CSX (CSX) 17 Oct 192019 Q3 Earnings call transcript

Company Profile

Participants

Bill Slater	Chief Investor Relations Officer
Jim Foote	President and CEO
Kevin Boone	EVP and CFO
Mark Wallace	EVP, Sales and Marketing
Chris Wetherbee	Citigroup
Allison Landry	Credit Suisse
Tom Wadewitz	UBS
Ken Hoexter	Bank of America Merrill Lynch
Amit Mehrotra	Deutsche Bank
Brandon Oglenski	Barclays
Brian Ossenbeck	JPMorgan
Scott Group	Wolfe Research
Ben Hartford	Baird
Justin Long	Stephens
Jordan Alliger	Goldman Sachs
Fadi Chamoun	BMO Capital Markets
Ravi Shanker	Morgan Stanley
Bascome Majors	Susquehanna
David Vernon	Bernstein
Walter Spracklin	RBC Capital Markets

Call transcript

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Operator

Good afternoon, ladies and gentlemen, and welcome to the CSX Corporation Third Quarter 2019 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 conducting a question-and-answer session. [Operator Instructions]

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

Bill Slater

Thank everyone. good and you, afternoon,

and on Executive Wallace, our by on Executive Boone, Sales two Chief me today’s is and is forward-looking slide of Kevin Foote, Joining our Jamie Operations Officer; Boychuk, slide call and Marketing; followed Officer; President non-GAAP Vice Executive President Mark three. Financial President Vice disclosure of disclosure, Jim Chief On

President introduce to Chief pleasure my is it that, Jim Officer, and Foote. With Executive

Jim Foote

Good afternoon thank and you Bill.

own Before we quarter. Class I'd job record for like an operating customer for ratio congratulate that first in railroad strong easy low to again great They I with XX,XXX safest, CSX begin in the are best the a most good their focused presentation, all-time U.S. XX.X% the and task. Breaking was they over really of no operators shown the delivering a workforce industry.

to off hats So all them. of

leadership the to of who Operations. executive to a and Officer to in team. played President mention Vice I’d to transformation roles Kevin are are company's skilled Executive and Jamie and this Jamie beginning big Financial appointment announcements several Both additions also Chief Boone have of Boychuk like recent excellent leaders with Kevin our

Jamie, will better. is the CSX of I'm the very both Harris lucky drive our even two get pleased in to that part remain and of key Ed we a to Ed best executive team business. hard have operators as

add on grow top recently Vice deep intensely of builds Vice the Energy. has new been changes creative to President Senior value also knowledge and Longson Arthur team as first Marketing new The ways customers appointments sales with Mark to President joined market demonstrates and commitment that in this our long-term a working is the as capitalizing on and of customers, profitable then recent announced which our is Vice never focused valuable a to service good. Adam will Merchandise find commodity CSX to President, of as Adam's and drive addition. as Sales marketing of line. to Bezar our merchandise Adams Farrukh identifying We opportunities growth.

time the opportunities. the it's to Now harvest

turn beginning financial our let's five that, with slide to results. With presentation in

The are items, Kevin with a few only third quarter will which results out. straightforward unique point

Third X% quarter versus EPS increased $X.XX year's $X.XX. of last figure to

ratio improved to operating quarter as record XXX new third points a Our I basis by of XX.X%. said

is industrial freight. Turning the trust to continue driving economy services softer to slide with six, as volumes Despite our CSX the held merchandise their volumes of share improved customers flat. merchandise industry-leading greater

in strength billion. the revenue However, merchandise declines a was decline total X% $X other in coal, resulting in and in by offset intermodal, revenue to

franchise approximately I'm of industry up volumes. volumes the encouraged the merchandise it not explosion been a the had versus June, performance by refinery end Philadelphia for X% at of the been have would quarter for merchandise declining

implemented merchandise X% of on an rationalizations last as total, early a volumes, XX%, fall Intermodal increased declined headwinds. revenue were lower this X% declined revenue partially pricing of impact offset year. In mixed gains much this with by associated -- and flat lane volumes

round of year. X% left of beginning now lane have the We next final first at rationalizations the of rationalizations

lower lower and with benchmark both due weaker declines XX%, markets prices. demand export prices volumes lower X% decreased revenue in and to and Coal a domestic gas export natural

and driven in lower by intermodal Finally, revenue charges. the decrease primarily demurrage facilities storage other at revenues was

I'm positive with our to slide the momentum performance. on pleased seven, in Moving safety continued

lowest improved accidents and Our and records record we train best in rate. accident for injury to last further the train both rate industry again accident FRA results was company the set the quarter's FRA personal new fewer

and as are problems the as constantly can as to are small helping execution safe before inspection track big strive -- automated make help We our and cars opportunities have We still to railroad also Technologies issues increased to improving it of network. identify the such across drones be. improve. they day-to-day use the become

year-over-year. Moving slightly increased the metric eight, improved to see for to but quarter, slide let's we this opportunities quickly and both operating improve performance. our Dwell going review Velocity forward. sequentially

another set gallon the impact Class also fuel significant. Not this cost, fuel record. CSX gross We thousand only per efficiency operate to the only below does is is this of reduce road environmental I miles. one U.S. of but ton

a been train operating had historically partially This the and fuel separations. been enhances technology improves and has team. which locomotives use deployed power of throughout which by the not allows reliability enabled the distributed This focus which to train increased efficiency safety disperse has CSX reducing of us by

the over XXX. distributed with we but we operate XX trains averaged power day, frequently quarter, For per

On most better we focus on as our service are railroad, running better creating slide nine, we importantly, for customers. a

trip both individualized to providing carload merchandise XX% trip and of new pinning We're records plan intermodal plan customers about will and continue improve be are merchandise We containers from These tools trip very tool. figures cars the differentiates for of that the quarter. targets, real-time compliance information again their to intermodal out hourly both other not tracking with our quarterly rolling new CSX and rails customers excited to fourth and customers customers intermodal plan in XX% our

financials. who take Kevin to over it hand you the will now I'll through

Kevin Boone

Thank you, Jim.

team. to want for this I'm excited to started their continue Before with and thank Board I Jim support and the great work confidence. I get

