CSX(CSX) - 2023 Q2 - Quarterly Report

Financial Performance - Revenue decreased by $116 million, or 3$3.699 billion in Q2 2023[100] - Operating income of $1.5 billion decreased by$221 million, or 13%, year over year[100] - Earnings per diluted share decreased by $0.05, or 9$0.49[100] - Total expenses increased by $105 million, or 5$2.217 billion[113] - Other revenue decreased by $55 million, mainly from lower intermodal storage and equipment usage[111] - Income tax expense decreased by$64 million due to lower earnings before income taxes[117] - Free cash flow before dividends decreased to $1,503 million in the first half of 2023, down from$1,748 million in 2022, primarily due to higher property additions and less cash from operating activities[123] Operational Metrics - Intermodal volume decreased by 10% due to reduced international shipments and a softening truck market[108] - Coal volume increased due to higher shipments of metallurgical and thermal coal, while domestic coal shipments decreased[110] - Merchandise volume increased in categories such as Automotive (21% increase) and Minerals (6% increase) but decreased in Chemicals (4% decrease) and Forest Products (3% decrease)[104] - Train velocity increased by 16% to 17.7 miles per hour in Q2 2023 compared to 15.3 miles per hour in Q2 2022[128] - Dwell time improved by 21% to 9.3 hours in Q2 2023 from 11.8 hours in Q2 2022[128] - Carload trip plan performance rose to 84% in Q2 2023, up from 59% in Q2 2022[128] - Intermodal trip plan performance increased to 96% in Q2 2023, compared to 90% in Q2 2022[128] - Total revenue ton-miles increased to 48.5 billion in Q2 2023, up from 48.2 billion in Q2 2022, reflecting a 1% improvement[128] - Total gross ton-miles reached 95.7 billion in Q2 2023, compared to 95.0 billion in Q2 2022, also a 1% increase[128] Financial Costs - Interest expense increased by $30 million primarily due to higher average debt balances and interest rates[115] Safety Metrics - The FRA train accident rate decreased by 16$2,483 million, which includes $238 million in payments related to finalized labor agreements[124]