we on what something on arrives trip that be or Allison, to departs out about well, this focused to now when we are customers year right Canadians as rolling the terminal here the that That's his under trip is it container plan a about what compliance or plan one will train focused are commitments thing for and and going intermodal. one And When and make and committed the the trip we their think on lot their goods. our talked the experiences. deliver customer a product. scheduled that Trip and plan customers to experiences that's to we we railroading the that lot, our talked we That's have customer is did them sell in hit but measure, to is plans compliance. what are we meeting the when historically we

Allison Landry

Got it. time. the for Thank you

Operator

Thank you.

comes with Ossenbeck Your Brian JPMorgan. next from question

may You question. ask your

Brian Ossenbeck

Thanks the Good taking Hi. question. for afternoon.

as softness you a coal back quarter of for the first you outlook guidance. shaping but year. color the of year assumptions the So Can about volume embedded What imagine have you last of that that's that for did point. the XXXX what up, want said the the basically and at quarter? know for us terms in some thermal half spoken You I of in met? going thermal year go of first to pricing, reasonably this range specifically on think well to and you the Do see that's as to to export would pretty good mix I And moderates? give back how some market I the thinking had are is the XXXX?

Mark Wallace

Sure.

that think company done. second year ever highest XXXX, export has was it this coal the So I

million around tons. Somewhere XX

in low-XXs our have locked is our we the XXX%. team already XX% similar performance up get changed. expect XXXX. that We about contracts XXXX. coal I Hopefully working met, But a XX% and of our That hard the of we are to XX% is for XXXX, match hasn't export to should are thermal. mix that to able say in

So and like there going to benchmarks go. bounced are environment benchmarks a is where in and are we a the around crazy very forward see XXXX. good where demand the curve. knows that's It Who

not I assumptions to I can for reasonable XXXX will year. as We long And plan happen port, exactly have coal very think, export are going ground a said, get which as we we the of I reasonable. in we the think made again, but coal and to are get sure good our the what's have as it out

Brian Ossenbeck

XX% to just is Thanks Is of can versus this more that? And Mark. context a [indiscernible]. A one, any follow-up on that The clearly some last different around volume spoken cycle that you contracts, benchmark? that. as in put for the tied

Jim Foote

Yes.

So it don't specifics to I want them some of benchmarks. the sorry. our into tied was are contracts, various XX%, to but go of the

year. we XX% et up et time and is than the significantly at cetera, goes down, collars, were cetera. last this But higher So where pricing

and signed year, So this good the up started we there. we terms really contracts in have were time low year of last

lock our soon. just contracts the these So demand to that want and a up of that's reflection customers

So we are that. very happy with

Brian Ossenbeck

clear, Okay. performing? or And commitments volume be those are just are actually some then

Jim Foote

Correct. Yes.

Brian Ossenbeck

Okay. lot. Thanks Great. All right. a

Operator

Thank you.

with question Stephens. next Your comes from Justin Long

question. So you your ask may

Justin Long

good afternoon. and Thanks

your initial you know looks the to hard XXXX? predict. sale to like expectation versus on in And Can for have with wanted equipment, those you reductions on have ask then have any the referenced also locomotives. year about what XXXX if seen what your on this expectation share and it's thoughts just you for online year. in gains if is, you you But I the us So, curious cars reduction numbers? this

Frank Lonegro

it's Justin, Frank. Hi

the of terms quarter-by-quarter in XXXX have as mentioned expect real XXXX. We his real good Jim remarks, on pipeline But choppiness good perhaps have still XXXX. we some for an should good did estate, XXXX, a as extremely as In in estate. not you

XXXX sales sales. operating favorability. some gain have were sales, in and did line gain unusual the had conversions on lease income Those drove have that impact. the On both we a to impacts line It's that cash little line

terms will be have XXXX, a In do cash we of operating couple accretive lines necessarily accretive. sales the income of work. not They but in

In question, run terms both of and your of great XXXX a had equipment in terms in in cars. we of engines yes, terms

don't that. we be to that's going you better achievement drive of service that a targets as to specific around continue elements railroad, equipment and will will have a profitable service our levels see We depending continue term railroad railroad, on to and less of lot improves run service on the things, see efficient to We and volume But XXXX. more and Obviously in the dependent continue come onboard. of continue growth. sustainable a volumes safer should us a in long