Turning summary XX, I'll through the income the you of statement. to slide walk highlights

of all in of well across really X% As as as declined third performance. intermodal down gains X% year-over-year, recoveries coal and Jim Expenses nearly mentioned, the pricing benefit great revenue and headwinds, a other than quarter more markets. revenue lower total fuel the impact as the was offset

the and business. sustained across expense to continues progress team company quarter areas drive in Overall, of third The reflect results significant all asset our improvements, operating a efficiency efficiency. labor

net line totaling the related $XX a These impacted headwind of and million I couple $XX including in terminal want items two items, fuel $XX intermodal to sale Before tax MS&O items of respectively. running to fuel the million a and note million to matters. through expense agreement related expense unique quarter, a impairment an state

$XX saw this quarter, $XX estate year-over-year. increase Real in million an gains million of

real of of pipeline opportunities with though uneven estate from a Labor down impact see transactions the to and average year-to-year. lower and X% continue headcount remain were will We X%. quarter-to-quarter expenses trends these

active and we an crude continues X% drive train refinement operating released measured respectively utilization of employee. miles operate Seeing and by starts fewer employee coal down year-over-year savings from ton active base ongoing our XX% enabling gross also the engine to and plan a and in per crude as Our train XX% a and X% driving improvement efficiently. in as reduction overtime more engine

quarter overtime through strong a across area management overtime call is efficiency by execution and operating As reduced all departments, focus all operating nearly I second across sequentially. mentioned on XX% departments workforce the we

XX% reduction workforce. was count fleet with in year-over-year The fewer in mechanical the locomotive drive combined active an quarter. online our and cars X% helped smaller efficiencies the Additionally repair year-over-year freight down car

Also while to operating on-time train velocity to cost speed improved to and dwell sequentially improve and deliver on-time additional further arrivals originations opportunity which quarter-over-quarter, and -- Jamie confident continue team remain are savings.

XX% prior and to improved or forecast million operations to driven efficiency volumes. related by and year expense MS&O savings versus lower the $XX

and active continue maintenance to driving locomotive count, materials attributable efficiencies We locomotives in lower to cost. see savings

quarter. train Freight car by fewer significantly the repair in lower cost accidents also driven was

quarter In the and engineering travel, to outside on intensely services. on focused vehicles driving addition efficiency. led materials, This significant we're third savings in

drove expenses, also were down year-over-year and million refinements plan train Fuel XX% expense savings down quarter. which or in in $XX year-over-year. continued crude XX% the repositioning travel was Our

These volume. savings were driven gallon the by decrease and efficiency per in lower a XX% price, record

software combined energy on management utilization and quarter distributed another drove compliance with fuel power efficiency. of focus record Our rules handing train of

was there tax unfavorable earlier, to million a matters had noted state the also know impact related item an I As quarter. unique the that $XX on fuel

of net increased asset base. other the to impact at Looking larger due Depreciation expenses. X%

years. assets of depreciation Going quarter, that related million increase expect to three the depreciation forward, approximately on in we a occurs study every group-life sequential mainly to $XX fourth equipment

Whilst previous other the over the sales XX% rents increased of of efficiency no cash asset flow. gains. and This as remaining the assets. the of this benefit Equipment inflation related is free expense items volume has with and more offset life than impact of are lower impact obviously cost associated amortized

As due in earnings $X we affiliates. should earnings at our per reduced see increased well further quarter net we million improved higher days load, and to the improvement. Equity

Income related to benefits Looking below primarily to average balances. of due debt XXXX $XX higher settling increased increased expense million, of tax interest tax expense the the matters. line, cycling to state due primarily

delivered XX.X% nearly operating Absent XXXX, approximately $X.X unique quarter items, highlighted CSX of rate we his out in would environment. volume expect Jim an going with in forward. billion effective the P&L, of remarks, line opening despite weaker as third in income the tax of Closing

third earnings $X.XX, quarter XXX per ratio of XX.X% – representing delivered X% an improvement a over a points operating also basis improvement of share and We record XXXX. of XX.X%,

continue to our Turning Year-to-date, to of $XX is X% XX, the track year-over-year. core capital cash million operations. to down on in train flow the slide safe or invest provide equation infrastructure investment side and reliable we

Overall, of our enabled level last reliability. the PTC of spending us down compromising to investment significantly sustain intensity also levels two reduced has The capital lower in has asset safety or without years. come

growth. $X.X quarter. produced focus while free remains flow improvement a flow Growth the for including in cash to in core Free improvements capital flow working cash generation increase this adjusted efficiency cash in third through better CSX's drove cash a differentiated flow operating free XX% driving has capital operating team, generating billion

X.X approximately Dividend in we $X.XX X% X.X and from nearly in dividends. billion to in $X.XX in XXX to the share of net count. including increase buybacks quarter this we shareholders, announced payments February Year-to-date, returned year, the share lower million reflect a have billion per

it closing to With back turn that, Jim his let me for remarks.

Jim Foote

you, Great. Kevin. Thank

this economy of Turning reflect Freight the XX, underlying adjusted the generally the our year. in when changed we set reviewing of is what softer quarter then. Nothing wrap economic last expectations we at activity. forecast for with since has out in outlook line by really to up felt a our view realistic end industrial to was slide demand the let's

we from swing flow. of a course our to X% are plus operating operating on year and a for Despite maintaining guidance in to to X% environment ratio X% are are cash full we still XX% impressive These record environment, the X% down accomplishments. below growth

We changed our years, and the operates our two also not we the approach CSX company business way how over last in fundamentally but have just customers. the

innovative and needs. new are customers' encouraged serve are our best meaningful we are to more and We efficiently improved by still the the to ways we America. of better to service to still North move run made their operate date, tirelessly find railroad goal response significant as – Despite being are positive opportunities reliably in progress to working our there our towards

turn back and you Bill. Thank I'll to it

Bill Slater

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

Operator

you. Thank

first our with comes And We session. from Chris Research. question Wetherbee will conducting now be a question-and-answer Citi

line open. is Your

Chris Wetherbee

afternoon if think guess progress Thanks, the start sub-XX near-term Maybe the in on highlighted Great. we obviously, on when spite of OR, meaningful you that about table. declines. of are outlook; good you maybe efficiency you guys. opportunities significant again yet here other go target can the and beyond the the and still I volume

we operating operating is of or which business want more the you're more XXXX, this going hopefully I putting about how head start little has for to stable sense a guiding ratio maybe volume less if bit XXXX, thinking about can guess to may just bit what things, the about to maybe and ratio think you be your returned thinking thinking like, into volume How a get XXXX of outlook. world and more about little on look

