Eastern Railroad Discussion > CSX: Operating better than at any time in history

So says CEO Jim Foote at the Baird investment conference. 

I was interested to see that he ends with a focus on free cash flow from operations.  FCF is a performance measure coming back into vogue.  Unlike earnings per share, FCF looks at what the business produced from its operations.  In contrast, EPS is affected by tax loss carry forwards, investment credits, stock buy backs, depreciation, interest paid on debts, etc. That's a highly simplified description, but looking at the railroad's business, and not the accounting / finance stuff around it could be a healthy sign.

https://seekingalpha.com/article/4307770-csx-csx-presents-baird-global-industrial-conference-slideshow

The less work you actually do, the easier it is to have a well run organization.  If I could get by in my job doing just one thing a day, I could probably do it better than its ever been done.

junctiontower Wrote:
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> The less work you actually do, the easier it is to
> have a well run organization.  If I could get by
> in my job doing just one thing a day, I could
> probably do it better than its ever been done.


Agreed...

I swear, some of these folks need to go into politics..!!??

Posted from Android

My how they lie....

I wonder what the latest CSX customer survey would say about this?

irhoghead Wrote:
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> I wonder what the latest CSX customer survey would
> say about this?

For some unknown reason, that's rarely mentioned in presentations like this

CSX602 Wrote:
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> And yes, it is foolish, and leads to issues down
> the road... but it is the way capitalism has
> always been.   

Except that it is now COMPLETELY OUT OF CONTROL....??!!!

CSX602 Wrote:
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> ... because it isn't relevant to the short term
> goals of the shareholders looking for more
> earnings now...
>
> And yes, it is foolish, and leads to issues down
> the road... but it is the way capitalism has
> always been.   
right about capitalism but years ago the health of the business came first....

Time to regulate the railroads similar to public utilities.
Otherwise the railroad system will turn into either an Enron or PG&E.
 

Englewood Wrote:
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> Time to regulate the railroads similar to public
> utilities.
> Otherwise the railroad system will turn into
> either an Enron or PG&E.
>  

There's actually a model in the way oil and gas pipelines are regulated. They sell volume / time / end points to customers. Those customers can use their slots, or  re-sell the space to somebody else.  The incentive is to keep the pipes running at full capacity, collect tolls, and keep the subscription book full.

Unlike the railroads, where tracks are unused for long periods of time in many places.

Lackawanna484 Wrote:
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> There's actually a model in the way oil and gas
> pipelines are regulated. They sell volume / time /
> end points to customers. Those customers can use
> their slots, or  re-sell the space to somebody
> else.  The incentive is to keep the pipes running
> at full capacity, collect tolls, and keep the
> subscription book full.
>
> Unlike the railroads, where tracks are unused for
> long periods of time in many places.

That sounds an awful lot like the open access I favor.

TAW

TAW Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
>
> > There's actually a model in the way oil and gas
> > pipelines are regulated. They sell volume / time
> /
> > end points to customers. Those customers can
> use
> > their slots, or  re-sell the space to somebody
> > else.  The incentive is to keep the pipes
> running
> > at full capacity, collect tolls, and keep the
> > subscription book full.
> >
> > Unlike the railroads, where tracks are unused
> for
> > long periods of time in many places.
>
> That sounds an awful lot like the open access I
> favor.
>
> TAW

Yes, it does.

From "Wall Street's" standpoint, it maximizes revenue by keeping the pipes full and moving.  But, it also requires the operator to keep the pipe in a high state of repair.  If the pipe fails,, etc, the operator owes $$$ to the shippers.

Federal pipe regulation has a lot to recommend it.  As does the similar Interconnect mechanism for moving electricity around the country.  Differentiated from company owned lines like PG&E...

irhoghead Wrote:
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 I wonder what the latest CSX customer survey would  say about this?

Just cherry pick the A+ responses, if any, and sh-- can the rest.

Seventyfive Wrote:
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> irhoghead Wrote:
> --------------------------------------------------
> -----
>  I wonder what the latest CSX customer survey
> would  say about this?
>
> Just cherry pick the A+ responses, if any, and
> sh-- can the rest.


The remaining customers may be getting better service. Key word is remaining.

Posted from iPhone