Q2 2024 CSX Corp Earnings Call Transcript
Key Points
- CSX Corp (CSX) achieved a 2% total volume growth, led by a 5% increase in intermodal franchise units.
- Operating margin improved sequentially by 280 basis points, reaching 39.1%.
- Revenue from merchandise increased by 5%, driven by strong pricing and volume growth.
- The company demonstrated resilience by finding creative solutions to mitigate the impact of the Baltimore bridge collapse on coal shipments.
- CSX Corp (CSX) maintained a strong focus on safety, resulting in a reduction in train accidents and mechanical-related derailments.
- Operating income was 1% lower compared to the previous year, despite sequential improvements.
- Revenue was flat due to lower coal prices and a decline in other revenue streams.
- The company faced headwinds from lower export coal benchmark pricing and the Baltimore bridge collapse, impacting revenue by approximately $100 million.
- Intermodal revenue growth was muted by weak trucking market conditions, affecting domestic intermodal business.
- The macroeconomic environment appears more uncertain, with potential headwinds from interest rates, a sluggish housing market, and fluctuating commodity prices.
Please stand by for streaming text.
Good afternoon, everyone. My name is Briana, and I will be your conference operator today. At this time, I would like to welcome everyone to the CSX Corporation second-quarter 2024 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Matthew Korn, Head of Investor Relations. You may begin your conference.
Thank you, Jill. Hello, everyone, and good afternoon, and welcome to our second-quarter earnings call. Joining me this afternoon are Joe Hinrichs, President and Chief Executive Officer; Mike Cory, Executive Vice President and Chief Operating Officer; Kevin Boone, Executive Vice President, Chief Commercial Officer; and Sean Pelkey, Executive Vice President and Chief Financial Officer. In the presentation accompanying this call, you will find slides with our forward-looking disclosure and our non-GAAP disclosures for your review. With that, it is now my pleasure to introduce Mr. Joe
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