CSX 2Q17 Earnings Call Notes

Hunter Harrison – President and CEO

Frank Lonegro

A few markets will experience y/y volume declines

” a few of our markets will experience year-over-year volume declines in the third quarter due to market specific headwinds you’re very familiar with. Auto shipments will be impact by softening production, as reflected in the forward views of North American light vehicle production. Crude oil trends have essentially gone to zero more than offsetting the growth we expect in the core chemicals markets. And domestic coal remains challenged due in large part to the impact of the shortfall competitive loss as of January the 1st.”

Frederick Eliasson

Tough transportation environment but capacity is tightening

“I think the key thing it’s been a tough transportation environment for several quarters now in terms of pricing to their market and generally this is about truck competition, there is a lot of excess truck competition. Fortunately though as we look at the market over the last few months and we’ve seen some signs of tightening capacity. I think the combination of tightening capacity environment does move into the second part of this year and early 2018 coupled with what we are expected to do from a service perspective should lead to a 2018 that is good from a top-line perspective and as I said ultimately this is all about providing a service to our customers that they want to use day-in and day-out. “