Canadian Pacific Kansas City Ltd (CP) 2024 Q1 法說會逐字稿

Good morning. My name is James, and I will be your conference operator today. At this time, I'd like to welcome everyone to CPKC's First Quarter 2021 Earnings Conference Call. The slides accompanying today's call are available at investor.cpkcr.com. (Operator Instructions)

早安.我叫詹姆斯，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 CPKC 2021 年第一季財報電話會議。今天電話會議附帶的幻燈片可在 Investor.cpkcr.com 上取得。 （操作員說明）

I'd now like to introduce Chris de Bruyn, Vice President, Capital Markets, to begin the conference.

現在我想請資本市場副總裁 Chris de Bruyn 開始會議。

Thank you, James. Good morning, everyone, and thank you for joining us today. Before we begin, I want to remind you this presentation contains forward-looking information. Actual results may differ materially. The risks, uncertainties and other factors that could influence actual results are described on Slide 2 in the press release and in the MD&A filed with Canadian and U.S. regulators. This presentation also contains non-GAAP measures outlined on Slide 3.

謝謝你，詹姆斯。大家早安，感謝您今天加入我們。在開始之前，我想提醒您本簡報包含前瞻性資訊。實際結果可能存在重大差異。新聞稿的幻燈片 2 以及向加拿大和美國監管機構提交的 MD&A 中描述了可能影響實際結果的風險、不確定性和其他因素。本簡報也包含投影片 3 中概述的非 GAAP 衡量標準。

Please note, in addition to our regular quarterly financials, their supplemental Q1 combined revenue and operating performance will be available at investors.cpkcr.com. Which some of today's discussion will focus on.

請注意，除了我們的常規季度財務數據外，他們的補充第一季合併收入和營運業績也將在 Investors.cpkcr.com 上提供。今天的一些討論將重點放在其中。

With me here today is Keith Creel, our President and Chief Executive Officer; Nadeem Velani, our Executive Vice President and Chief Financial Officer; John Brooks, our Executive Vice President and Chief Marketing Officer; and Mark Redd, our Executive Vice President and Chief Operating Officer. The formal remarks will be followed by Q&A. In the interest of time, we'd appreciate if you limit your questions to one.

今天和我在一起的是我們的總裁兼執行長 Keith Creel； Nadeem Velani，我們的執行副總裁兼財務長；約翰‧布魯克斯 (John Brooks)，我們的執行副總裁兼首席行銷長；以及我們的執行副總裁兼營運長馬克‧雷德 (Mark Redd)。正式發言後將進行問答。為了節省時間，如果您將問題限制為一個，我們將不勝感激。

It is now my pleasure to introduce our President and CEO, Mr. Keith Creel.

現在我很高興向大家介紹我們的總裁兼執行長 Keith Creel 先生。

Good morning. Thanks, Chris. Listen, before we get to the results, think it's only appropriate on behalf of our CPKC family to extend our heartfelt prayers and condolences to Jim Foote's family and friends. As many of you know, we lost him last week, many of us in this industry have had the honor to serve the Jim during his multiple decades of service to this industry. I can tell you myself personally I'm going to cherish the memories and the experiences. He was a wonderful man, a dedicated man. Dedicated to this industry, dedicated to the railroads that he worked for and the people that we serve with. If you knew him, there are a couple of things that are undeniable about him. He loved his friends, he loved his family and he loved the companies that he served and have led this industry. It's a man lost too soon. I can tell you, he left it better. The memories and experiences will not be forgotten, nor will Jim, nor will his impact on this industry. So all the best, again, to his family. Payers and condolences.

