Florida-based transportation company CSX Corp. will target an operating ratio of 60% by 2020 as part of a plan to capture growth opportunities.
CSX plans to achieve revenue growth at a compound annual rate of 4% in 2019 and 2020, average annual capital expenditures of $1.6 billion through 2020, and cumulative free cash flow of $8.5 billion from 2018 to 2020. It expects to complete $5 billion in share repurchases by the first quarter of 2019.
The company reported a 12% year-over-year increase in operating income for the fourth quarter of 2017. Revenue fell 6% from the year-ago quarter and expenses were down 14%.
CSX has taken a number of steps to streamline the organization, including the formation of a new executive leadership committee, the conversion of nine operating divisions into four operating regions, and initiating the consolidation of nine dispatching offices to a central location.
