NSC - Earnings call transcript Q1 2020 | Norfolk Southern Corporation

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Operator

Greetings. And welcome to the Norfolk Southern Corporation’s First Quarter 2020 Earnings Conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

conference recorded. this reminder, a is being As It Director of my pleasure Pete Sharbel, to introduce Investor is now Relations. Thank you. Mr. Sharbel, you may begin.

Pete Sharbel

we Thank risks note reports the full that Please refer make morning, filed may differ everyone. with call, uncertainties, our and important. actual risks good of view which discussion may results. from to statements, certain as you, we a forward-looking annual and SEC subject and to uncertainties for materially during most those and today’s are Please and quarterly

slides are along presentation available Our the at Investors with norfolksouthern.com section, reconciliation. in our non-GAAP

transcript posted downloads a Additionally, and will after the be call.

my now is and CEO, Norfolk Squires. pleasure It Southern’s Chairman, President to introduce Jim

Jim Squires

Norfolk Good XXXX first quarter morning, to earnings everyone. And Southern’s welcome call.

Wheeler, Officer; Financial me George, Chief Mark Chief Operating Alan today Officer; Joining are Officer. and Shaw, Chief Mike Marketing

financial our times. these during I’d be delivering service. results, their to an are to first unprecedented for employees thank proud discuss essential we Before our dedication Norfolk employees Southern like

Brayton said, the truly In the they a video for expressed is And goods of supply with are watch essential when we I employees well short that our that feels this. right after sentiment the message Norfolk everybody to to works to now. It America employees dispatcher inspirational hope rise Misty Southern she challenge.

the each taking protect I to will are briefly pandemic, our response talk and we COVID-XX simple strong on, three in discipline. financial In the employees, we customers goals early established exercise serve our area. about steps

our to acted work took based measures safe. of extensive matter We most first employees to Our people. office remote CDC on to responsibility is employees and guidelines a our of quickly in days. protect keep We transitioned

protocols distancing rigorous to environments. jobs site, work whose we cleaning implemented require and social their on For work them established for employees

to distractions. number Our preventive pleased diligence Norfolk many I potential are through Southern kept the low. with our confirmed am the of also that working measures, safely report our the cases have COVID-XX of at employees employees combined

all whose impacted by with virus. those are lives been the Our thoughts have

and goal what excellent are Our continue customers doing. that’s exactly providing for our second an we to is service product

are making They we nimble with reliable are due their on are operations as valued collaboration service, delivering. partner. the us we the customers there Our to close them for operational adjustments impacts rapid every Coronavirus a of count adjustments day and right to and and

is position We will current goal, work call. address more market The us of implement strong made the discipline disruption. even an have putting to our has balance to done third throughout navigate exercise which the resilient financial to strategic business, a good we plan us in our this

financial results a I announcement will of XXX April everyone turn now million $XXX XXth non-cash related to the our remind of to me ongoing to Allow of disposition our charge on locomotives. for quarter. of the first

today able of plan, financials in five, can on see of will my morning. this the additional But have efficient our is are is we operate slide comments fleet This rest to and locomotives. as strategic I an with the what our adjusted to exclude excellent of to this view Thanks execution will reference provide provided charge. color. you fewer significantly our more Mark we

the for XXX quarter XX.X%. EPS last results by record upon and ratio operating the points, numbers X% These Adjusted was improved was basis $X.XX year’s respectively. adjusted and

to XX% that an urgency of context company. team’s the our this they transform Within volume achievements remarkable decline, demonstrate are

among reductions train a start third accelerated as We also others shipment crew in dwell volumes set records performance, and consistency straight excess for of declining and terminal quarter. and metrics such

locomotive around operating quarter resources the with reduced charge. excluding coupled expenses $XXX ongoing new our model, of by operating when we first non-cash million in realignment When the the

and improvements across operating and network Our consistently the our significantly team is lowering ratio. driving committed to

a stronger, our We that and by Norfolk and execute are and to more continuing resilient successfully strategic confident are control more adjust building our a within focused on Southern. plan, the profitable factors we

I will and the our results progress team the first now strategic begin executing detailing and turn over quarter Alan our to to plan. call the Alan?

Alan Shaw

Thank you, Jim, and good everyone. morning,

The gas initial mild and first franchise. on we impacts the coal February, saw our COVID-XX the of impacting quarter prices intermodal In impact weather low of with crisis, natural started the volume. international

the markets and our COVID-XX environment, prices. evolved this where market to and a into necessary. resources by of customer majority global As pandemic, a business challenging impacted plummeting volume and levels responsive flexible are we needs, operating energy adjusting our plan with declines, experienced further of changes In face

in demonstrated strategy remain over three on emphasis per per an We to and consistent ton-mile years. unit on growth revenue and focused long-term revenue last service by improvement, with our revenue customers margin superior our the

service employees to Norfolk to our while service the deliver customer to evolving the of structural in an history, best Southern respond and testament exceptional commitment product, improvements and is Our our rapidly producing requirements volumetric cost. to a

partially impacts COVID-XX, marking seven. our the Moving three decline The capacity energy and revenue all XXth offset year-over-year quarter of in growth less RPU growth. business of to by with RPU slide fuel volume excess consecutive by X%, groups, our truck lowered delivering

X%. Merchandised revenue was down

offset shutdowns energy while quarter favorable Automotive to spreads response COVID-XX. in faced As volumes. in due in car Steel volumes late demand and allowed frac increases prices, a sand X% pressure impacted oil from declined volume weak to crude the record decrease. partially by continued loads RPU, low to be plant

the driven our strong of our by some demand lower of negative product service X% RPU decline. early the propelled a COVID-XX Group. loose International declined and by impacts the truck offset of market, impacts gains volume revenue in Intermodal

the revenue volumes XX% prices winter. low both extremely Coal by were and year-over-year, down throughout driven gas natural mild

losses experienced due pricing. also franchise export slight to volume low seaborne Our

on outlook eight. slide our to Moving

prices. our energy as impacts energy volumes monitor all depth of We downturn across and of and We timing as project dependent the volume and year-over-year large economy, future combination of quarter the declines the the the on of decline markets. COVID-XX the groups upon the pandemic unprecedented business with to reopening second impact and continue in the well

customers in markets close customers with COVID-XX remaining slide changes, classifies our to necessary with place the eight their revenue economic allow decisive and sensitivity both energy. that and Norfolk Southern. by allies our on The collaboration partnering in are that chart our reactions to quick and adjustments to market short-term confidence and affect We for

The agriculture, includes demand continue and consumer food will which among ethanol, in the and likely other intermodal consumer-driven energy disruptions due supply products. which products, group high demand Lower to automotive spending decline forest and in other chain markets, remain will and and to impact prices. consumer

prices competitive manufacturing in market. will will soft and already by further low be in and declines Shutdowns with oil steel other associated automotive the dynamics Intermodal truck. the influenced drive

impacted disruptions. Natural weather demand COVID-XX gas with market. crude low adversely load will Our and declining mild be prices decreased by impact market prices and negatively coupled commercial energy utility industrial our and from will

and coal seaborne Lastly, export continue to coal pressured COVID-XX. by be will lower prices

We on collaboration constant maintain a facilitated built relationships, strong which flawless our and year. last communication, implementation PSR customer of

meet we conserve continuing resources, this customer’s to adjust our continue our as approach while network to We needs.