Jim Foote

I all Chris. only but then is what going we'll in into to general start like. just or trying ramp comments. to two XXXX Mark quarter get and first be Well, may not some fourth guess we're guidance with just going general to additional We'll to and either here just XXXX give as want of the yet. look comments Kevin jump two commentary, then to Hi up

economy difficult difficult the gauge going. It's is very, still very where to overall

so have call I a out outlook for to we're fourth look the to thought we and going the going see revenue think like to the fourth was figuring we feel very to start what for -- soft to quarter confident we as pretty is next year. going or what confident wait forward

then company continue this grow can But the as on we to we're to our it. can that is extent And going focus this secondly, we're to do and this business we them. run efficiently to again generally plan is to speaking, and going possibly as our plan grow business to

year. So are the We're – this we mutually exclusive. and not is what both we've do they this not to same going can a at been time showing that's do

Chris Wetherbee

very That's helpful. Okay.

these along lines. follow-up you If a sort me quick allow of

You sizing the changes for some sort Can forward. little potentially positions big and some move of you as talk you made move a them of the CSX trying that get within opportunities like some future Just put forward of the to a of you you opportunity some to merchandise? of business what and opportunity seems that about sales the of bit merchandise for XXXX the see sense around maybe beyond? as you we see

Mark Wallace

Mark. It's We've quite been this time is new. is about something, now. Chris. for this Sure some This not talking

As we the business we merchandise in two-third look business. our this at of segment, opportunity see future its huge our of

think I Kevin quarter as of two Marketing. Head you back put the going when initially know the we

people he We Kevin some because there have did were initially did externally CSX Department highlighted traditional a internally. term bringing great our in that we of Marketing the going a job both in that fact grow department. marketing and to was not one, short

things focusing on differently growth. Looking at and some

moved Strategy going Directors. as into VP Head Marketing as with and he's now to and sales lot some We've of of the out additions a so carry marketing we Senior on split Farrukh of our roles the from Department, over

Some people hats. dual-headed to wear used

Marketing. we've Now in got Directors of we’ve Farrukh of got Sales Directors and Group

to that is there. renewing we're for at And an year. capture in -- out marketing of There opening we look our and market and North conversion his transportation merchandise the on so truck a intense on focus the every truck segment the share. lot believe spend And as by on sector. opportunities going American Clearly looking the opportunity focus that said for the that go in volume merchandise the size remarks, of Jim we

a focus us by started. excited for forward we're So pretty huge going already that's work and been the

Chris Wetherbee

it. very Thanks appreciate it. Got much the I for time.

Operator

Landry comes Credit next with our question And Allison Suisse. from

is line open. Your

Allison Landry

bit export Thanks. benchmarks. they ask the based; I to about quarter. sequentially is Good have afternoon. the expected held Good would have job little than hour to up coal on the I better yield wanted during seem the a given

quarter the about So maybe we the on thinking you and saw if second segment what could to then you maybe if and the you compare about just comment within be quarter and QX? talk should mix could the trends how that in

Jim Foote

Let the Allison. mix, get mix We me the highlight question.

business if there many, that as and you overall, issues overall usual ups But of can see and negative as commodities and always between a address me And business quarter. different let And So that I within holds you see coal want. talked segment continue the this mix we coal we most times get into about and as quarter-over-quarter. many our experienced each within again RPUs. was to in downs we'll mix these segments

some And the delivering falls on to a clearly I focused we on haul mix any for given we're business don't sustainable did utilities a and coal. have manage business Lot don't long-term the on mix coal how solve -- quarter north. But growth. the was to that negative side, we of in in shorter

also the to the less some so quarter Alabama, were the by haul growth mobile to saw had and growth was we mines second some and -- think in in as shorter we and going volumes that export a the I impacted phenomenal export benchmarks. growth

I issues up said So, haul haul going of business. in but in given coal picked utility of the the lot we overall decline in then a each mix longer some commodities, of in just and exports, again the shorter some as

phenomenon continued. So that

Allison Landry

have and the just thoughts the any you given do Okay. And that? quarter look one back Perfect. on for QX benchmark

Jim Foote

but fact, some business in with obviously, met is prices. steel markets the of I industrial which slowdown The tell sourcing continue the issues of was I'll export to two-thirds global QX, benchmark weaken say again Well, Europe the and export, that you. would our the in the soft, coal. side,

contracts know As the our of re-price majority quarterly. you

of QX impact there's impacted and be going the in because today in were they QX and price, as strong. less QX So the QX. relatively to we But were by we RPU price $XXX, clearly the given about into were in are export some benchmarks QX where with in where moved

Allison Landry

Perfect.

you. thank Okay,

Operator

Wadewitz question comes Todd UBS. from next with The

is open. line Your

Tom Wadewitz

getting an kind reduced Yeah, the of savings on for Kevin wanted $XX opportunity the annual some basis, Is give lot I a of quickly, it of you much cost could on in Tom. like great. rate a initiatives, if wanted million? it which is a third of that have ballpark you're to on traction from large ask and you of it us good sounds quarter? see basis overtime for would how that on It’s I you to afternoon. is maybe just that overtime. run kind Is ballpark captured perhaps the how pretty

Jim Foote

Yeah.

millions executed digits, We the of million have we dollars engineering it’s of on real single T&E the and it’s but tens employees field. not again mechanical specific, across that

So began of -- all talk quarter large the the where forward going opportunity focus and more that we've just come to on I'm volumes started some it's as efforts a in the this -- for and we've down could still we started second Jamie saw to we item. sure us probably late

Kevin Boone

Yeah.

-- on the seen as going good side, opportunities So time on really is spends there have transportation, engineering team field opportunity seen in still the traction we we some what out where we look forward. one out continuing the on but see and that's mechanical visiting obviously, attraction of our of left and the to larger some is there the table bigger that's for and that that opportunities one locations the out table

Kevin Boone

over opportunity percent many size, times, significant were pretty But to in I there. the categories XX% trade back Tom of previously so going think plus still the time I is of the the mentioned magnitude as

Tom Wadewitz

something benefits little that model is than Was going else, and in X% incentive lower were comp Was I worker year-over-year. about Okay. that in per comp the a we of related we that question something terms expected, then guess a function or something bit down that in a quarter there worker per of the primarily cost. in fourth on And lower to quarter overtime? should lower

Jim Foote

I it you would right. say with combination got think I

You know certainly played in overtime a that. factor

some as going trend here incentive continue well. forward. You slightly good year-over-year did comp see We'll lower the on --

