Fourth Quarter 2012 Results Donald W. Seale Executive Vice - - PowerPoint PPT Presentation

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Fourth Quarter 2012 Results

Donald W. Seale Executive Vice President and Chief Marketing Officer

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Revenue $2.7 Billion, down (4%) RPU $1,498, down (3%) Volume 1,792,100 units, down (1%)

4Q 2011 Price/Mix Volume Fuel 4Q 2012

$2,797 $2,684 $105 $23 $15

4Q 2012 Revenue $ in Millions & y-o-y Percent Change Components of Revenue Change $ in Millions

Railway Operating Revenue

Fourth Quarter 2012 vs. 2011

Merchandise $1,443 +4% Coal $657 (23%) Intermodal $584 +5%

4Q 2012 Volume (000’s) & y-o-y Percent Change

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500 1,000 1,500 2,000 4Q 2011 4Q 2012 Coal Merchandise Intermodal +1% +4% (13%) 1,806.7 1,792.1

Coal down (13%) (16%) decline in Utility (17%) decline in Domestic Met 0.5% rise in Export Intermodal up 4% 9% gain in Domestic more than

• ffset (1%) decline in

International Merchandise up 1% Strength in Chemicals and Automotive more than offset decline in MetCon

Total volume down (1%)

Railway Volume

Fourth Quarter 2012 vs. 2011

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224.6 63.0 47.3 17.2 50 100 150 200 250 Utility Export Dom Met Ind

Drivers Utility Competition from natural gas, and year-over-year stockpile reduction Export Increase in steam coal from IL Basin Baltimore up 8% Lamberts Point down (10%) Domestic Met Weak raw steel production and closure of RG Steel

Coal Market

Fourth Quarter 2012 vs. 2011

Weak demand across most markets resulted in overall volume decline of (13%) Revenue: $657 Million, down (23%) RPU: $1,867, down (11%)

Utility 64% Export 18% Dom Met 13% Ind 5%

Percent of Total 4Q Volume Units (000’s) (16%) +0.5% (17%) (12%)

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440.7 278.9 73.7 72.5 100 200 300 400 500 Domestic Int'l Premium Triple Crown

Intermodal Market

Fourth Quarter 2012 vs. 2011

9% (1%) (1%) (3%)

Revenue: $584 Million, up 5% RPU: $674, up 2%

Drivers Domestic Continued strong highway conversions International Negative comp partially offset by other gains across customer base Premium Use of larger equipment in key lanes

• ffsets increases within LTL segment

Triple Crown Equipment conversion impact

Robust Domestic growth leads to 4% overall volume gain

Domestic 51% Int’l 32% Prem 9%

Units (000’s) Percent of Total 4Q Volume

TCS 8%

158.4 150.9 95.3 94.1 75.5 50 100 150 200 MetCon Ag Chem Auto Paper

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Drivers MetCon Lower iron & steel shipments driven by RG steel closure and fewer natural gas drilling materials Agriculture Higher shipments of soybeans and feed

• ffset decline in corn and ethanol

Chemicals Continued growth in crude oil Automotive Increased light vehicle production Paper Improvement in housing related goods offset decline in waste

Merchandise Market

Fourth Quarter 2012 vs. 2011

(4%) 0.3% 9% 6% 1%

Revenue: $1.4 Billion, up 4% RPU: $2,513 up 2% Strong gains in Chemicals and Automotive

Units (000’s) Percent of Total 4Q Volume

MetCon 28% Ag 26% Chem 17% Auto 16% Paper 13%

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Business Outlook

• Utility coal impacted by

reduced demand for electricity, competition from natural gas and higher stockpiles

• Softer domestic

metallurgical market to support steel production

• Weak demand in

European market for both met and steam coal, marginal improvement in Asia

• Continued opportunities

for highway conversion

• New Intermodal service

lanes ahead as new corridor terminals open

• Growth with international

shipping partners

• Expansion in premium

market segment

Coal Intermodal Merchandise

• Project growth in crude
• il, increased plastics due

to low-cost feedstock

• Gains in steel, but weaker

aggregate market

• Continued automotive

growth despite tougher comps

• Reduced U.S. corn and

soybean crop

• Improved housing &

related construction materials market

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Thank You