CSX Corp.

Overview Key strengths Key risks One of the major U.S. railroads with an extensive route network in the Eastern U.S., and a fairly diverse traffic base related to commodities transported and customers served Price competition from other railroads and trucking companies for the transportation of certain commodities Strong operating performance and free cash flow generation Increased level of share repurchases in recent years Relatively stable credit metrics despite pandemic-related interruptions The U.S. economic recovery has led to greater demand for freight transportation in 2021, with higher energy prices, improving industrial production, and a surge of container imports all benefiting CSX. Tight trucking capacity has also benefited the business, as higher spot-market pricing for truck transportation makes rail more competitive on

...We believe stronger freight transportation demand will benefit CSX's operating results, but supply chain disruptions will limit growth. The U.S. economic recovery has led to greater demand for freight transportation in 2021, with higher energy prices, improving industrial production, and a surge of container imports all benefiting CSX. Tight trucking capacity has also benefited the business, as higher spot-market pricing for truck transportation makes rail more competitive on certain, generally longer, hauls. Nonetheless, we believe supply chain disruptions and a difficult labor market will somewhat limit revenue and volume growth....

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