Tom Wadewitz

Okay, great. Thanks quarter. for the and time good

Jim Foote

Tom. Thanks

Operator

Thank you. Lynch. Bank Merrill Hoexter The of of next call comes Ken from America

line is open. Your

Ken Hoexter

on anything Good thoughts Jim mentioned operating just of but you may has to if the and see bit you there -- that maybe on fertilizers ratio. solid little specific is the coal, that you your you kind a there get down, in that out? if in market look Great anything congrats a nothing more great. in be is step taking shifting your as Hey metals, a outlook, view alters afternoon changed see. particular out look

Jim Foote

No.

and to All business a turn it have to-date at the was to seemed softer a some and they're external a going them a is my there this of and ago, it's going to personal -- stabilize going the get is couple of It opinion turnaround more there up for is, to in sense took if round, to somewhat are for for turn -- these of them lower while these take try XX days metrics metrics while than while where going to optimism numbers numbers. maybe get not there them sense and to back sense weeks.

be get to end the pathway this more the opine quarter kind environment in -- better end shown of on to and this it. So a have beyond will light we on the we little see throughout the see of year a can growth hopefully, nearer as of the year And slow we

Ken Hoexter

going I of taking something a sub-XX, guess follow-up or rate three happen you in up is or to is run fourth then, just keeping for appreciate the not out down a quarters high indicating easy fourth you of somewhat you even the margin not you're XX. for the since indicating yet sub-XX Are going being given as any boogie? to hard in number quarter with or you're which just quarter it step are -- OR I sub-XX XX your sticking are that. reason my And

Jim Foote

XX you Ken I When an ago we in was couple were get said that’s to a hear say, -- XXXX, in boy we're didn't going New about York we question. easy XX of

get to but to early economy the and going put and we of overall know said not we'd our not our in plan, beat a of only onetime. in the target we're year softening globally U.S. you clearly our in yes, business kind impacting So kind target this units all of had our one

told being growth. are of we're cautious? kind economy we're So see think we even we realistic coming in three the of have we viewpoint hockey a of the being into year the to-date the had we half we second ago everybody months I No, stick same of terms that – when

we the kinds have, similar traditionally you what the this also of expect And on quarter perspective, fourth a side year. cost is seasonality know from behavior we

better that, think to We I -- just we good below is than annual difficult going as putting a this an a achievement that ratio we’re pretty to time. that's assumption we do. have So a say operating realistic XX but always hope do year in

Ken Hoexter

This in at XX. already and year, three quarters you're

in it I like expected normal. I insight. But fourth Thanks, Jim. appreciate seems -- you deterioration just beyond the didn’t that So a were quarter you sending if know signal

Jim Foote

right. All

Operator

comes with Bank. The question Deutsche Mehrotra next Amit from

line is Your open.

Amit Mehrotra

or the wanted ratio capital supposed business By down ability is way high on with company's Kevin appointments, maintain to operating operator. and and intensive revenue decrementals Jamie environment, and I grow a about the to new theoretically the question profits a well incrementals the with business. be congrats just in this to ask because shockingly deserved. Thanks

efficiency So, on the you because I'm this in to on just looking and trying slide. that time to the cost – have understand side, you forward one put the how way decided much extra looking

on profits So, be down? and you challenging in I'm is room hold the a continues the environment where basis on revenue grow on to trying there efficiency or profits year-over-year how continue to much cost going just an side that's to to or line allow understand, to

Jim Foote

clarifications, had the question can so answer I Well, correctly. I

the ago before in exact used slide in and I about used exact slide that’s quarter our what slide of is talking the think that think of operating that. efficiency we're months ratio the three we terms I terms we and

Amit Mehrotra

think there? you we’re improve. and I efficient efficiencies you remaining mistaken, added here, improvement I'm picking mean, another significant regarding opportunities further further to added not I’m but I unless think bullet Well, and service

Jim Foote

said, to better look us – get get opportunity to Well, to better hell to get a lot economic of a there there’s bit more and be It we're we out environment. will easier I number with better continue always believe lot a to trying of for robust a little better.

So continue we're always on the us and I other road to focus the there don't efficiency many believe in possibly think to best going can, opportunities. different that we ever are to many, terms running And and for to that. we said in that's continue opportunities than anything do comments out of I’ve there in before

identify might more don't has be really find, always better. opportunities bold where believe We've the I there always we think us anything But get out for a execute Yeah, there are in and could we've difficult changed. thought tons of to that, to been little always optimistic company and take and there on. positions our we

Amit Mehrotra

just the -- So you know Jim, be understand improvement cost revenues I'm the are do if as question, side, the could you about this you year, XX look XXXX, trying talking the just on to to see months, would over XXXX? but in would to revenues out this opportunity -- be follow-up not year-on-year you I see down you given could you're next you think flat conceptually next -- as

Jim Foote

now that can X% to started revenues have operating with be year said job revenues with us think view much fantastic thinking of in I as team as going do solid the to as as be of of quarter, and the the my much -- we for down the short as again something revenues, Well, this the repeat or delivered XX end did this nothing saying you that you are some they give this could at more amazing. was X% comments, up, aspirationally year we're again operating and I know we'll ratio

I again hope terms am going to to book into same try putting we three kind And I the year. our next we're this bold to and that so, thing certainly going challenge -- in months accept forecast of group but that's saying statement. do make to before wait of the

Amit Mehrotra

especially my your pricing fair. is pricing second and because of moderate lot income for it's can the you talk goes proxy for revenue of, environment. I on what harder that environment, environment. I can there when should be Yes it a extrapolate into is that question other perfect that’s just -- get that's a and about for it overall to very stuff just of mix. per comments adjusted kind a is would into But per metric look know at pricing we just helpful. pricing kind we it making see to the But RTM RTM, and continues that and not revenue volume to Any proxy there When

Jim Foote

here, significant for price be me the because growth pricing and me I for But I volume. mean, that for address volume Yes, price get we're the I when revenue the us on talked let to out I mix, let a on won't clearly repeat question impact price this sacrificing told and has clear not what I used or about again. crystal

and up merchandise have exceeded QX in the sales and all Intermodal, same-store was the pricing. strongest in within seen our quarter, past same-store for sales that contracts we we our years pricing the three And renewal our that the in come

read product. But these into of that going a generate to it's business that we're we don't the revenue pricing the and value So to and the always value provide. the to still the it to of continuing you're mix RTM issues. of price for to the then issue. RPU We're see continue price service our -- to best -- again, but the And going for price and value

Amit Mehrotra

Thanks helpful. great very That’s Okay. the results. congrats Appreciate guys and on it.