Justin Long

that. at Great. Okay. it I for will leave the time. Thanks

Operator

Thank you.

question comes Reustle with from Matt Our next Goldman Sachs.

question. may your ask You

Matt Reustle

Yes. Thanks on business. question. for my the intermodal taking One

Is this the to growth in past business? look a expect growing rates to we XXXX, like? normalized growth fastest and get normalized those be you in expect should you segment rationalization rates to you the the those As what would return that

Jim Foote

profitability be X%, again, better off the all demand. that too we depends it state XXXX, economy, grew At on would so so. very, hope the We in took of It X%.

But more, if at all it in couple grow certainly, favor. the should A at healthy profitability. have healthy, clip. a your not better You points be working of above hopefully, it things should GDP

Matt Reustle

Great. And That's then just helpful. one more.

three that down it you Or you of driving trending are a CapEx? should XXXX terms the any expect budget, in to major generate Are billion What's the more? get you target? the $X.X like In spending CapEx we Are trend? step pulling target. to you ultimately forward more seems above year as

Frank Lonegro

world. We that perspective, all we a hurricane the you did may off. the makes get and involved projects that ourselves the give we we got look that of We to not good some wanted especially side we to question. care PTC. some could that may wanted the as XXXX or projects that range return come to had And operating business. on locomotives. the certain a as commercial couple pull done improve flexibility side, have high XXXX maintenance the some From a it had In across Jim forward. safety to of as XXXX, obviously in stuff did take fruition, gave then damage and had help of we an at to on there both possible. look a side acceleration things on sense Yes, in quickly

positive to We of finish hopefully spending up are in most XXXX. train the control going and

to to going at see So be then But we ought XXXX. year into element least as a little get down bit every of is step again, different. we that

to We at are flow. free going cash the look

to opportunities returns the at look those generate on to going are We projects.

out So XXXX. XXXX into we will give further guidance much get we you as

Matt Reustle

Okay. questions. Great. the for Thanks

Operator

Thank you.

with Our Scott Group Research. Wolfe next comes question from

your may question. ask You

Scott Group

Good afternoon guys. Thanks. Hi.

can good on maybe to wanted little just XXXX? maybe of And equity One, us things. color for lower, I quarterly couple rate what's ask you small a earnings little a a line? some I other said that revenue bit you you Frank, give guidance for So line run but then think

Frank Lonegro

Yes.

So let's do your earnings equity first. one

probably end a benefit somewhere your This million I good the quarter in plug to $XX total. year think in you in if million million was shape. you $XX $XX will in XXXX, in

think to about I amount, roughly see are you that think as XXXX. same going you

to be run rate tad a revenue, the from was million. number I a did say perspective. other of lower $XXX terms In yes, year This going it's

million of liquidated $XX have damages. We

give the little you $XX will that back back to and a run get little out right bit number, a lower the bit a more there. one on rate going I be if you quarterly you then and million So off out then take your but not run rate neighborhood. am in

Scott Group

still I And what where optimal got to Okay. understand operating out about, grow. exactly your then can the point have Helpful. you ratio you Jim is figure

we go, optimal changes, reason So a OR mid-XXs? OR still we more as some ready the about there in there the headcount, a not couldn't point seen the but yet. talking mid-XXs at that you I impact to there's why the number, optimal network in intermodal Could obviously full a future? be mean give haven't be is OR are the to

Jim Foote

positioned need said, anywhere it where don't Well, where the we And we today. we are fix that come crazy we far we industry we we and can't find opportunity. every sure, as opportunity I make get. near when we after in think no we reason can today when the in we Scott. And up as after to are that world it single you are railroad this know where that stuff sounds opportunity There's at look day,

it's we mid-XXs The best someday inconceivable quest that is places happen. something as possibly the that as get business. is might we But not to so in not can is it's grow be that quest. like So efficient can the

Scott Group

sense. Makes

guys. Okay. the time you Thank for

Operator

Thank you.

Merrill America comes Ken question with of from Lynch. next Our Bank Hoexter

may You ask your question.

