Annual Report

2013

annual

report

CSX has built the most diverse business mix in its history

C S X 2013 AN N U AL R E PO R T

DEAR SHAREHOLDERS:

I write to you during an exciting and transformative time at CSX.

C S X

2013

AN N U AL

R E PO R T

In the last decade CSX has increased operating income nearly 600 percent and earnings per share from continuing operations nearly 2,000 percent, while improving the operating ratio by more than 2,200 basis points. As a result, CSX shareholders have seen a total return on their investment of nearly 500 percent, easily outperforming the broader market. At the same time, shareholders have benefitted from more than $8 billion in share repurchases – nearly a third of outstanding CSX shares – and a dividend that increased 11 times in 8 years for a 30 percent compound annual growth rate. These returns were accomplished even in the face of a transformative five-year period that included

the collapse of the housing market, a financial crisis, a global recession, and major shifts in energy markets that now favor natural gas over coal.

Growth

As I mentioned in last year’s annual report letter, CSX anticipated the transition in the coal markets and accelerated strategies and investments to help manage through that change. In the process, the company built the most diverse business mix in its history – one that is positioned to capitalize on trends in the global supply chain, remain resilient in the face of worldwide market forces, and drive sustainable, long-term growth.

C S X

2013

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R E PO R T

Revenue

($ in millions)

Operating Income

($ in millions)

Net Earnings Per Share

(assuming dilution)

Dividends Per Share

C S X

2013

AN N U AL

R E PO R T

Low-cost energy is stimulating the expansion and competitiveness of American businesses

C S X

2013

AN N U AL

R E PO R T

In 2013, merchandise and intermodal shipments increased to 82 percent of CSX’s business,...