Hello, this is
Michael Ward.
This past Monday,
we announced some very exciting news about our company’s near- and long-term
outlook. Thanks to the momentum you have created in our safety,
service and financial performance, as well as the favorable market environment
for rail transportation, we were able to announce financial guidance for the
first quarter and full-year 2008 that is well above the current Wall Street
expectations.
We’re off to a fast
start to the year, and the market for our services remains strong. In
addition, we have raised our long-term guidance on several important financial
measures, including our belief that we can achieve compound annual growth in
operating income by 2010 that is 25 to 30 percent higher than we previously
informed Wall Street.
Also as a result of
our confidence in CSX, its marketplace and your ability to sustain our strong
performance, we announced two specific actions to increase shareholder
value. First, the Board has authorized the repurchase of an
additional $2.4 billion in CSX shares. This action has the potential
effect of increasing the value of the remaining shares held by
investors. In addition, we are increasing our dividend by 20 percent,
the fourth time we have raised the dividend in the past two and a half
years.
It
is important for you to know that, in addition to creating value through this
increased share buyback and dividend increases, we remain committed to
continuing to make significant investments in our railroad, $5 billion over the
next three years, while maintaining a credit rating that enables us to do
so. That’s what we mean when we tell our investors we believe in a
balanced and sensible approach to the management of their money.
The future of our
great company rides on the continuation of the outstanding improvements you have
made in our business. When we do that, we create value for all
shareholders while also meeting the needs of customers, communities and you, our
employees. The Board and management team are tremendously proud of the work you
have been doing. I am confident that, together, we can achieve
even greater success.
Thanks for
listening, have a safe, productive day, and I’ll talk to you again next
week.
Forward-Looking
Statements
This information
and other statements by the company contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act with respect to,
among other items: projections and estimates of earnings, revenues,
cost-savings, expenses, or other financial items; statements of management’s
plans, strategies and objectives for future operation, and management’s
expectations as to future performance and operations and the time by which
objectives will be achieved; statements concerning proposed new products and
services; and statements regarding future economic, industry or market
conditions or performance. Forward-looking statements are typically identified
by words or phrases such as “believe,” “expect,” “anticipate,” “project,”
“estimate” and similar expressions. Forward-looking statements speak only as of
the date they are made, and the company undertakes no obligation to update or
revise any forward-looking statement. If the company does update any
forward-looking statement, no inference should be drawn that the company will
make additional updates with respect to that statement or any other
forward-looking statements.
Forward-looking
statements are subject to a number of risks and uncertainties, and actual
performance or results could differ materially from that anticipated by these
forward-looking statements. Factors that may cause actual results to differ
materially from those contemplated by these forward-looking statements include,
among others: (i) the company’s success in implementing its financial and
operational initiatives, (ii) changes in domestic or international economic
or business conditions, including those affecting the rail industry (such as the
impact of industry competition, conditions, performance and consolidation);
(iii) legislative or regulatory changes; (iv) the inherent business
risks associated with safety and security; and (v) the outcome of claims
and litigation involving or affecting the company.
Other important
assumptions and factors that could cause actual results to differ materially
from those in the forward-looking statements are specified in the company’s SEC
reports, accessible on the SEC’s website at www.sec.gov and the company’s
website at www.csx.com.
Important
Proxy Information
On
February 22, 2008, CSX Corporation ("CSX") filed with the SEC a revised
preliminary proxy statement in connection with its 2008 Annual Meeting.
CSX plans to file with the SEC and furnish to its shareholders a
definitive Proxy Statement in connection with its 2008 Annual Meeting, and
advises its security holders to read the definitive Proxy Statement when it
becomes available, because it will contain important information. Security
holders may obtain a free copy of the definitive Proxy Statement and other
documents (when available) that CSX files with the SEC at the SEC’s website at
www.sec.gov. The definitive Proxy Statement and these other documents may also
be obtained for free from CSX by directing a request to CSX Corporation, Attn:
Investor Relations, David Baggs, 500 Water Street C110, Jacksonville, FL
32202.
CSX, its directors,
director nominee and certain named executive officers and employees may be
deemed to be participants in the solicitation of CSX’s security holders in
connection with its 2008 Annual Meeting. Security holders may obtain information
regarding the names, affiliations and interests of such individuals in CSX’s
revised preliminary proxy statement filed on February 22, 2008 with the
SEC.