CSX≤ 65

This article describes how, at the end of 2010, operating income for CSX Corporation has more than tripled, earnings per share have increased five-fold and the operating ratio improved 1,750 basis points since 2003 when the current chairman, president and chief executive officer (CEO) took office. The CEO is proud of CSX's accomplishments. Discussing ways the company can continue to improve its financial metrics and boost other performance measures are considered to be a priority. The CEO has identified some goals for the future, and some of them are: boost productivity, improve service performance, raise rates and take on more traffic. All the objectives are part of "Grow to 65," an initiative senior execs introduced earlier this year to reduce the operating ratio (OR) from 2010's record 71.1 to a high-60s mark in 2011 and mid-60s level by 2015. Much like a "Drive to 75" initiative that was launched in late 2006 to lower the OR from the low 80s to mid-70s by 2010, a target reached one year early, Grow to 65 will help make the company more productive and efficient, elevate rates above inflation levels, garner cost savings and drive down the OR to a level never before achieved at CSX. Yet, there's one major difference between the two initiatives: Grow to 65 includes business growth as a primary component, and sustainable growth at that.

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  • English

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  • Accession Number: 01349448
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 1 2011 10:45AM