advertisement

---

The first Class I out of the gate to report first-quarter financial results was pleased to announce several firsts: record surface transportation revenue, income and operating ratio. Yesterday, CSX Corp. reported all-time-high quarterly surface transportation revenue of $2.3 billion, a 10 percent increase compared with first-quarter 2005.

In addition, surface transportation operating income reached a high-water mark of $487 million and rose 39 percent, and CSX’s surface transportation operating ratio dropped to an all-time-low 79.1 and improved 4.2 points compared with 2005’s first quarter. CSX Transportation’s first-quarter operating ratio of 78.7 improved 4.5 points.

CSX also reported quarterly net earnings of $245 million, a 56 percent increase compared with first-quarter 2005. However, quarterly surface transportation expenses of $1.84 billion rose 5 percent.

“CSX continued to improve its underlying business performance in a strong demand environment,” said Chairman and Chief Executive Officer Michael Ward. “Most notably, our rail operations showed solid improvements in safety, service and efficiency as we continued to execute the ONE Plan with consistency.”

CSX also announced one-third of CSXT’s capacity expansion projects are underway and will be completed by year end, with the remainder scheduled for 2007. The Class I plans to spend between $300 million and $400 million to expand capacity on lines between Chicago and Florida, and New York City and Albany, N.Y.