Jim Foote

Thanks.

Operator

from from Barclays. Oglenski next Brandon comes The question

Your line open. is

Brandon Oglenski

Good Kevin and afternoon deserved. everyone congrats well Jamie, and

glossy maybe gotten schedule presentations more investors think and maybe some really here just really clarify, thought common maybe competitors So of the more on your already. to to that, Jim is precision focused 'PSR' I on go nothing have CSX that has

still that. to with with guys we So that roughly when the a context you go give help this Should in think we cost headcount of line? there's I down growth into have or line that to can more side you a sticking with maybe are that back this, can I thinking on environment in be you guess more level us you growth? cost how lot scale to new on

Jim Foote

Well working we're where I floating. What that, we're for services here we and opportunity are that out leverage But organization. enormous doing to can. we yes good appearance enter whenever can, we're amount is looking environment don’t this we're doing have every of don’t building we're responding yes a we we softer into especially operating what is, making directly. an mean, And

So potential we to when world created additional on we we capital the because in, to we on a has we and the times the to today and the the amount many up the organization that opportunity with leverage begin into begins the could railroad going we amount adding a of we're true side. the run tons the see run we way a way same turn environment because going one uptick is probably work without said capital freed side, for and to the have in – XX% and us better operating impact tremendous to a not around company tremendous see capacity – of slight any growth of economy we're today

expenses. start on capacity on put incrementally We have railroad where the and lot of today we not trains can a that adding got our existing growth to

to strong a direction think well either from perspective, perspective or environment a both I either an so perform environment. in cash soft a and well-positioned we’re operating in And

Brandon Oglenski

Appreciate one. Jim. it I’ll keep to

Jim Foote

Thank you.

Operator

Ossenbeck next with is from The question JPMorgan. Brian

line open. Your is

Brian Ossenbeck

question. Good evening. Thanks the taking for

received of the one the terms industry some – is It extra visibility, service, larger maybe just thinking conversion, on some smaller truck of follow-up what sense how a of are some conversions Mark, tools, what to chunks of some you the better when those First of even shippers start better bigger how has at capacity. in food -- wanted and scale? make seems can the to you increased you to

Jim Foote

my be sitting blessed, today work he’s have we're day. work blessed Ed done after today, deserves us this Jamie grow Brian say, sell, we're would every and has and the give we their to it last is this teams X.X seeing think truck and tap opportunities exciting. really is has the past my go in we’ll the never over and been at into today team to I’m the to conversion the and franchise product to table that team done. ability the it now able seeing service Jamie years that the that I and that

customers things the shippers so be day And those but truck business our rail volumes segments, and the using abandoned of we're we're of across kind now, are who in today. they couple service and being to, that and but because been we're those customers the we're rails seeing seeing decades ever I've last -- we're that experienced that that talking successful. of the across from it board we're day merchandising and talk to used about over penetrating We're poor large truck those since, and markets conversions right may talking existing out, shipped seeing incremental by to or to

customers. They on And side, on our mentioned this tell huge for our October you also visibility, for I ship a ago and trip see lane see they CSX the a customers out his This on we our huge, now is plans said December a couple compliance can that plan Xst performance and in this every in intermodal our game Jim CSX. customers as excited. trip we're weeks out ship technology customer forum and plan in will rolled trip They against opening, every merchandise X changer them. in will on changer engagement are we for game we is roll compliance the car

other So, great this. with we've has blessed team got We're we’ve to service is operating no got that the doing worked us. the into service, that to their railroad visibility hard great very deliver

And and identify the so them opportunities with been it's to have us over that past out right new placed and convert here go now the for those week. teams

Brian Ossenbeck

– I Is line you a the for the run current of down rate this year? Mark. Thanks continues to this Kevin appreciate revenue you mentioned there. the in the you merge maybe the for the rest storage. the quick expect on the that reasons all details for housekeeping

emerge think goes as new through are being shippers models dismissed states in was… you the it sort are different been if do the it's operating part you is what think And general the comps just higher been you rolled to as of out think that do just with wondering, out U.S., of or eventually the back some structurally issue storage than where figure

Jim Foote

Yeah I come of think that in -- was look I kind think as trended down we expected told you direction. to it it

and rate so probably new normal quarter the here. $XXX we is million going between somewhere range the quarter unless where run rate terms In dramatically changes probably will the to $XXX forward is third end and the from something second million run of

think from talk you I at to rates. this opportunities, something I know let here meaningfully Mark we expected the -- changing it's now might probably run additional same the you know, look without but

Brian Ossenbeck

Okay, thanks.

Operator

question from Scott comes Wolfe Research. next with The Group

open. line Your is

Scott Group

Hey thanks. Afternoon guys.

And So a OR you business question can this in but with I or another can you a year reduction ultimately mid-XXs maybe Do not from to confidence ask bit more want longer XX revenue? do does -- productivity mid-single-digit then revenue the term, think if to down here? little five directly. growing give next closer you that you're more you it run headcount

Kevin Boone

cost Kevin. know quarter. well. numbers headcount is report I lot know, we of focus every you XX% costs headcount as there represents know, go of I to the There's this roughly on Look, Labor our been other base. a has Scott, out

You know, those. at looking we're

line MS&O item huge us. cost in saw you for think I improvement is a which great

huge reduce about There's huge, other reductions time, us. that ways it's than talked to for category headcount over a we pure costs

volumes So that, you headcount. if than be to challenging, new the we're But for there's after drive look to getting ways if a know simply -- just -- other costs for us continue of lot we'll down. areas go to

down down run You significantly, these drop -- and and after the out faster the to know goes go way assets costs. cost look we take out, go every at dwell we'll so

Scott Group

the OR more broadly? In

Jim Foote

get We said that the to improve have good on year when in continue again efficiency said, as Scott, started done a bad environment going opportunities a side, efficiency in and not we – Sorry. we the know, to XXXX, it. think and we into on to you we're we've environment, we've we improve would

but could, produce. the hard no, think limit to there's people no you ingenuity and we've know what world we work shown there's already can that Some didn't

Scott Group

on a And busy Jim Okay. lawsuits proposals be months just That's case three crews, the lay and and just, one rate with crews, or from as fair. proposals any on us X% broadly you in it's some DC Washington just you just may the been this board it? concern, as just see give other of the guys one-man the a on land maybe color your DC in from other you’d proposals thought real lawsuit see and