Ken Hoexter

Jim, Hi team, the OR. Mark, Frank and congrats on

you Jim, economic not seeing are weakness. Just, noted you

the a Any to thoughts pricing X% shift a want just second. just Intermodal for inside dig on growth. that slipped loser Is from that about environment? I So truck to X.X% in pricing intermodal? mix? Is from at

Jim Foote

time peak tight tight. the driver to and Well, And have pricing long the they markets electronic reporting. for at intermodal the was going been situation were into season a clearly the due

a that out. for took it to So while work

So I has declined. the truck clearly, spot market in of think pricing, terms that the

said our have in we spot that chase I case, before, don't market. as Now,

and make able Our a guarantee they contracts, buy they their investments, is customers, term. grow partners our with longer a intermodal arrangement order of commitments, they service, intermodal they the containers, franchise term people things provide we more partnership of a to in us. our our We make much channel with arrangements longer to be do a lot with

sort that up, God, oh like, this is look not is thing. it's So of that my at up,

that of of in So recent pricing. the terms is the marketplace more view

said understand changes customers, from what the the to economy to every look growth, the we I in of economy talk is. possible auto and where indicator every move especially try which technicians. U.S. our parts segment we they in to the And and touch intermodal seeing economic economy as at my are could I or In in and remarks, we earlier would overall terms that economy limit say, prohibit of intermodal

in And so good feel economy. have and we what's believe on sense a for going very that the we

impact trade, of business. that talking al must on we However not run that we about around rate, on but months, have last news way Brexit, government are with only you when what's customers, us, swirling solid our over a everybody couple turbulence, headline about the tariffs, interest to talk going everybody, of the these things the

and those we where all capital facilities and the ball going and place our really intermodal back expanding not XXXX. on necessarily Everybody, try few being what's making business, investments determine be So on to look and merchandise a are and none go in same they about go we very months the of building pulled XXXX deeper are on were are in going are to into And but XXXX we we back. to who customers, have we their long business crystal projects and side side still optimistic the the us we the of customers ago. business, back the over the term and

the that very of good dramatically truck price. me and price. whoever viewed transportation just as we feel right the we product railroad, now our a into or sitting not improving based decides, just sell the with go go commodity, lowest that I we And marketplace on service with fact gives will So a we that's the are customer with quality especially the are will here are I about where given

the back coming we We providing dynamics because that's have moved now truck a business of them rail changing service to are that the on from with we and changes get starting and historically that valuable made. are

Ken Hoexter

helpful. It's

Jim Foote

time I as railroad the a said, in be a good to So time. it's it's And great business.

Ken Hoexter

just pricing of a It deceleration intermodal. just appreciate in the follow-up. ask it. see quick I let to odd Yes. me seemed But

of the impacts always Any better, other guess, have the ones carriers You gets seen start I peers industry service Class that that? precision on seen to work the railroading you seen adopting on we service everybody. if for you of Have or side. about mentioned two a the talk You final the as better interchange? into the guess or big have I I lot impacts launching it's

Jim Foote

I Well, a the better, are reiterate, first, railroads I network. extent yes. would run the mean to yes, that we all

or any better, issues better days everybody like something companies. gets down, slowed attributed Clearly, that snow Chicago be, But to say, it's there I due model. and yes. of kind yes, week, day that individual interchange am somebody of in experiencing of would nothing the for running changing we business unusual. everybody's that, if their So unaware couple of the let's are here to

Mark Wallace

Ken. Hi

to QX. be Just alleviate your issue concerned. to respect some intermodal the maybe of in Don't with concerns

see You respect little going bit lane We have are there. to the impact did always of rationalizations. in some to a with noise

We on much don't rates are private is good some by not have the effect, side. renewals channel really Most intermodal spot of pricing multi-year. seeing the business an XX% really And partners the our from and our market of impacted spot too contracts experiencing market. asset are of

what's We going to bit been have I about spot There concerned of we point market. a really has little it industry seen there the kinds don't this in talk Nobody softening, the think are happen recently knows. too time. about are to of but in all at

Ken Hoexter

the for I Thanks time. guys. Thanks, the follow-up. appreciate

Operator

you. Thank

with Ben from comes question Baird. Hartford W. next Our Robert

You may ask your question.