早安.謝謝，克里斯。聽著，在我們得到結果之前，我認為只有代表我們 CPKC 家族向 Jim Foote 的家人和朋友致以衷心的祈禱和哀悼才合適。你們很多人都知道，我們上週失去了他，我們這個行業的許多人都有幸在吉姆為這個行業服務的幾十年中為他服務。我可以親自告訴你，我會珍惜這些回憶和經驗。他是一個很棒的人，一個奉獻的人。致力於這個行業，致力於他所工作的鐵路以及與我們一起服務的人們。如果你了解他，你會發現他有一些不可否認的事情。他愛他的朋友，他愛他的家人，他愛他所服務並領導這個行業的公司。這是一個過早迷失的人。我可以告訴你，他留下的更好。這些記憶和經驗不會被忘記，吉姆也不會被忘記，他對這個行業的影響也不會被忘記。再次祝福他的家人一切順利。付款人和哀悼。

So with that said, let's -- I want to thank you for joining us on the call today. So we get to share our results. As I always will, I want to start my comments thinking -- the 20,000 strong family of railroaders that enable the results that we can share today.

話雖如此，我要感謝您今天加入我們的電話會議。所以我們可以分享我們的結果。正如我一貫所做的那樣，我想以 20,000 名強大的鐵路人大家庭為起點來思考我們今天能夠分享的成果。

As you're all aware, we just celebrated our 1-year anniversary just last week of this historic combination. We're here to celebrate actually today in Calgary, another historic event. We're going to launch our final spike steam tour this afternoon. So super exciting day in Calgary after we get to share these results and do our AGM, we get to celebrate with our employees and start this historic and iconic trip across all 3 nations. So for the next probably 35, 40 days, we're going to get to spend time and thank the communities that we operate in and through all the way from Calgary down to Mexico City.

眾所周知，我們上週剛慶祝了這一歷史性組合的一周年紀念日。今天我們實際上是在卡加利慶祝另一個歷史性事件。我們將於今天下午啟動最後一次《Spike Steam》之旅。在卡加利分享這些結果並召開年度股東大會之後，我們在卡加利度過了超級激動人心的一天，我們與員工一起慶祝，並開始了跨越所有三個國家的歷史性和標誌性之旅。因此，在接下來的 35、40 天裡，我們將花時間感謝我們從卡加利一直到墨西哥城運營的社區。

So I thank the employees, again, that have been specifically involved in enabling this creation, this vision we created 2 years ago with the culmination of the launch today. So thank you for that. And I hope many of you across this network will have a chance to participate in that.

因此，我再次感謝那些專門參與實現這項創作的員工，他們是我們兩年前創建的這個願景，今天的發布達到了頂峰。非常感謝你的幫忙。我希望這個網絡中的許多人都有機會參與其中。

So looking back at this last year of our favorite story, I'd tell you, I can't be more pleased with the progress. We're delivering on the commitments we made to create competition. We're delivering a safe and efficient service, and we're expanding our service contingently. We're creating new and expanded customer relationships over the new markets that we're creating, collaborating, that is only enabled because of this historic combination. I'm pleased with the results we produced in the quarter. It's been a strong start to the year from an RTM and an operational perspective. Yes, it was a tough January, but I can tell you, Mark, and the operations team recovered quickly, and the bonds have exceeded the expectations that we provided during our Q4 earnings call.

因此，回顧去年我們最喜歡的故事，我可以告訴你，我對進展感到非常滿意。我們正在兌現創造競爭的承諾。我們正在提供安全且有效率的服務，並且我們正在有條件地擴展我們的服務。我們正在我們正在創造、合作的新市場上建立新的、擴大的客戶關係，而這種歷史性的結合才得以實現。我對本季所取得的成果感到滿意。從 RTM 和營運角度來看，今年是一個良好的開端。是的，這是一個艱難的一月，但我可以告訴你，馬克，營運團隊很快就恢復了，而且債券超出了我們在第四季度財報電話會議上提供的預期。

So specific to the results, the first quarter produced revenues of $3.5 billion, which was an increase of 2%, an operating ratio of 64%, which is about 50 bps increased versus last year, core EPS of $0.93, an increase of 3%. Despite a challenging start from the year, the volumes wind up 1% for the quarter.