Jim Foote

know thoughts I let you would my DC. now going are Washington in on what want mic real about to bet open what's and on

I’ll stepping some that through change, after and modify that they they have a care in being way to stick long are The shippers lingering of have procedural around put of not been taking going times if is for kicked have think years there up I to time, just just some doing for their some on So go simplify, suggestions, turns, like they with long job number there forward issues is complaints. which and have staffed, really been of STB STB. and what's a and that a fully out you're steps the

thoughts similarly what begin course at a and as And the of trying in about work least all about, long-term revenue does I think be it's process. discussions they industry on might that’s want have and what to through to we think we'll rest I some that adequacy due the have industry well to talk of

regular, just with is of in work think in due work STB a business to that regulator just that's industry course. in – work the back kind and I So being an

going So there. I'm freaked out about not anything that's in out

a now new the just to everybody starts begin about and bargaining industry-wide to themselves litigation out process over starting trying comments And right – the of and position. your long we're round get labor negotiations, posture in starting we’re

nothing so And normal course of again there. business out of the

usual we'll not I to remain think absolutely nascent to to. it's So that area. said have I’d continue DC, unless I just in active vigilant I and there business to But go as try and

Scott Group

Thanks time guys. for your

Operator

The from next question Hartford with comes Baird. Ben

open. is line Your

Ben Hartford

on looking good just from projects guys. have evening improvement progress maybe but XXXX perspective into Jamie, operations on into was some core an view, Good you on velocity ops were It the XX specific train perspective. Any flat. your that hours maybe XXXX horizon the from hour’s an think really side. dual you XX talk fact the months on I that through do you Thanks. in of next view? changed see how point particularly mean, us progressing can

Jim Foote

providing for controlling doing operating on completely services Ben. sure. for Thanks providing mentioned, costs, best focused and as only safely. service question Yeah but the not Mark it is best the The team

assess fantastic that close to quarters, the and moves into over heading months, to make that out able to of out continue years next we of we guys to work last conditions making the we there. sure has been in the team developed enough as getting So few railroaders market really there and and a need the nimble with are operating couple we're

service side they're network point operating opportunity one we team the kind look spreading want the there marketing can expense ground they we to of to But work be. with we're to being on now getting continue isn't of particularly be we bring while given continue to best of the to couple my out spent center most there is the traveling those to a at metrics towards need the taking making our with is drop wings -- field, past quarters team the is and continue just sure and with have that the and every guys And those in and comes performing and guys. this big -- dwell a ultimately going network of now into continue my your on product where that few sell dwell of again working the providing where those there, costs along wanted those and is to team that we work the with of years the to leading to costs? -- we out of really lot next the of work out here I've that

Ben Hartford

iterative notable projects is mid-horizon from the to kind forward? this going Any on here or be of

Jim Foote

out we mentioned trip there of lot as -- a some getting out can ground move the to two with flying down to terminals. there and St. team respect sat unannounced, taking minimum reduce cars how Last getting with I weeks week made came quicker operating trying into up different Look on of a with out and over the headcount. faster -- every few Louis a every ideas is we projects

our well have are So out me cushion we to sufficient, as continue to with going we and and Brian we’re sorry we're and to forward The we're Frulla drive talent internal finding we traveling talent there -- Bob the the that’s going with asset. external to really Senior do those President's within opportunities and company are quick forward. have continue what can Vice Barr moving as push and

Operator

Stephens, Long line with Justin your is open.

Justin Long

like, once may and to intermodal the to And lap any be of curious around could the peak you changed in Thanks Jim, But and on your that expectations normalized more rationalization the numbers what's what on last could haven't get congrats really just season the comment on things in thoughts the view to you're and all you equation? relative quarter. expecting updated quarter. start mentioned retail environment XXXX? look industrial see side and volumes your we

Jim Foote

-- there sure, throughout it all. the what year again struggling interest the fact everything with it's one was of issues we've And is that market, the Justin. stock it's Yes whether been are year -- the economy whether we're economy, and we all the of early the was well very in sides so performing separating consumer-driven that was already very at not and it's saw whether the well doing rates, industrial

I who last had as the where know a it's let of so question. a – other And we proving I not are – of were any going out have going whether was we to half. I'll and and Intermodal move this top confusing, what things quarter said on when through good we answer that you Mark peak With pretty totally sense second think or will is

Mark Wallace

year. are for muted peak this Justin, somewhat yes mean expectations I our

a is of we'll recall peak bit the mean well. is sort see coming consumer little the the not doing relatively think and stock a bump, I I so traditional -- of still solid still but in

to but we a the the plastic coming carry whole and auto and – in, Christmas machinery more lot coming trees in than stuffs So, that economy, stuff are into the parts of still other stuff. industrial toys of bunch and all that carries goes – apparel, as stuff the just and lot of intermodal kind know

weak being volumes. economy the IDP soft economy the affected of of so a industrial and intermodal lot being yes the because So

have Fourth post-Thanksgiving and of economy relatively stuff. so lot we online, the the a with stuff quarter into the of the pleasure holiday and because hopefully Christmas have consumer moving that because to of economy, of good a we're order and peak frame hoping people the along time honor

well. intermodal that depends I on you will but there, So solid all said quarter, into very we're volumes the economy but expect I to this what's and guidance our we not going and rationalizations help do this lot where good would give to we think all going are, a next get but longer-term through a of all intermodal these in driving through get really it year, lane mess as we economy

Justin Long

just perspective rate. follow-up sales And the we quick quarter relative expecting great. should run then Kevin. there what what XXXX? sale on you're we to in be about a early on maybe looking any half for saw step-up in gains in Gains talk on at quarterly was fourth as on a from Could you first read and Okay, what

Kevin Boone

would mid-XXs, I we go is transactions predict – I'd quarter. always Mark still know a see but off hold hit, really on in below $XX bit you've quarter expect million a XXs rate in the more mean, the historically. for that fourth well those to We'll when good will continue low normalized range was to Yeah, the range forward. I fourth on we'll on normal the to little difficult timing the run and above pipeline something pipeline through great the have that seen XXXX something his going team wait

Justin Long

great. I’ll time. Thanks Okay, leave for the it that.

Operator

with your Goldman Alliger Jordan is line Sachs, open.

Jordan Alliger

Yeah. Hi.

or domestic curious business I but Lanes thereabouts? team just when international question, tough on quick order of of look marketing real and intermodal, intermodal, both you be a it little may because a weakness give you of can color those at versus relative the pieces magnitude the of I'm Just the know of Thanks.