XXXX deep headwinds of through as customer the downturn and will significantly our relationships strength foundation economic economic product The for revenue. superior commitment, provide success the impact improve. The collaboration, service franchise, our this conditions and

economy. Our of in energy to franchise that the the and east portfolio U.S. consumer, XX% the in most from ranches markets powerful industrial over broad drive participation intermodal the

when are securing for logistic chain in leveraging normalize. supply our customers, our solutions knowledge evolving partner markets and innovate requirements, opportunities the We to deep for new with market near-term

update to I over turn Mike on an will operations. for now it

Mike Wheeler

Thank on state our you, I update the you will of Alan. operations. Today,

quarter in first increased cost our service continued even volumes. superior The story to improved structure, face of operational and declining of leading leverage the

to superior We PSR are execution. using continually principles improving our deliver operating plan and

to XX. Going slide

the with employment despite structure and tougher levels, dwell terminal and unprecedented segment. the speed milestones achieved reducing train train our load We the second driving car dwell, sensitive assets executional terminal quarterly year-over-year in further service in at improvements lower customer success these into Continued continued service trends drove and efficiency. have record These fewer cost and level comps intermodal performance, quarter.

shared on metrics prior productivity you meeting goals. our productivity and XX, in and measure slide are metrics with and have service success levels our our of onto customer productivity which These important service calls. indicators I Moving

is service XXXX. our shipment at The index and performance measures level to delivery on-time indexed the

at is we these levels goal our will confident we XXXX Our and the XXXX throughout first are quarter service year. performance maintain

year-over-year Our still lowest substantial service. record drive on productivity, T&E while stellar headcount providing

the plan will to changing levels. show next on train to business we continue As the size aggressively slide, our you I

the of towards continued the light momentum improvements, weight further train of XX our environment. in that Productivity showing despite volume current coal boost challenges in Remember plan us of in quarter. the we tons the continued first progress changes market. operating We goal this goal, our X,XXX will this top by re-targeted driven

We made that trend continued rationalizing productivity progress the of considerable in our by quarter fleet, XXXX XXXX. in a first in locomotive

the our announcement most quarter recent lower fleet active XXXX reinforces in commitment XX% of to our getting is XXXX locomotive fleet. than of our Our disposition locomotive and in the out first almost

of us management PTC progress We in you would reflect energy completion to useful increased many gallons the technology weight, our and is area to be continued focus per show year-over-year fuel This ton-mile our results use of efficiency. rationalization upgrade of also for footprint. improvements and an fronts, DC in the efforts AC the it train fleet, thought our on locomotive including increased of full of of

we goal, raised the after to we beat on the On-Line Cars bar our Finally, targets. even continue

business that better be out this were goal can count includes set clear, measurably To and new a First this quarter rebounds. brought than storage month. in earlier as record results we cars be

in reductions starts. shows Slide crew fifth of accelerated quarter our XX consecutive

We months, of improving the TOPXX phases years. completing the our Phase program. of three X program continuously This in are the instead of now are will and three anticipated plan deliver the XX

starts XX% saw crew fewer first The starts, quarter volume. showing leverage and increased between crew

rationalization. network of to our of X on traffic part plan, continue combining Phase we complete further yard the trains we in reviewing types for single and After by operating TOPXX, will all optimize

operational Before operational I COVID-XX want emphasize I shift positive momentum. Norfolk to discussing to pandemic, our Southern’s to the response

and making structural asset progress productivity are our in service drivers. levels We long-term base, changes

proactively to continue to will following progress adapting plan principles from our We the PSR XXXX, environment. operating while our economic build on

to very workforce that pandemic. make protect am in Jersey. of at work, threat like safest while to We fluid took the I part early sure of XX. also high, how the mobilize Norfolk proud very equipment, business slide our manpower and measures have the NS to surplus to employees able New very the were railroad dealt be were Turning Northern because railroaders store extra being to continue both quickly impact the was day, Southern’s zones and proactive we hot provide with levels an and of service employees

customers that the April. efforts the has even or We assist run by to service maintain goods faster in expediting short in of All and made shipments were levels railroad needed. we urgently supply special while,

from vehicles the just over trains a we quickly TOPXX you the few see in drop auto proactive very parts removed and carrying As also finished Tactically, blocks response slide to a days on our and mandated can pandemic XX, the plan. volume.

dropped almost starts enabling count as Crew volume, leverage to even preserve shipment as declined. us as quickly

will We the volume as leverage again returning redesign our way possible. operating handle rebounds, most efficient using in plan auto the to volumes operating

not yet While are to capabilities know time of we in taking improve ourselves challenge the the TOPXX plan shape an do our we recovery of the opportunity our to operating long-term. this lower and traffic as curve,

successfully to allows us service example, lending frequency carload premium separate traffic size trains, a train are networks For we handling reducing that and previously maintain costs. in service on while intermodal way

In and terminal addition, live what are without. yard at hard we taking network, our looks we can testing

over financials. to the it will Mark, turn now will cover who I

Mark George

good and morning, you, Thank everyone.

capacity ago, move Before simply about the cars turn which the resulted decongestion our adjusted that the write-down review the just of financials, in moment a and to talk weeks a PSR and in faster terminals on to road disclosed I to quicker we into locomotive the our said, of TOPXX network. it’s yards implementation, trains allowing has of two dividend network, get

roughly XXXX longer need The locomotives. better would trains levels. the in our time fleet volume quarter on fewer of at many sidelines, of X,XXX. We with balancing networks resulted X,XXX aligning of routes blending require XXXX the of with enter this spent we locomotives exactly approximate discrete along even out on our We but trains, locomotives fewer fewer how

XXX that of operations are the post team in determined while stored a locomotives world essentially cycle AC are for for surge the requirements and available our sale, modeled deemed PSR for excess and in Our capacity held upgrades. and balance

P&L QX, million The XX in value that essentially sale In on will otherwise fact, years be marketed sold $XXX book to those been the in scrapped in depreciated for the XXX effectively next remaining would the of the XXX the is have months. the were remaining locomotives or in while come.