具體到業績，第一季營收35億美元，成長2%，營運率為64%，比去年成長約50個基點，核心每股收益0.93美元，成長3% 。儘管今年開局充滿挑戰，但本季銷量仍成長了 1%。

On the operating performance, I'm extremely pleased with how the network bounced back from the January challenges and the resiliency that the team displayed, the momentum that we created and carried in the quarter with strong gains across the network and speed dwell on locomotive productivity. The improvements were pronounced in Mexico, where we continue to see large improvements across our operating metrics. Several of the key metrics that we follow internally have improved significantly in Mexico this quarter. Car Miles per Car Day, locomotive productivity, both up over 20% year-over-year.

在營運績效方面，我對網路如何從一月份的挑戰中反彈以及團隊表現出的彈性、我們在本季度創造和保持的勢頭以及整個網路的強勁增長和對機車生產力的速度關注感到非常滿意。這些改進在墨西哥尤為明顯，我們的營運指標持續取得巨大改善。本季度，我們內部遵循的幾個關鍵指標在墨西哥有了顯著改善。每車日行駛里程、機車生產率均較去年同期成長超過 20%。

Active cars online down 15%, dwell down productivity improving. The gains we've made in Mexico, the improved velocity, they've allowed us to optimize our asset base. We've been able to park assets. We've been able to redeploy as many as 60 locomotives in fact, during the quarter to other parts of the network to address winter weather and serve stronger-than-expected demand. It's a huge credit to the operating team demonstrating the power of a true precision scheduled railroading operating model. In fact, I think it's better said at CPKC as PSR Prime.

線上活躍汽車數量下降 15%，實際生產效率提高。我們在墨西哥的成果和速度的提高，使我們能夠優化我們的資產基礎。我們已經能夠停放資產。事實上，本季我們已經能夠將多達 60 輛機車重新部署到網路的其他部分，以應對冬季天氣並滿足強於預期的需求。這對營運團隊來說是一個巨大的榮譽，展示了真正的精確調度鐵路運營模式的力量。事實上，我認為在 CPKC 上稱為 PSR Prime 更好。

And importantly, these improvements continue to come at a time when in Mexico, we're delivering an all-time highly GTM performance. So management changed, as you would have seen in March, we made a change to our leadership team in releasing John Orr from his commitments to CPKC. Again, I'd like to thank John for his contributions and the impact of the leadership that he had. As a leader, I believe it's your challenge to leave it better and John did that. He did that in the service to the KCS while the company was in trust as well as the CPKC until its departure just last month. We're fortunate to have an extremely talented and deep bench of PSR railroaders on our team. So the decision to release John was not an easy one, but it was made possible by the strength and the depth of the teams we actually have a CPKC.

重要的是，這些改進持續發生的同時，我們在墨西哥正在提供前所未有的高 GTM 性能。因此，管理層發生了變化，正如您在 3 月看到的那樣，我們對領導團隊進行了更改，解除了約翰·奧爾 (John Orr) 對 CPKC 的承諾。我要再次感謝約翰的貢獻以及他的領導力所產生的影響。身為領導者，我相信你面臨的挑戰是讓事情變得更好，而約翰做到了。他在為 KCS 服務期間做到了這一點，而該公司和 CPKC 都受託管，直到上個月 CPKC 離開。我們很幸運，我們的團隊中擁有一群才華橫溢、實力雄厚的 PSR 鐵路人員。因此，釋放約翰的決定並不容易，但我們實際上擁有 CPKC 的團隊的實力和深度使得這一決定成為可能。

The plan was always for the Mexican operations to eventually report into Mark as our COO and with a strong performance in Mexico that I've mentioned, the experienced team that we have in place, it just simply made sense to accelerate that plan. So credit to the entire operations team since John's departure, they haven't missed a beat. We're continuing to execute, drive improvements and provide great customer service to our customers.

該計劃始終是讓墨西哥業務最終向作為我們的首席營運官的馬克匯報，並且由於我提到的墨西哥業務的出色表現以及我們擁有的經驗豐富的團隊，加速該計劃是有意義的。自從約翰離開以來，整個營運團隊都表現出色，他們沒有錯過任何一個機會。我們將繼續執行、推動改進並為客戶提供優質的客戶服務。

So in closing, I'm happy to start -- I'm happy with the start that we've had to the year our performance so far in the second quarter as well. We're poised to be the most relevant rail network in North America uniting a continent, adding competition in the industry and delivering new options along with safe and efficient service to our customers.