Jim Foote

intermodal so ago, business I stronger – this lot spot I very by five clearly, average, of capacity new the year talked one above I has trucks come year, come domestic drivers a than the of domestic came capacity think new clearly the down. of has a have – domestic have international a in year business, into from that we them, economy impacted tight truck has of just of the prices been obviously sort competing there Our prices lot prices year, number still a and business the are truck a additional but since that been minute the truck of certainly been with last lot lot capacity, saw is think clearly open-up factors down capacity but as of about market so last

relatively So I still while business soft, good, just international is think it's been the but okay. domestic our business

Jordan Alliger

Just a real follow-up. quick

perspective, for domestic do just Just you have or for versus the intermodal? of the what revenue in a carloads is sense proportion total international

Jim Foote

XX/XX. about It's XX/XX. Yes. It's about

Jordan Alliger

much. very Thanks

Operator

Chamoun. is from question Fadi Next

Kevin Boone

I useful so is it's a XX%, say actually Fadi? answer future. always in Who the

Jim Foote

your phone take maybe -- on you’re of Sorry, mute.

Operator

And ready next for correct? the question, you’re

Kevin Boone

Yes please.

question. Next

Operator

Capital Fadi Markets. Chamoun BMO with

is line open. Your

Fadi Chamoun

is There you. and a of noise thank Okay, feedback. lot

Kevin Boone

Sorry Fadi.

Fadi Chamoun

of the how you think as intermodal? as term a over intensity potential you strategy run the to don't to opportunity there to accelerate efficient. mean the reinvest if about follow-up that's is service given in just growth OR have less a tend correct apologize your I'm I obviously conversation, highly And getting is me product wrong, one, you but network and to that, maybe better grow Is do far a needed truck this capital kind I lot on or medium intermodal, intermodal a the business.

Mark Wallace

over Mark. grow Well not of Fadi, the so its decade over successful. past dollars or This a spent to capital very company and was volumes lot year it has intermodal this

reengineering year that And the little traditional years we the spent have today and was intermodal past the half, franchise hub-and-spoke while. last over so, two built

your spend don't need and franchise. don't grow intermodal believe So I to think any to significant we question, to believe I continue we to answer capital no, that our dollars

about The of team's out the focus right touches system. taking now is

up go down. container, have on profitability you and As you know, and goes intermodal cost handle more the your the touch

right We've business as possible additional focused will as bringing streamlining around the without we're to intermodal will getting on spending So and now the volumes when capacity. move capacity have come in any ample economy and to Jim's efficient on we then it return when turn now additional capital do grow back, got to product. that intermodal capacity point, that ample and and volumes

Fadi Chamoun

follow-up the also down intermodal rates if truck XX just load months, in slightly a rates, flat or And contract previous so can next grow on the environment? in still contract Okay. question, stay you the domestic

Jim Foote

The up majority Fadi. business is of in contracts, our locked long-term intermodal

opportunities any short-term business. have replace So, to we lot of a the don't

a I cost a efficient back the are has the as the side the handling economy we -- focus way. side. efficiency business grow lot mean, on more it comes handle of again business intermodal yeah, But been So and clearly and in more can the way, we'll we and that

Fadi Chamoun

Okay. Thank you.

Operator

Shanker with comes Stanley. question The next from Ravi Morgan

open. line is Your

Ravi Shanker

evening Thanks. everyone. Good

something said Is of you I in lanes, that are lane along the this XXXX one clarification. in think more intermodal leftover rationalization a implying? lines start you the rationalization Just clarify At just from exactly what a of can call X% the Is this bit? or Jim little XXXX? you what

Mark Wallace

Ravi, its Mark.

the of and additional the clear be took then here. rationalized out Last an we X% we X% year in October, October X% facts last just Let did lanes year we another additional of franchise. about X%. of everybody so of -- the the has me all began January XXXX, this and January of rationalization Xst

the doing to be in year took X% be rationalization last in rationalization quarter, the -- earlier the comment, fourth will we will lanes will and then we so -- And Jim's in lapping this. completely that be we January

Ravi Shanker

it. Got

XXXX? more in no So, rationalization

Mark Wallace

No.

Ravi Shanker

just next export into coal and color And reset follow-up, quarter. Okay. the quarterly the for on the pricing a as thanks

not said contracts have of or in your impact did think gain thing any have export quarterly kind coal you have business pays you annual the certain of you're in renew. the a in that about until a and -- is on I more that past guys XQ? Is the that cadence take or same to talking extent

Jim Foote

on the met the on Both on the and thermal side. Ravi side both –

We in have minimums. built contract

I So with it think as coal weakness in in mentioned going contract globally we changed we're APIX the the everything has on volumes was and export saw QX minimums I given the shipping to thermal customer slowdown benchmarks. and given that in weakness experiencing their it not in coal, continued

even that sort million say expect coal for and million tons, year. come hit on, hasn't of still we ton with to between volumes we expect XX did be million million everything we something Last about export up, our the million will I going year. range that's still XX the XX but to to this XX XX year

Kevin Boone

just the Ravi we to any in quarter. clarify didn't damages And have liquidated third

Jim Foote

Correct.

Ravi Shanker

Understood.

You articulated of minimum in volume much did the than better I shipped. terms

So minimum Mark are talking that of just at reset? not current I year to XXXX, next would would once stay lower know if XX levels to guys the kind but be the you expect levels, shipment about you benchmark

Jim Foote

and my clue I completely have a headwind a a – night knees don't predict happen don’t pray, but have – I going clue what's clearly clue have don't yeah it's to and only to export what's the that met on what's to economy I hey, to things out could of benchmarks APIX’s So I to every happen hands I get now. a to my If going benchmarks and going – – control happen are right and

Ravi Shanker

both That's me so and much. Thank you understandable. Mark. You

Jim Foote

Great.

Operator

Majors line Bascome your Group, Susquehanna is with Financial open.

