CSX reports progress in shift to new operating model

CSX has made "very good progress" in its transition to a precision scheduled railroading model, with the railroad returning to a "normal operating rhythm," President and Chief Executive Officer E. Hunter Harrison announced today.

Harrison is now confident many of the service problems recently reported by CSX customers "are behind us," according to a CSX press release.

"Fluidity in our terminals largely has been restored and we are appropriately resourced to continue making progress. Car dwell has improved from week to week for the last five weeks, and system-wide velocity is increasing," said Harrison. "I am confident that as CSX continues to implement the precision scheduled railroading model, it will provide profound and lasting benefits to customers, employees and shareholders."

CSX's progress on its operational restructuring also was addressed this morning by Executive Vice President and Chief Financial Officer Frank Lonegro at Cowen and Co.'s 10th Annual Global Transportation conference in Boston.

In light of CSX's operating challenges in July and August, the company has refined its 2017 full-year guidance from an operating ratio in the mid-60s to an operating ratio around the high end of the mid-60s, and earnings per share growth from around 25 percent to a range of 20 percent to 25 percent, in each case after excluding restructuring charges, said Lonegro, according to the press release.