With fleet targeted more the inventory resources. process, from homogenous to that and the lines, team of we the of also oldest, eliminated of to a rationalize the removal entire and least moving least were us In eliminate models reliable XX ‘XX. efficient model and mechanical locomotives able

show the rate Recall slides to this from will results. XX and moving we and locomotive to slide results, introduced excluding anomalous remaining the the impact format reflect our adjusted impact that last large slide So now down. quarter events

quarter quarter one and in tax a is year. in No just of other in refund or tax tax that EPS income rate. $X.XX is to worth to item There adjustments the the XX.X% XXXX, calling the QX and effective improvement an related operating the of one-time the in XXXX provided was ratio on XXX points That basis out core. of XXXX benefit contributed the so meaningful tailwind

improvement was both was enhanced RPU operational strategy offset the our effective Now very down results service Alan a delivery. moving described driven to. XX% our contraction to the adjusted an that quarter, by and strong as X% on that strong by customer Thanks to XX, Revenue earlier. by yield-up spoke enabled slide partially Jim Mike volume

QX, you on Operating QX expenses core And strong see in XX% time. dollar mitigating in $XXX million, environment OR basis which revenue were improvement and we performance, free the a improvement, OR XXX during that lower, record is terms very point flow that right, strong than showed the the year. XX% almost XXX cash in softer basis which a greater last of point decline follows despite the resulted

down employees drove slide XX% sequentially drilling QX. in Employee the reduction XXXX. now So benefits expense into compensation versus XX, quarter, QX count on from categories was and X% a operating XX% on of we in year-over-year the down

employment Our along incentive benefits, saved the associated over declined time, with costs with re-crews million. $XXX compensation quarter levels this and lower and throughout us

lower XX% commodity GTMs, volume and adverse Fuel significant efficiency from a as was down in consumption of combination a $XX decrease million prices, on well from also Consumption both declined lower gains. as mix. despite XX%

lower $XX by $XX million materials. $XX QX million, and $XX a of led recorded in million was operating other than reduction down million which spending on Materials or in Gains XX% was to amounted properties XXXX. the

alone savings Purchased from $XX services or million more from joint were quarter services venture and down was due rents in equity lower than X%. purchase to X% spend. lower income up Rents the offset that down with TTX the X% actually rent

around at new looking reduce the to big underlying to structure continue the when as we through model. and So operating shine quarter, realigned cost picture, change in our resources the first our

Moving to slide XX.

summarized as from below life was XX.X% discussed at income lower was income of operations to down first investment Let’s first the line. XX%. driven rate our benefit the take from we will remaining stock-based of I refund results $XX a lower Other the effective the to to range on as benefits look effective return earlier, from tax quarter to a million provide expect well as tax financial low quarter ETR the by returns corporate-owned rate XX% insurance and compensation. full-year guidance This quarters

to $XXX less solid cash million Moving last margins, our million with share in quarter, dividend slide now from than activity. capital by Thanks million. we $XXX our spend, continued record expanding And repurchase of shareholders to generated mentioned, as free $XXX QX also a was constraining the returned which XX, year. bolstered we to flow a but

do we Now know let’s in and XX. will the in that and thought certain the lower severity the we downturn year. slide environment duration worsened XXXX, be talk on beginning economic of has the outlook can’t much of Obviously, we while of here be progressively the revenue than QX at

guidance improvement. for XXXX, So well OR we the as pulled revenue flat our for as for guidance

we play a of as number to that scenarios, out. positioned are revenue We starts scenario are modeling a to so respond

can declines, keep contractions, we and that feel can with cost with what with it not on We revenue can’t costs. steep to match the just we control, With in short-term. modest takeout. you focused are revenue manage service We certainly up

of areas have well downturn but for help on general as by move, immediate an correlated directly the to are influenced a categories are take the the illustrative provide To pretty that you on Most is a mostly are components volume, but element to to that also cost management P&L of longer recovery. of cost and and anticipated the fuel and great that basis, you volume, how categories in there modeling the your changes. most that see volume as being duration decisions tied sense, purposes, the that pace obvious, dependent structural also expected subject they

We never won’t network absolutely service. And want we where occurs, when to then impact adversely on which compromise a safety. cut way handle in would customer a can volume we recovery

In roughly as to XX% as which kind fixed semi-variable. reason structural is balance refer a permanent. of of this is and XX% structural could be aggregate, volume our to I instead The of and costs cost variable its category there categorized

We not all structural are consider and that buckets trying cost structural continue just looking even the eliminate variabilize depreciation, have truly including been category biggest to to we on one would and at fixed. them work a many

We can even but over from have to at look and assets time opportunities fewer keep we getting adding are skinnier. to certainly unique fatter it make there this helps, how bar

recent Our savings dedicated team leadership structural $XX under evaluating roughly annual locomotive will by for all forward, depreciation generate so million to all opportunities. action committed of going cost that’s constant example this review is

we revenue may when that on other the I we every deep up are to So this with deliver great short-term significant OR, have improvement. leverage on while put will of side confidence operating be the market pressure dislocation, OR coiled our decline

wrap Let XX. slide up me on

balance capacity to share top bit access of robust and financial of with sheet the expansion recovery, clarity slope free flow the debt On lack important credit our the on it’s solid Given also cash markets. standing. steep generation, to and significant a with maintain markets of about drop of the in a good we you

debt light the of relatively two next levels in maturities years. have We

for challenging are this our from a the reduction significantly recognizing to is already by spend capital year, $X.X XXXX that on of budget billion revenue, we importantly, additions will $XXX environment million our have be levels XX%. limited XXXX, entering. Property More or dial-back roughly we which regardless spending

in not it If thing spend or the since jeopardizing to opportunities. revenue of dollars XXXX, right while lowest safety, the would level be do, absolute service the near-term

feel our weather good we liquidity and this ability real our So storm. about to

the call Jim. to, and Thank I will over you turn back

Jim Squires

men Norfolk of There running. the you, from us and strong be Thank to our first keep women Mark. trains performance for of job today, our the much to financial quarter doing proud report the to is in Southern are incredible

environment an customers trajectory. our uncertain difficult the executing faces plan, serving to Our industry with economy and our recovers. discipline capital a is Norfolk stronger By volume poised growth strategic emerge as ready for and exercising Southern well,

attention we for open you your line will Q&A. and Thank for the now Operator?