Bascome Majors

capital you organization the you. in seat, the the for you're that could then your management and now CFO Thank can three years next priorities over won't? it be finance Kevin, what what definitely Hey. And two, sheet deployment. firmly change share balance

Kevin Boone

Thank priority cash. My is question. you the for

where we team and lot lot we and everywhere, can new across like is again a just see make we to look about we and and a talking and time focus the there think capital. people day all sometimes we're I that last sit when right was and add it's overtime. sharing whether at those I over have think time opportunities OE mentioned prioritized other of is spend There look in lot there opportunities, closer across our efficient. is and small there overtime each up initiative the week that ability dollars information with that and the he is I now opportunities uncover organization, I to to And Jamie a opportunities from a it about capital we buckets finance, working my every closer to talking was more of

projects can high that nothing there really in cash projects But lot suppliers overtime months. is group been finding -plus a invest I'm in is doing we're we out me if great focused our on that's we working really of cost business can where come my know of capital flow them. drive not investing business But invest love with savings on to my has a return job in Procurement additional with really also the I priority afraid that's is at area, today. we few particularly from of forward. generated the value and next our better that I XX% the than return my just return with there looking organization wouldn't to that going

Bascome Majors

you congrats. Thank and

Operator

open. your line Bernstein, David Vernon from is

David Vernon

time. taking for the Hey, guys. Thanks

So a Mark little differently. question I coal wanted export to the ask you bit

how now of right that hedged from that has kind XQ, the think you tonnage has you what moved see did any are were on to or If retained of in the still the wondering just you weakness XQ of just decrease in any that year? guys of and we kind or about exports, moving getting percentage prices sort rates increase guys to earlier you

Mark Wallace

the last last the those for benchmark benchmarks annual year. so on higher at beginning was were contracts and these a late negotiated that this and into they’re – to thermal they – they or for late there side, tied of Well, set, contracts weren't lot so early again the year XXXX, year were APIX year the our

them quarterly $XXX-ish $XXX, of heading side met And over QX. are the I re-priced QX into as that get monthly, On said some of but prices the to was benchmark going they and impact majority that QX as we're are them fell said so most quarterly. in I feel almost

David Vernon

from that up this to see in to be going showing Or is Did we XQ XQ? XQ?

Mark Wallace

it saw and QX as we the well. volumes We on it in No. volumes thermal saw on in -- in

David Vernon

the rate there, right? in not But

Mark Wallace

the just we next It’s we year. into of process fourth of lag it where more yes, the in just process the quarter beginning because go and and of as the see will

Kevin Boone

The range was set.

play. For thermal, the rates were set and really volume been it's a

David Vernon

you Coast you're business? on terms And can Okay. the into business, a coming between crude give sense Bakken and maybe us flow just East kind us for what for right idea the the like give petroleum is what now running of, the in crude products shipments mostly some this about is of the splits origination NGLs and on --

Jim Foote

from the Yes, obviously per has because the others want I had much the listening, refinery the speak today as as as want I crude Bakken. mostly probably year. it's some but there don't impacted we've to moving and specifically go. to which we're with slowdown remainder of seen too We've But are explosion

-- this these he's different very commodities longer to guy We is I on us. a to portfolios Adam of business look a interesting job with at he and He's things task mention for great term. both very, all manage, new coal are these at Clearly, accrued smart brought doing VP and but taken and looking us should help figuring is Energy. all fresh and the of our on we who in Adam,

So, that. look on future the forward updating in everyone to

David Vernon

on versus the crude NGL? Any split

Jim Foote

don't No, I to want now. give right not

Operator

Walter Spracklin today last Capital Markets. RBC comes question with from The

open. is line Your

Walter Spracklin

much. currently you here. investing would are maybe to and that squeezing for towards implementing. there reference looking so How railroads significantly a for say you better might thanks in know question you technologies. is Thanks much innovations I Yeah, is some the of technological made at Jim, or one those me Kevin. in least there

capital these what's more your if devote dollars your this of Is to more projects. strategy adding yourselves for look what How it of to works CapEx there? technological technological is And incremental innovation others to it envelope call see then to pure you see current it it dedicated develop your let's we'll much or innovation type opportunities? dollars envelope would and to

Jim Foote

spent what of the it asking industry holding amount Walter, In come them today historically to out many answer total try differently, at amount, question. CSX of currently respects, small we to What and we speaking, rail being is very we’re with new a I'll to is hi, a ideas a for new do. now, thanks but has Right on meaningful the no the technology. the yes up bunch questions. all. impact supplier

we we changing do effectively work things the time, about is things now to what for efficiently talk we clearly new how with work rail opportunities doesn't as and and more and think what collaboratively leverage so us. works I in industry amongst more can all do way technology ourselves the technology and the and

will that spend on clearly, where probably never spent more efficiently help that railroad what the should, it's going So it will it's bigger, us therefore it's we and become run probably get equal that to to rail. dollar technology number amount but on one we probably the to point

So three locomotives and intelligence efficiently, I out effectively railroad, amount, artificial running technology along the help rail that's constant more do to mean available that got cars just whatever things of and to else. we're and there doing the these we are just everything little over everything -- out it's whether there using of automated technology help more subsystem this our inspection dispatching, and in and us not all do BXC more us

We've reducing in we this would breakage have then big of we we because orders weren't much. slow or of a our doing improvement all our as captioned rail earlier seen when incidents

could value it what have a happened. up break, before there happen that had found dollar that as add rail year and can it's the with leveraging as to out next a next more next we're going So associated on of and next derailment can to heck if you that a hard much railcar we're you year big because put knew it year have year, of you we and a and if

I we're So, that creep up time. all would over over will to be to in that say to We're it it. continue going and do

Walter Spracklin

desk those technologies? Jim's you way out anything there hasn't the of that crossed way seen out, disruptive maybe hit and really or anything park ball of in horizon conceptual it type if of the of might implemented is yet there on some terms the have here at Looking could Jamie is

Jim Foote

only top footage we inspection X-ray we're got thorough on looking within Walter, are track. I development I We're of we that CSX, the I've technology only the of train the and industry. mention portals. impressive camera of think the the a that really very strong take that vision are seen at most would lot also by inspection Not making department one probably of sure cars IT we've thing to on in portals, a but on

hours some I believe been something that that's developing for to intelligence going to really as that XX need that project, working be, be. on a Almost hours they crews where we've The intelligence, make in in XX look intelligence. about us art allow need are advance year they now. up truly are crew We to to to crew where sure position our is done it lined to and

us worry So and help as on as intelligence we to our got crew some really at much availability that forward. is intelligence is and CSX going balanced you art working the about carry here to team still of railroad, that the

Walter Spracklin

time. Appreciate the

Operator

I Thank you. turn over will to call the speakers. back the

Bill Slater

everyone you for today. call Thank for that joining. our I believe concludes

Operator

today's you concludes teleconference. This may today's And for your disconnect in Thank call. participation lines. your you

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