Ben Hartford

XXXX Thanks. the for just Yes. to The target XX%. was OR on target Frank, clarify now. XXXX previous

assume So normalized. that sort of some does

some to not gains does number, are degree, right? about ex-gains include talked That's gains in complete You you choppiness that talking here that XXXX. a and That about? XX%

Frank Lonegro

Yes.

is is So sub-XX% it's for Jim number. and obviously a that message the XXXX sending reported

would So include it yes, real of gains. some estate level

Ben Hartford

schedule good. the And does expire? repurchase when then That's authorization, the Okay. share

Frank Lonegro

be this prior the certainly, had year we call. opens. make doesn't are and We remarks. mentioned in later have been Jim that connection a exhausted the Normally, program It sure in early, the which would announcing an window we structure his capability have market to wanted little expiration. we capital conversation bit it on the But authority it why to the in in is the when the with

Ben Hartford

time. the for Thanks Perfect. Okay.

Operator

you. Thank

Our with RBC. next Spracklin Walter question from comes

You may ask your question.

Walter Spracklin

Yes. OR one question I got volumes. on on very the one much. Thanks and question

I of contemplated say tons improvement. innings, PI XXXX I in something XXXX, I from OR you lot down guess basis getting going Am going forward, per XXX upwards I am in basis points. first Is now trajectory but significantly. XXX future the slow more I go, early you per block am points far, year just I will at now, I to of come tackle reading and the that? that almost OR, opportunity a point you XXX still to right are now significant going year executed point the XXX on when was room to and far it's point hearing the really XX% getting the Am On indication basis am of right? this think that's we hearing for and there? here, that that there's basis CSX, on a that Jim, a service with it of that

Jim Foote

this doing it with get that think me, to it you be for the doing this a you probably been said, greatest been harder. a have have us. after be down I yes, point years. phenomenal, by further and because some take you than can following I a becomes all the Walter, time with CN considered have long and started longer been to out are XX Well, and of time road, still anybody, for because recognized year CP as And as they

year, and beating better we below saying we XX% get of XX%. are are a next going We them off to are

back clearly taking and am sitting just and we pretty pretty not that So harder. comfortable it confident are just easy. I It gets

of yes, the at this let's say, don't eye XXX I anybody basis And and you look points another take year. can out square this level so think in the current

Walter Spracklin

Right.

you when -- So do

Jim Foote

is It it up growing

Walter Spracklin

and iterations, driver, a prior driver gain then And it CP. much be it used But into rail Jim, PSR then mentioned a used to competitor. as be or there. successfully traction, have incident it PSR very CN from has been where turned cost gain to and share, truck, you from in your revenue you prior And could used

growth? this can flat guiding PSR inflection, way it the really it growth an and are and to you players slightly year. done where kind and use do other volume see When up You turn drive around revenue PSR have really take of the you

Jim Foote

growth than opinion will much all from of Well, adopted that years it cost point historically many the I in so average on an the this, company a the of XX, it's reduction is reliable, on and become on is and becomes say, as a some becomes the it quality years It for that's more as efficiently to because go, get service pivot of you this times oh, start my more, not of put oh, to possible, a better evolutionary a of have above like and time people more said my it June process we see you to and in for railroad continue to we it. getting as time, because growth. are all point was. time in opinion XXXX focus Again, reason sudden when years, sudden run your business improves you trains can that to as you the put to some they quality customers that service going and

evolutionary have to of benefits recognize we, seen the this like who us the process. what yes, first a customers long So starting everyone in and it's Mark And time. that transformation an here and for that's I are now the actually time

are of going say, And it. sudden all we okay, so we to is are XX.X% to continue That to going grow. mean doesn't

that lower. improve that customer. we the the company, year, get the the the continue it to each every the any going quality but of not to profitability it to No, going improves improves and the to of of again, continue network to We we are believe are service can efficiency

So it's CP. initiative will improvement has an at as continuous and it ongoing that as here hopefully on go now long CN

Walter Spracklin

insight, the Jim. for Thanks Excellent.