Operator

[Operator Thank you. Instructions]

Our Seidl go question first Please ahead. Cowen. of is Jason from

Jason Seidl

Operator. I doing hope you, the on Thank question. Gentlemen, jump good I well. is wanted to everyone outlook morning.

at for I of example, anticipation sort sort you think rebound into areas automotive count much head handle Let’s of one but of safety right maintaining being expenses that? or of is look forecasting Norfolk demand? say, you much think more are in you expenses equipment cutting not the some how for these to if does system, of how plants the only think do come. How you much too shutdown, you not sector, now the whenever it and about in holding for mentioned do

Jim Squires

morning, It’s, Jim. Good Jason.

this volume downturn. cost are and managing structural We through committed variable to our

reductions the saw adjusted with of $XXX first in totaling quarter that you million. So expense evidence

reductions comes this We at to in this the and that’s given year. in cost environment trend right to our thing are revenue when the it pulling the disposal do every lever

the resumes. upturn, volume of believe are growth do to which responding we Nevertheless, as capable come will we

generate rapid and We in bottomline result and leverage will margin significant improvement expect to operating that growth.

Jason Seidl

we a the terms we XQ how quarters? anticipated system clearly, a throughout take what going in are the gradual step the throughout you the going looking headcount we is at now, as But for even to XQ? are rebound, see that’s think Norfolk because about from right and in recovery guys right, big And how down, to should weakness move looking of

Jim Squires

growth will as I it said. does, Well, and when resume

generate significant and We place expect resources operating will have we the to leverage. in

next me comment talk and will reductions, bit further a Alan I the of terms of steps little outlook. in about topline Let to cost on ask kind

of network, are means PSR kind costs. forward, we as that, of step now. So said, pressing and blending continue a our start that TOPXX to going crew the the down Mike And playbook facilities yard at hard look straight more to the reductions drive accelerator trains, right out

outlook? Alan, what So, the revenue about

Alan Shaw

Good morning, Jason. Hey.

to are there appropriately we We customers very staying because that tight recover. our as and modulating our with make start going expenses to sure are we they are

within some pipeline say in should that first the that’s manufacturing slowly, start targeted would and some steel as generally The and middle the auto materials reopening pull example step say be additional well for of raw to through May, plastics.

as to of close reopening remains And really the customers of on it so forward. open-ended noted is and critical energy as plan improvement and then, the going economy about stay Resolution I and for prices. in X, that our Slide is us it we with just tight

Operator

Allison is go next Landry question of Suisse. ahead. The from Credit Please

Allison Landry

morning. Thank Good you.

the progress first improvement in OR So, on good quarter. the

So, pressure, I think margin I think the some the guidance, comment this achievable? you do XX know and expect XXXX intact you on I withdrew don’t still is OR XXXX is near-term guidance a so heard but you

Jim Squires

and leverage for we getting and as be recovery fast drive operating and the to sure. bottomline as an said, likely for focused as not OR in we in of impact is resumes, are to XX should very did XX thing But powerful certain, would have get shape growth on for guidance this our We OR of I and one improvement our a growth. we side will The timing rapid XXXX still pull other the can.

Allison Landry

you Okay. seeing customers to of of collapse in increased strategy. with and And then any yield-up the are respect sort -- from in resistance light the just volumes,

being said asked damages have and for contracts. number one-year that from a think for commitments they we I and volume monthly heard exchange shippers liquidated of are

considering share network? strategy, more on some keep Thank to the if any you. hoping just the in on So your order changes truck pricing to leading get losses thoughts volume and is are to to you this to whether

Alan Shaw

right Allison, unknowns the space now. in lot there are market of

clearly role supply is now, Our critical that and not right economy unknown. is the our in nation’s chains customer evident an

product, the pricing market. the we are of and in are we our are very of of franchise our We of value the confident pricing understanding our value

this benefit We maintaining have business that decisions are our occurs. and a understand shareholders. going to a market eventually we are through long-term approach our long-term and that we maintaining a great to We great of our and growth when got customers’ support view a of to cycle this we view franchise are

Operator

The next question is from Scott Group of Wolfe Research. Please go ahead.

Scott Group

Hey. Thanks. Good guys. morning,

want up maybe to X%, a employee sequentially few was what going where labor volume count now, you doing on with be should things then on any I So, thoughts with -- starting are just ask cost given environment? how forward head thoughts the per sorry, Any the about comp thinking -- right year-over-year. comp side, per and X% on employee we X%

Jim Squires

Mark?

Mark George

Yes. lumpy. the you are remember, on accrual is particular employee But to you when these Scott, right, of going write-back. noise very always quarter-to-quarter have the did And are you or top-ups per timing are X% comp incentive in sequentially. some have move

inflation. you So it and fighting over look I are got at to to you it at be inflation, time always you time, think more when going are over look wage

certainly So, dealing we that year. with something that’s every are

from know, PSR the have really which we part that win in the our we and actions shifting absolute down And you and as decline continued but generally, are in to gone particular numbers, to from taken. comp volume, the have but focus

Scott Group

not sure guess I followed. I I am

guess, going was on I this there anything so, unusual comp first going think quarter like in forward, continues should per about we like, certainly… as level meaning, or employee that forward, we assume this the So,

Mark George

look… Well,

Scott Group

total fourth but in quarter were -- in first X% costs think headcount sequentially? sequentially, down your point to X% I labor only X% costs, down the had or Meaning you the labor

Mark George

some You had incentive between accrual quarters. disparities

from QX ended, the So pickup based having thing, way on accruals. that’s benefit the -- year ended you one writing back had a incentive the of or up you some where in a

compared QX So tougher bit and that creates sequentially. a of certainly a dropped the little number

that you going here, the see it’s will more think year. I to be from throughout even

Operator

The is next your Morgan. Brian Please question with of proceed Ossenbeck from JP question.