最後，我很高興開始——我對今年第二季迄今為止的表現感到滿意。我們準備成為北美最相關的鐵路網絡，將整個大陸團結起來，增加行業競爭，並為我們的客戶提供新的選擇以及安全和高效的服務。

So with that said, I'm going to hand it over to Mark to speak to the operating performance. John is going to bring some color to the markets and then Nadeem will close, elaborating on the numbers before we open it up to questions. Over to you, Mark.

話雖如此，我將把它交給馬克來談談經營績效。約翰將為市場帶來一些色彩，然後納迪姆將結束發言，在我們提出問題之前詳細闡述數據。交給你了，馬克。

All right. So thank you, Keith, and good morning. I'm extremely proud of the operating team produced this quarter. I'd like to thank them for their continued hard work delivering safe or low for service. Throughout the quarter, I spent a great deal of time on the network, and I'm pleased with the level of talent and dedication here at CPKC. I'd like to recognize the Freeport terminal as well. They were named CPKC 2023 terminal of the year. This terminal has been executing at extremely high level. And having spent time earlier in my career at this terminal, I was very pleased to recognize this team for their outstanding achievement.

好的。謝謝你，基思，早安。我對本季組成的營運團隊感到非常自豪。我要感謝他們持續努力提供安全或低價的服務。整個季度，我在網路上花費了大量時間，我對 CPKC 的人才水平和奉獻精神感到滿意。我也想認識自由港碼頭。它們被評為 CPKC 2023 年度終端。該終端一直在極高的水平上執行。在我職業生涯的早期，我曾在這個航站樓度過過一段時間，我很高興能認可這個團隊的傑出成就。

Also spent time in Mexico this quarter. We have had a strong dedicated team experienced railroaders. And as Keith noted we're continuing to drive strong sustainable improvements.

本季還在墨西哥度過了一段時間。我們擁有一支強大、敬業、經驗豐富的鐵路人員團隊。正如基斯所指出的，我們將繼續推動強有力的永續改進。

Now looking at the quarter, thanks to the team's collective efforts. We made a quick full recovery of extended cold weather in January, serving very strong volumes in the Western corridor and also an extreme high level record GTMs in Mexico, while posting strong year-over-year operating metrics.

現在看這個季度，感謝團隊的集體努力。我們在 1 月迅速全面恢復了持續的寒冷天氣，在西部走廊的運輸量非常強勁，在墨西哥的 GTM 也創下了極高的記錄，同時發布了強勁的同比運營指標。

And looking at the metrics this morning, locomotive productivity up 8%, average train speed up 13% and our dwell is 10% down, all demonstrates a fluid network. Our fuel efficiency declined 2%, largely due to the weather earlier in the quarter -- in the quarter, but I expect this to improve throughout the year. So looking at safety this morning, the FRA personal injury is up 3% year-over-year at 1.15%. FRA train accident still leading the industry at the 0.89, up from 0.71, 1 year ago. While we strive for expected improvement each quarter, safety and the net ranging journey.

從今天早上的指標來看，機車生產率提高了 8%，火車平均速度提高了 13%，而我們的停留時間下降了 10%，所有這些都表明網路是流暢的。我們的燃油效率下降了 2%，主要是由於本季早些時候的天氣，但我預計這一情況將在全年有所改善。因此，從今天早上的安全情況來看，FRA 人身傷害較去年同期上升 3%，達到 1.15%。法蘭克福火車事故事故發生率仍領先業界，為 0.89，高於一年前的 0.71。雖然我們努力實現每季的預期改進，但安全性和淨測程旅程。

Our focus remains on building an alliance safety culture, which is key to maintaining CPKC's industry-leading safety record. Notably, we've rolled out Home Safe across the KCS network, and we continue to do so in Mexico as well. So as I look at Mexico, we're advancing some of the key initiatives that we have identified last year to improve productivity and capacity. We are finding opportunities to streamline our operations during the quarter, we were able to shut down switching operations at (inaudible) Yard. We're also focused on improving cycle times, streamlining operations for both commodities and customers. This is an area where we've seen success so far, but we're also freeing up locomotives and equipment and we can use in other parts of the network so we can create more synergies and handle more load.