Operator

you. Thank

Your from with comes Sanford question next David Vernon Bernstein.

your You may question. ask

David Vernon

the ask just Hi. I then follow-up taking CapEx. quick time. the want to a guys. regulatory a Thanks Good question on on Jim, afternoon for and

back? fees there First, from any industry risk fees, is give seeing those can to some you for the sense And poking timetable out? around Is of any for to the a accessorial do maybe called see you that play expected that review? how STB us

Jim Foote

to issues, years. amount been I the railroads none and with for things, think whether And is just years the in kind demurrage a years of don't out books and kind transportation. stamp. detail. have and to it's They about of industry we these that have know of any practices formal these new. These that there's are of it. things or time great Chairman any provided know responded I reached more wants process the and And of on

and says, XXXX with governed issue. tariffs. sign So and have majority tariff been And it The privately when services remember public any vast I contract since these will be or we and there's a you when also contracts are are to think don't have customer negotiated vast, that deregulated our situations. of you we our were a by

a it's agreed the business to So very, and already have customers very that fair the small percentage as not just. being of

David Vernon

open is formal to docket been case there for been or that's that's So them opened [indiscernible]? no

Jim Foote

or in something article just on. like like something I No. the what's that, on that Again, check out. I was at. this the she to going of those well, magazine Chairman me She She think job. and public maybe doing said, her is media you or tell one reporting heard wherever, trains it going an going read that am she nefarious And were said, they know

David Vernon

Maybe Matt other Rose with day. that the interview

Second is --?

Jim Foote

say didn't I that.

David Vernon

would standpoint But not commitment perspective Not you and back industry question I your Baltimore one, thing the coming life. what welcome talk sure you for to stuff project. guys? some little whether from come about ragged I from follow-up, a comment. the a have capital if you that one like planning kind life maybe that on and a back that to that and tunnel the read as want about Could bit of or be to CapEx to looks a that obviously but comment on

Jim Foote

hundreds I about you and it ago, Well, out I a ago the tunnel, dollars what's because year participate just out went time Maryland on and city went just millions I why met under said would tunnel is, look going with a of we well, we will maybe Hunter this these give the at all this spending with there And out of figure went I about a a for to of some and not out year are delegation remember project. what in me said, ago, the year had Baltimore.

did, at long lower believe at level are if on being, again Maryland went would said million. said, we And for back so committed $XX we participate, it that to. but around at have return been we such before the economics and that a had a than studied And to it. Christmas previously there sufficient there's CSX, us The We time. investment put delegation, looked I a we level to looked lower and it. in justification to The for be we just

$XX at. figure that than did find that's funding think funding they pleased as best to difference. I and the city said Maryland viewed other I mechanisms Baltimore opinion, participate to to had The what find maybe less we said going would do work or in were and if my million we to we could is and Maryland so the to that think, a goes delegation, what can. out like tremendous state forward. project we it's trying as was the then previously they are if It up with are And we we trying can this of mechanisms, other they we make of and them opportunity participate

David Vernon

like or right? anything that, But data no hard

Frank Lonegro

number capital Howard Jim talked and XXXX Street the in the nothing that There's relating to I about Tunnel.

David Vernon

All right. Thanks very much guys.

Operator

with Majors question Susquehanna. comes next from Your Bascome

You your may ask question.

Bascome Majors

with my in have in This team operating on I the might And it Ed and senior Officer? be sounds you you curious, taking of bench may results longer And Jim, the and been structure when changed the with for one thoughts the Thanks Yes. responsibility term, your the railroad could there like was since producing? those regions. happy under people more that structure new just a you you permanent then. or are question Chief summer here. strength more regional may to either some discuss it's the name turnover Operating a Thanks.

Jim Foote

Yes.

decisions and with, the the down to Ed runs better comfortable We experience our line structure are I the structured and railroad at accountability railroad way. supervisors comfortable way CN, are driving It's line that with the happy, that with is and supervisors am the to the responsibility the we I day-to-day because front make the structure. that very is a with, that's comfortable we think,

continue will we But seeing. are to it. refine we what exactly that's far, So

call in the fly get the it. tell We okay run it, decisions get take order At the on to employees off. least me, in day. somebody decisions Jacksonville railroad and they better make and they the will a make if to don't because to make have up as ask to They each they every it's continue switch and improve to engine phone like pick and to

head naming a let's of don't people become terms timeframe. that Ed human with on specific we our plan I are as to In important someone for it quick possible. forward along say would that, guess working get are the But Board something do it's going to, and a up in there I and Board, come and to because I have somebody resource to too, rash. of not we the as department, with rush the call operating

we I that, person, We person asked that's person And help him look internally to find people that talent can that responsibilities then they best. me probably train come choose role. if into and our great lot help will here But, changed there. elsewhere. of one the with all of that assessing appropriate, are and can so up there's nothing of me got Ed's and when we step a was be And to work that that that

it You year, know get this will maybe know. I done we don't

Bascome Majors

Thank you.