Brian Ossenbeck

side, just potential Thanks side components taking morning. recognized on the that done it just do you benefits, maybe on Mark, has year maybe side, as completely. some to depreciation? the side for the fuel called secondly, the out labor and efficiency how even far out and year or can through what go locomotive the whether think be could then, you further Norfolk out what for call rolls you the like back your so And may this Good in next on question. for Hey. represent us the this walk the the about and you D&A different it and future,

Mark George

strategic Sure. we we on took I sideline. we TOPXX the other a and launch mean, out of mainly bit had were we locomotives again were plan first. that last with the locomotives, as talk And a they the the about locomotives little those XXX lot year on sideline, but

knew locomotives. were that see, more surplus we quarter probably more every we were going going going we were that and year, to to this We to ourselves throughout have convince

time, rather the here progress with look, very we we So really liberating regard than field. locomotive be post-PSR and said, in on organization have good leak in assets as over an to can out held a we needs? Where world got it hands

iterations, think, get And can know there look, PSR we were several pushed I we really have said, and that to. where the envelope the experts we in-house,

still started we said number the back XXX, and got maybe iterated a remaining to can manage when the on initially several X,XXX ultimately XXX, we where fleet. the to levels, with a is we had absolutely XXX, sideline, we times started back year doable, that of we if with go numbers So, the even volume team the XXXX

a take over So the to we out decided, clearly of significant was leak base. portion it of this time rather asset particular than that just at look it, -- a

out the to group it appropriate do, off. the decided do thing pull it we and write right So is of to actually thing accounting

cost. of assets organization that, them, benefit have we is, focused important thing a you company attract that’s is surplus because the to The assets first when any get eradicate doing removing off assets for on I very think and

yard in our congestion got You case.

let’s You all to whatever by less have will them of less to get these assign you locomotives, less then maintenance will tax congestion and got can attract property rid excess parking less quickly, and attention being cost, network up savings. it they commit and end

So as company’s and it’s from get properties. move just as the remove to recognize what them surplus possible quick to to healthier upfront

And relatively and book and very unique assets, from avoid a it’s now to industry, it many attaching over also you to group $XXX that’s accounting value and removing accounting that absorbing excess have of accounting, your from then further taken unusual by years asset discarded into it seems assets depreciating them million like remaining remaining form time. it depreciating group over have you assets our where you

avoid doing rid that, we of the future. we depreciation benefit it, get So get in we

this really that’s came So about. how

Scott Group

Can offer the for D&A the to anything what a or commentary that means mechanical couple fuel from going fleet this, ‘XX? more beyond you next resources, or you that maintenance any in are economy Okay. to quarters looking on -- realize homogenous in into of

Mark George

that eliminated. maintenance no of little lines Yes. inventory attract Clearly, million here, the for we are they bit the $XXX model of lines longer part went model that was a and less that seven

that’s So we have. benefit trailing another that

a from make some and have Maybe, fleet to to that savings want going are Mike, having we model. clearly, mechanical more locomotives benefit comments. arise streamlined yes, but, this, you from And some fewer

Mike Wheeler

these helped lot to smaller I network, so mean, and type material less less, whole your Yeah. materials that it with less efficient. are be of were managing models you models. models helps A because

help forward heard and rationalize we our we have you are to some those going of to footprint things as those are And going that, it’s continue now will coming the fruition and as that there well. doing to also help sharp

lot forward. a benefits to there’s going yeah, this ancillary So, of

Mark George

of of already those rid in got we QX. Brian, XXX remember, And

So remaining hopefully months, now, XX we will removed is there the over months XXX the that assets have X next and the just physical been the or in next follow. so

Operator

next of The David Stifel. from your question is Please proceed question. Ross with

David Ross

restart are Yeah. any wanted the a that mentioned would second yet, and normal how bit has onto little of types in different in look gentlemen. going create the talk doing might X done is in Phase say I are process, of that which what’s of all economy cars at not I mix commodity Phase that morning, issues and to completing combining the you online a Where back been the Good single We TOPXX. types X? left on come you to quarters, about depending this, train.

Jim Squires

have we that we the mapped under completed essentially out to network this point XXXX. redesign that TOPXX have through and Mike of the went Well, all steps taken we had through

So all implement, would we we we initially phases of at TOPXX have that this implemented point. signaled had

use to more forward, have network crew hard Mike, to facilities focus, on add? and at Going anything operations. said trains the start the yards look reductions, we support as additional use, we our we blending a is

Mike Wheeler

Yeah.

the we And We network. into automotive quarters talking TOPXX very blending have we year, big and on that successful. the last blending our first that. a blending about with the you merchandise talking general about all did been into well We was as general the started merchandise part started of bulk our then of and

successful. intermodal And that’s network we have we the as been And even into we traffic very in merchandise are into the of bulk network. and process now blending then, our continued premium on, general blended have

into network. blended different So we our types have traffic of all really the

the now So to where point a train we is are train. a

in our really implementation X So Phase is place.

And that as requirement also needs, are it right now comes efficient you blended and we ride train, service that the it us as is go back, it but forward a as traffic and be. on can a that beauty gives this, can train a of the train

going the network in to just continue going So really network we back are good are to place implementation, forward, on. traffic with a TOPXX the optimize and comes our with as we

Mark George

intermodal could customers provides and to longer do train. we a no us find we to could density it intermodal And are point our for and We with find of product that David, if benefits blocks a put smaller train thing, point broader on it and a us lanes, and which need and open one also up some add enough it offering, I doing. merchandise

David Ross

That’s great color. you. Thank

Operator

is Alliger ahead. question Jordan next The Please from go Goldman of Sachs.

Jordan Alliger

you the the on price for a have down XX%, that yields some these to far, face yield I just degree. question think, impacted just a time, volumes I curious curious, to are I better, discrepancy the of pretty industry or Hi. so the your you tending about be yield at -- forward? maybe which for mentioned wanted heavily said, trailing bit, bit hearing thus up the follow do am am is I the as just been you related steep to of declines volume price Thanks. some in with for same going how obviously, deal

Jim Squires

at Southern, long-term, determined Norfolk best the make to Jordan, decisions and interest of we in are shareholders. fierce are competitors our we

ability deep our of confident improvement our ton-mile our us. is franchise, years, customers service for focus outstanding in it’s product, are providing markets a margin growth for in to you to and in and this a a platform knowledge see on our which our strategic and consistent We of value and a trends last the price can over have our with we also three a the approach and with RPU, got revenue-to-revenue

coal in that year, of Last There down network. volume the this was of coal are specific the are impacting in market our year. some forces XX% volumes. That XX% utility quarter was our volume first

that or markets, participate been mills, hit for I integrated out. with customers so sand as whether the has as highly ethanol throughout and steel are have have pressured taken energy been We are And that’s much who year, integrated also frac those in separately, the a They we pressured. year. a called the

was of point volume year. toughest so our year. year, the week to One are is, of our highest the thing we against week of comps believe XX running year-over-year mid-May last out I

So volume of year-over-year. that’s part decline causing the

within $XXX to important But plus it’s truck billion logistics understand opportunities also that we note our that and and are market.

in we We as channel and partners the franchise east, have powerful industry. know, the aligned with are you best in got the most intermodal the

merchandise We got diverse a service with have product. great a network

right our collaborating to on and adjust close and customers chain very staying near-term the we are dislocations as now, opportunity. with are We they supply opportunities them longer term

So are headed. we are where confident about we

Jordan Alliger

Thank you.

