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John P. Rathbone Executive Vice President Finance and Chief - - PowerPoint PPT Presentation
John P. Rathbone Executive Vice President Finance and Chief - - PowerPoint PPT Presentation
Third Quarter 2012 Results John P. Rathbone Executive Vice President Finance and Chief Financial Officer Operating Results Third Quarter 2012 vs. 2011 ($ Millions) Third Qtr Third Qtr (Unfavorable) 2012 2011 $ % Railway operating revenues
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Operating Results
Third Quarter 2012 vs. 2011 ($ Millions)
Third Qtr Third Qtr (Unfavorable) 2012 2011 $ % Railway operating revenues $ 2,693 $ 2,889 $ (196) (7%) Railway operating expenses 1,962 1,951 (11) (1%) Income from railway operations $ 731 $ 938 $ (207) (22%) Railway operating ratio 72.9 67.5 (5.4) (8%)
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Net Increase $11 Million / 1%
- $12
+ $13 + $16 Depreciation
- $6
$-- Purchased services and rents Materials and other Compensation and benefits Fuel
Railway Operating Expense Analysis
Third Quarter 2012 vs. 2011 ($ Millions)
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Net Increase $11 Million / 1%
- $12
+ $13 + $16 Depreciation
- $6
$-- Purchased services and rents Materials and other Compensation and benefits Fuel
Railway Operating Expense Analysis
Third Quarter 2012 vs. 2011 ($ Millions)
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Net Increase $11 Million / 1%
- $12
+ $13 + $16 Depreciation
- $6
$-- Purchased services and rents Materials and other Compensation and benefits Fuel
Railway Operating Expense Analysis
Third Quarter 2012 vs. 2011 ($ Millions)
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Fuel Expense Analysis
Third Quarter 2012 vs. 2011 ($ Millions)
Third Qtr 2011 Third Qtr 2012 Lower Consumption Higher Prices $379
- $10
+ $4 $385
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Net Increase $11 Million / 1%
- $12
+ $13 + $16 Depreciation
- $6
$-- Purchased services and rents Materials and other Compensation and benefits Fuel
Railway Operating Expense Analysis
Third Quarter 2012 vs. 2011 ($ Millions)
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Compensation and Benefits Analysis
Third Quarter 2012 vs. 2011 ($ Millions) (Decrease) Increase
Incentive and stock compensation $ (19) Employee activity levels (13) Pay rates 13 Pension and post-retirement medical 6 Other 1 Net decrease $ (12)
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Other Income - Net
Third Quarter 2012 vs. 2011 ($ Millions)
Third Qtr Third Qtr (Unfavorable) Favorable 2012 2011 $ % Gains on the sale of property $ 2 $ 30 $ (28) (93%) Coal royalties 18 23 (5) (22%) Corporate-owned life insurance 8 (2) 10
- All other
5 9 (4) (44%) Other income - net $ 33 $ 60 $ (27) (45%) Interest expense on debt $ 124 $ 114 $ (10) (9%)
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Income Before Income Taxes
Third Quarter ($ Millions)
Change vs. Prior Period: - 28% $640 $884
2011 2012
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Income Taxes
Third Quarter ($ Millions)
Change vs. Prior Period: - 28% $238 $330
2011 2012
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Net Income and Diluted Earnings per Share
Third Quarter ($ Millions except per share)
Net Income Diluted Earnings per Share
$402 $554 $1.59 $1.24 Change vs. Prior Period: - 27% Change vs. Prior Period: - 22%
2011 2012 2011 2012
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Cash Flows and Related Balances
First Nine Months 2012 vs. 2011 ($ Millions)
2012 2011 Source (Use) Cash from operating activities $ 2,476 $ 2,764 $ (288) Property additions 1,522 1,433 (89) *Free cash flow $ 954 $ 1,331 $ (377) Proceeds from borrowings – net $ 1,291 $ 396 $ 895 Share repurchases 1,150 1,611 461 Dividends 467 432 (35) Debt repayments 358 592 234
*Please see reconciliation to GAAP posted on our web site.