Operator

you. Thank

from Our with Stanley. next comes Morgan Ravi Shanker question

You may question. your ask

Ravi Shanker

evening Thanks. Good everyone.

the both? just growth? the side? say follow-up growth volume up on a you intermodal slightly to flat Did Or volume on guidance. Or overall one Just

Jim Foote

is then We What of about make volume, and with X%. up this announced we great. if was are If And implemented October flat, that we that in even that's the are we better. look rationalizations on slightly would I to said lane ones year that January that's up. that X another we

Ravi Shanker

revenue and other intermodal your you mix mix maybe because Great. surcharge just guys at It an of I much sounds which digit price doesn't growth terms assuming some even Can at growth, get single full comment. look you in fuel or X% like year leave for for low that's adjust you revenue components, if I volume there, help if am unpack room volume least the headwind. guidance

tell just are for expecting you you in can growth what XXXX? us So of overall terms volume

Jim Foote

like the that comments volume it, that we again intermodal don't growth year. hope XXXX this did said Mark again, we took if will being is, off in side any of And as for he on here than, anecdotally that achieve because able is related the to to volume see I his growth think gave he we Mark czar grow again the other marketing success, flat. X% volume we will he flat,

is XXXX. to number digit in single growth low in the so revenue And relation

Frank Lonegro

got And moderating. remember, fuel you Ravi, price

that not then the are question fuel around get line, this you going And supplemental I year. Scott's you think you heard So to surcharge answer, uptick saw down. the coming me as that's

more help side you and the got might digit volume from So, what the imply. low have that pricing than single

Ravi Shanker

something they a that Got there's a to disruption able couple significant do they volumes? think path, as that the your way, going price result comes are just do rails that as potentially given and service right it have Okay. your one of alluded you and are willing the U.S. And there on that of over you that regional see it. down and volume a and margin to of earlier, take follow-up, focus PSR just competitor. which is as I left If was are

Jim Foote

what to saying trying business. grow are improving are over and That's the we over for open keep know And business and business. we we we can with And you the Listen, here. price grow margins.

Frank Lonegro

they good we of We equipment, people, road, to go. have over, ample capacity, bring we When line to are want ready. it are

Ravi Shanker

you. Thank Great.

Operator

Securities. Cherilyn with from last our TD you. question Thank Radbourne And comes

ask You your may question.

Cherilyn Radbourne

of wanted us level to if you to would ask, safety afternoon. am idea into ties just in give like you the goals, Thanks areas wondering I your very terms how that I some back cost and much. Good the equation? high improvement of see where in of could a XXXX

Jim Foote

injuries FRA and FRA are reportable personal the pretty clear. Well, goals accident.

complete have have everybody in From put dollar door anybody So what to there's are perspective, ambiguity and is, personal since to a in of trying I transparency amount the I My I savings hurt injury. ever want do. a here get we on here and goal don't terms they cost here. told no walked

standpoint, personal down come numbers, have injury see a at least improved from that will you so and dramatically. And our

corner my that's incidents like hurt. those those that every car the In every and accidents got there's where where down, motivation. huge a one derail, those, that. have necessarily if the derails reportable save it On of number one get wow, could in the wrong we not opinion, kick again, opinion, FRA car down can we could my of we sole the money accident/derailments, something or track we amount or means somebody But huge. we one of Every the of

have we be a that that stop stop answer there number. doing things. so we can that But got could would it there improve wrecking have side, to And if pot your big and got on of accident we to money question, directly

Ravi Shanker

all me. from you. Thank That's

Jim Foote

Thanks Great. so much. Kevin?

Kevin Boone

Yes.

done. I joining for Thank think are the you we everybody call.

question, reach please have you any If out.

Operator

Thank This today's you does conclude teleconference. today's participation your for in call.

You may disconnect line. your

CSX (CSX) 17 Jan 192018 Q4 Earnings call transcript