Operator

Oglenski The proceed next your question. Barclays. with from of Please question is Brandon

Brandon Oglenski

we the a does here? in talking get with of and Hey. coming out an levels we get Alan, include or back them path for shutdowns service changes forward could question. there to guess, post-COVID. what’s take volume Are up my follow-up you or Good what’s once patterns to for about the that beyond thanks guess and if and just mean, in I now I environment I pricing taking going though, recovery morning, your right customers prior

Mike Wheeler

differences Yeah. an Brandon, There is supply going be are moving going in chain forward on think, There some to see and more emphasis I to is reliability consistency. you forward. requirements going be more positioning. to potentially

benefits truck. are because of the have competition, the happens, to which Southern to form frankly, be East. franchise And intermodal the is When best offers people focused of cost, recovery we Norfolk going capacity, ESG Southern, in on that and got relative that primary Norfolk all and service our

we So consumption of economy. XX% touch and the in the the manufacturing over

staying service we close launching Even to are now We our innovative are customers. products.

pretty So the we headed once re-opens. are things confident about economy where are

Brandon Oglenski

follow you of Okay. dependent I or XXXX that that up appreciate was Mark of backing variability that. Jim, And you OR not pretty then, for did guys maybe And off the that some expectations. your are service product target. cost bullish is Jim say

of a of where level in putting place operating are you of see line structure sight sort volume I at future? achieving that So, the type you in cost some guess, ratio to

Jim Squires

ratio. when XX That but if, get goal. remains a not we is to operating our question the Well,

will morning. to that We of that been we have there with yes, get a structural structure, through cost cost are as kinds the we be quickly as through can. And initiatives leaner going this

will when and much of resumes, it strong which we have the And part so, very we growth outlook that’s will. operating yes, leverage believe

Brandon Oglenski

All you, right. Thank Jim.

Operator

Bascome proceed comes The Please your question. next from Susquehanna. with of Majors question

Bascome Majors

stress taking How for free think Yeah. cash several to provide class free guidance of we about own some scenario think sort kind flow of ones did Norfolk today, most of Thanks my a have pulled in with year? business. Mark, tests framework investors but like the about questions. should their worst to this for case, flow you cash have of continue the their

Mark George

Thanks, Bascome.

have of whatever we and and wrong. teen one, we have we a know one ‘XXs. modeled volumes single-digit different to scenarios revenue declines So declines But haven’t picked high ‘XXs be on modeled we to we mid-upper number pick and because will

deep this to But augment and will preserve going going cash don’t that positive have before this cash And of be flow out it and sure see circumstances this thing contribution, in regardless. a would go we one because significant the you recovery expenditures an we is all to to liquidity we have again. grow cases, certainly that begins to year is our doing really free you we those flow make are and last maintain and we chunk how have cash, we how proper uncertain balance taken will capital year to what going are time, we long noticed, modeled know are

whole So we cash I see free have equation as still and flow we we in positive and scenarios liquidity slide are feel pretty shared. much all well can about actually cash modeled the very from positive generating the flow good as our you

opportunity. got have as vehicles very, frankly, to strong go reduction cash capital again, the balance also well very We we plenty is meaningful very to and credit, of needed, of a plenty if us for as

Bascome Majors

Thank be been that a could some call, was biggest of from process the that the that to reductions, further you broader January update the for a outside kind capital you. on change discussion, as coming structural mean, hard a you term have structural the this take through so the look going within walking you I have that? think said these of maybe of where so you the could any that and priority Thank to you industry you sorry, equation business into for at opportunities CFO. I surprises the intensity of to longer you cost take us through one step on that. going am was this

Mark George

with of in very we have evidence think, a the bit I the here that reduction mean, little you see capital of I done year. Yeah. early that

don’t easily. your You or capital annual XX% spend cut $XXX out million of

discussion, team get as we through, just a got reduce to level. do together what we whole So times I locomotive several really could a we similar to to went and spend new and iterated capital baseline the on

are we is haven’t which to For absolute been low at dollars. honest, this -- since in here be level, we XXXX a

come it’s sure because enough, so to of going real be pressure, and through us, volume sense glad right was in But exercise. we it’s, I do felt the have it’s that thing it gone to am there we front was this we

though of revenue the pace contain percentage below growth the more XX a at able in are revenue below revenue at we grows, to here future would as From of that some a point. in hope grow the I into to growth lower XX moderate maybe pace and CapEx

thing at regard with one look I that’s we to is frankly well pool, other that So incentivized second talked not we a have the the shift is are depreciation are to organization think that group on that hard the going the on locomotive then are and of frankly, sure, in they We keen the long rationalization motivated be particular of assets we is about pools very took what itself. and and necessarily the of to and as looking once assets one the perils look make and books. you at now over or assets at

out maybe there Do In at, we any we have assessments, this franchise that our the they at a more, that, might to have look that lot need those are coal cost. attract considerably. we we do attract attract case, area electricity I don’t one have think shrinks network of like maintenance seen we they structures buildings because costs, they property cost, again attract look along

we re-examine surplus we Do and assets have coal in that need to at. re-look

see quarter a as open-minded think, questions about are some that. the I team these team, in of So you it, asking we evidence and again, the is first

Operator

proceed Ravi next with of is question from your Morgan Shanker Please Stanley. The question.

Ravi Shanker

incremental Thanks. when about follow come up on the I just back. discussion volumes wanted to do the margins

need given lot shows does again, margins You not the become structure that if that way an back? on of semi-variable that to XX you it’s cost structure, down. pretty cost very to incremental really have or on nature which have your variable, a back up pretty slide which just how help the impediment mean, should we more come by deck. illustrative It’s of But, way on those I helpful, you variable slide a a cost

Jim Squires

in Well, be our within line we as volumes operating of many there expect to structure, able and the the lies costs leverage the on do cost the model. to return hold

volume expense volumetric increases will Now, certainly, have case with is the some the on as on we the way down. up way

additions in and the which can bottomline We upsurge, that do generate terms asset much rapid and But the that know growth. we base key the resource to of we be as significant should can. ratio volume possibly of will line hold and and wave operating as to improvement ride

Ravi Shanker

a east, follow-up, we as competitor? characterize would mean, in the rail the competitive truck obviously, your And but you with I Okay. how what’s more the know happened environment in side, just

Mike Wheeler

opportunities the solutions. supply our products are is the Yeah. changes now chain those competitive are and franchise to now. deal that service us are customers our working by for very and and with Trucks we long-term strength -- help near-term as is Those right that our we supported are of solutions developing their in right on they and are

with got have economy. franchise the wonderful we U.S. I broad to exposure noted merchandise

have period. and can have time great We can a four an have the Southern customers and just entire franchise, back you product. the our see growth years, we five back that that the three east back intermodal, and years, during years go you Norfolk go in you paced in best And go the within intermodal outstanding industry got service got

way to in great XXXX. recession recovery can the You from all go back the

their customers That -- willingness to partner have shareholders. making to of our are growth it’s includes interest the talked we So our over the as I our about our market decisions in long-term before, long-term. best with approach and support

Operator

Bank The Hoexter question with your Ken of question. Please comes of next America. proceed from

Ken Hoexter

as job bit could locomotive yards interesting you some talked you permanent? talk the more a about taking, bit understand about becoming what just some just this business the shutting talk I of move downturn. see permanent, in examples volume during the a the want are the more bit but are steps could move. move taking steps you And morning. Hey. the side are Maybe of and you -- what that an know see, are cost the back, Good trains, to. you that other Mike Jim, can little and comes on be you there in great blending can a you or the to the

Mike Wheeler

Yeah. you. Sure. Thank

have looking recession, or we at been two a yards As have terminals, loan either will since five great them noted, of structural we top of long-term cost have did those we go are look year term continuing our our we for of forward. reductions as you long-term idled see we more that to and and converted are and last you at that

that take Mark time yards, our I noted, we go note about brought have traffic shutdown will assets talked less lot are and those also that smaller would over of and it. in And consolidated cost. a have away as that we outline

it that without at yeah, come continue out are what at, we a go we have forward. are at are will as to and got we going hear and looking out and can find But we look things But there and you to more opportunities we live lot are it about those looking to we more of do.

Ken Hoexter

looking appreciate when past your Alan, this But you plan I a competitive How lately. the Okay. taken just, for XX% down you and before maybe at comment do were week market. beating talking talk disappearing, to as coal are structurally about competitive and back, looking expect about come your export being this, just you a and something a that the market it maybe just is you come just on business winter the at bit? back that’s views domestic mild markets it really

Alan Shaw

or that in coal secular utility the understand coal a we utility franchise nations Ken, decline. our is

we on natural adjusting our a is, are as promote relative working ways response well. franchise coal but gas, from us what And and to our see so you customers with dispatch to also

line saw just you Land saw quarter You Ashtabula you our saw this of of Corporation in with assets. Pocahontas short so the idled that and that activities, sale

utility March a was XX the Coal are at in at XXX tons. days. in are now incredibly Stockpiles burn coal million They record at national franchise high. low right new about

to utility amount And -- get pressured going think, need is coal I coal of running. a to be franchise considerable for back economy the our We so, is time.

burn. that commercial So now going to coal an the to for we are are and back and right promote overall need load increase also in in industrial see prices comes prices, teens in going and not electricity to is PJM energy the

Operator

Wetherbee question. question Please proceed Chris Citi. The of next with from is your

Chris Wetherbee

decent more chunk the outlined if Great. little plan, of company drill Maybe, in Thanks. the around the when size spend PSR specific were Hey. time. XX% CapEx XX% a you to bit CapEx over when comments, morning. of kind locomotives or the of I could outlined the some Mark, plan Good think you

think even drive the some but Is to longer potential sort that taken I obviously rationalize XXXX. seems guys that right just recently and really the of back and it the this XXXX like have have that it year, there term rate. actions in of that, think might that to or into takes up other be potentially puts you way could number about

to a spin want sure and understand likely relative you of going to was that Just thought what this I to maybe it a sort that ago so? year is that a is half make or down come

Mark George

IT, given little it the of the we we so not with, question, notch CapEx some is board, I much in am categories even a the Yeah. going little really the bit especially to have. team bit areas, Mike. on at the but But have pressures in Thanks the for the a across bring and tag of Chris. it’s look reduction various a whether volume to taken locomotives, all our this spends, other terminal that maintenance, try the down really

we the I cat the about it have bit little cat X raise locomotives from really and want, pressure Mike, a So versus going to are ops we and across earlier, like stuff. here. But you to I talk can X board know mentioned went on though, maybe

Mike Wheeler

Yeah. Sure.

revitalization, DC this. locomotive cost capital to with a got reliability out from to we that the the locomotives really been some really there is AC committed On upgrading to have efficient are that standpoint AC the pleased conversions, and we DC from because

those. on we we years, additional opportunistic do will some do going the to out, are AC conversions we out, taken those the that at of over what project continue we that DC So this were next are not forward to year, it’s couple to going we pushing looking did thing and right push had

pushed yard our fleet we out. have of and rebuild Some local

at have talked past. AC DC continue pace we that the about in So conversions to the will the

capital expenditures, company, we in the particularly Relative technology have to that great the side. fortunate are got our some very engineering on we

locations. We rails, sure in ballast right are making ties putting we and the that our are

even They We doing are machine to good whether are technology ties are these internally. vision using rays not. have that X are got days determine they or

the needs in the in, are same So the the making and that sure predictive we to where put will to analytics ties pinpoint be rail asset really front, in are with for to we our are allowing put right on replacements. we reliability are where we place the right well maintaining locomotive at track with fact them a And the we that’s replaced us infrastructure. this thing determine as comfortable when that thing rail at time, the doing right we really long-term, railroad using as both

Chris Wetherbee

it. Got

then very you a That’s quick about appreciate market. color. I would helpful. the Okay. And maybe truckload the Alan, think follow-up,

truckload volume there think we comes building downturn of we tighter somewhat exited. coming what a when be market into back, that sense this could sort is I a coming through than

the on be kind talk how and strategy into you sort might of of for opportunities about the the can that plays intermodal there you? So side what

Alan Shaw

to in some XXXX similar to you reactions and supply it, saw saw side Yeah. it’s Chris, you steep isn’t where what truckload spot a prices. the on XXXX, and downturn very that’s considerable pretty

we intermodal look service the to got for selling best it going the than to product, best-in-class lower its how and things and darn into have how lanes give our new is new be on pretty that for them which with also structure so an capacity, continuing our means are And the a partners, collaborate we for ESG supply its them we truck, east. channel chain it’s grow service then valuable in partners exceptional opportunities, cost to franchise post-COVID-XX, and us

great there. in shape are we So

Chris Wetherbee

for Thanks it. time. the it. Got Appreciate

Operator

question of your The Please proceed question. is next from Long Stephens. Justin with

Justin Long

changed last to on good fall in the regarding one prices. morning. and obviously, domestic is off thing intermodal, Maybe Thanks question, that that’s follow-up fuel

wondering network business, prices in that the And contractual pricing was and gap still a comment between think in if forward, intermodal hang truckload intermodal if on contractual pricing levels? plus do current whenever things about recover feel GDP you out your I domestic going today. So could around pricing the growth fuel you it even is as you

Mike Wheeler

The spot And closed. Hey, point, starts real are and improve pressure has there truck economy Justin. market, supply certainly truckload gap coming from that to particularly as at market. spot that’s ramifications as the going affect is the The throughout some the market. to of

and as us we the that chase for vision are maintain not approaching important truck. to it’s spot the So market

heard have me You that interests not within corporation. long-term talk about of before. That’s the best our

So product, franchise over service on the outpace can we a any allowed we intermodal is that and a that of deliver years. great our are to customers focused what growth industry number great, has and

Justin Long

of substantial the obviously, comment Okay. of just the gap, weak right it’s that competitor. difference could in is, but now, procedure if how as across Board look a the should you gap And And that thinking taking losses that there you if volume I year maybe as forward? around volumes the it’s at that the and there that going gap, to this you. at the year-to-date market mix? timing are share business, been bigger be close have actions about that looking driving picture are in you function pretty Thank a major eastern performance any is am on at we curious

Mike Wheeler

one Justin, our is coal it’s quarter volume I was had in the last of is is, first down utility of franchise, the XX%. of coal our -- the So, things volume year about XX% which utility that talked

having So impact on an that’s us.

in having such our sand, is on or and intermodal have market trucking on inbound, impact the and tougher integrated mills an an so spot talked business saw that’s having we the international frankly, an that I having outbound And franchise. on whether contributes steel about energy impact all markets in ethanol The of is feedstocks ethanol an impact impact corn is to comps, Asia impact on year-over-year noted. February we Frac us. intermodal as as

pretty We are comparing year. still last or riding against of volumes elevated

which we are our markets the in shareholders over long-term year. highest plus of revenue And are ability get pretty of confident markets overall, in We our through of confident understand in we were the knowledge in and the week quarter volumes not at make just that last decisions and but very level for XX, we to will just best of and franchise value our the RPU three last the value price, this to revenue trends and you and the per our our product an and ton-mile the see that years. our

Justin Long

time. Okay. Thanks. I appreciate the

Operator

is The your Evercore proceed ISI. Jon next question of from Chappell question. Please with

Jon Chappell

CapEx you, My of that button question out us and you we bit you. pressing the a a pause Good little the clarity it’s disciplined Any for first a morning, keep manner returns, more should comment time bit lot of buyback changes. program this? give coming the on CapEx on in of assume on everyone. given that Thank been more capital on

Mark George

Certainly, QX John. were in the you, Thank we -- steam Yeah. share repurchase on full continued activity. we

Now, the significantly, obviously, while of are on recovery. of also for flexibility share depth pace but going markets decline approach as we do to repurchase, contracting the the depending more at maintaining see we looking conservative when are a to take

So, here. more a take I we will certainly approach muted think,

Jon Chappell

have -- from plan follow-up on sitting then, What are implementation have precipitous you the and guys you metrics quickly, the XXXX adaptations you the made volume? the the Xst. were taken. you a been fall for February look where Okay. on lot May Thank plan that to PSR really And other given the at some talked Xst and of service to Michael relative say locomotive you. But from about of

Mike Wheeler

that our Well, quickly, been I starts thing adapt think, for have we crew right? to the take the we beneficial to that, volumes the that it us out, -- -- come are As take is is able pretty with pretty so I April decline matched saw much which start that far, will out, you the my we in well. decline note the crew matched slide, against have that XX%, that’s volume in so it around able

get or the to is are thing we that’s happens adapt a of and quickly a the this So it. Well, to changes. volume on of we on of nimble like, really when it that that because downside, out with occurs have shown come upside lot leverage the can have we that going when organization

Jon Chappell

Thanks, Thank Mark. Michael. you,

Mike Wheeler

you. Thank

Operator

Thomas UBS. with Please proceed Wadewitz your last of The from question question. comes

Thomas Wadewitz

follow Good on wanted to slide to little Yeah. refer think, a if and I XX. up starts leverage, your slide, can I train I Mike bit morning. maybe it’s

tough gets the been So, are of has length you the volume backdrop. probably more obviously, or improving function muted, with moving weight all a train metric that expansion on

So ratio starts really train be how starts used how do out you to is a trains? and you coming see side back a about back just to don’t lot of train there of have rapidly what expand couple you think to might a the that add the bring other quarters might or run you metric need or where period longer

Alan Shaw

train depend really an and starts. of are it’s we train in starts. still a capacity of type the lengths will we both the it incremental going traffic But is, to train if get obviously, to got Board, our have It of across traffic just to add if have and lengths on where what before do lot more it’s full back comes you train

both terminals service crews the have the the the well capacity We as in local yard crews and capacity. got road with the crews, to handle

start got we to increases. have have train before So, while or we deduct make a

as leverage it’s in still we get to are the place. to this going things upside a great pulls So up, continue

Thomas Wadewitz

mean, you we where out think trains without you the actually but think to looking a adding see there side, I just could positive you volumes, volumes? But be win while, other run you for obviously, could

Alan Shaw

traffic know organization Correct. the ability where comes do Yes. to the We That’s That’s our that. and that’s goal and plan. from plan. that’s our this of our

Operator

the This over for I will Squires question-and-answer Mr. back call turn concludes closing Jim comments. now session. the to

Jim Squires

again you talking safe We Thank you forward for everyone. this questions to you. quarter. Thank your morning. Stay next to look

Operator

and teleconference. today’s your for This you thank does participation. gentlemen, Ladies conclude

wonderful lines have a and disconnect now your You may day.

Norfolk Southern (NSC) 29 Apr 202020 Q1 Earnings call transcript