我們的重點仍然是建立聯盟安全文化，這是保持 CPKC 產業領先安全記錄的關鍵。值得注意的是，我們已經在 KCS 網路上推出了 Home Safe，並且我們將繼續在墨西哥這樣做。因此，當我觀察墨西哥時，我們正在推動去年確定的一些關鍵舉措，以提高生產力和能力。我們正在尋找在本季度簡化營運的機會，我們能夠關閉（聽不清楚）堆場的轉換操作。我們也致力於縮短週期時間，簡化商品和客戶的營運。到目前為止，這是我們已經取得成功的領域，但我們也釋放了機車和設備，我們可以在網路的其他部分使用，這樣我們就可以創造更多的協同效應並處理更多的負載。

Looking at capital, the plan we're (inaudible) remain focused on growth and safety. In the quarter, we serviced 3 more new sites as part of our $275 million capital -- merger capital commitment. We've also in service to sidings in Mexico to help with capacity and fluidity.

就資本而言，我們的計劃（聽不清楚）仍然關注成長和安全。本季度，我們為另外 3 個新站點提供了服務，作為我們 2.75 億美元資本（合併資本承諾）的一部分。我們也為墨西哥的支線提供服務，以幫助提高容量和流動性。

If we look at the Laredo rig 5% completed at this point. We remain on target to be in the closed out by the end of the year. All of these projects will support growth and further improvement in the network.

如果我們看看拉雷多鑽孔機此時已完成 5%。我們的目標仍然是在年底前完成。所有這些項目都將支持網路的成長和進一步改進。

In summary, we had restarts to the year and the entire network is in great shape. We're in a good place from an asset and resource perspective, and the team is line-focusing, providing the service excellence. To generate industry-leading growth.

總的來說，今年我們已經重啟了，整個網路狀況良好。從資產和資源的角度來看，我們處於有利位置，並且團隊專注於業務，提供卓越的服務。實現業界領先的成長。

And with that, I'll pass it over to John.

接下來，我會把它交給約翰。

All right. Thank you, Mark, and good morning, everyone. So with the full year as a combined company under our belt, I'm extremely pleased with the progress we've made so far and all the opportunities I still see ahead of us. We've built on our momentum from Q4. And despite some of the early weather challenges we had to start the year, we have started the year strong, and we are gaining momentum.

好的。謝謝你，馬克，大家早安。因此，作為一家合併後的公司，我對我們迄今為止所取得的進展以及我仍然看到的所有機會感到非常滿意。我們在第四季度的勢頭基礎上繼續發展。儘管我們在年初面臨一些天氣挑戰，但我們今年開局強勁，並且勢頭強勁。

Now looking at the results on a combined basis, we delivered freight revenue growth of 1%, on 1% RTM growth. This is slightly ahead of the flat to slightly down outlook for RTMs that we provided to the market in January.

現在看看綜合結果，我們的貨運收入成長了 1%，RTM 成長了 1%。這略高於我們 1 月向市場提供的 RTM 持平或略有下降的前景。

Since per RTM was flat year-over-year with strong pricing offset by a 3% fuel headwind, along with negative mix. Carloads on the quarter were down 3%, and I fully expect carloads to continue to lag RTMs. This is a result of our network unlocking longer length of haul as shippers take advantage of our seamless 3 country franchise, delivering RTM growth in average length of haul on the quarter up 8% versus last year.

由於每 RTM 同比持平，強勁的定價被 3% 的燃油逆風以及負面組合所抵消。本季的貨運量下降了 3%，我完全預計貨運量將繼續落後於 RTM。這是由於托運人利用我們無縫的 3 個國家特許經營權，我們的網路開啟了更長的運輸距離，使得本季度的 RTM 平均運輸距離比去年增長了 8%。

In addition, we've also seen lower margin short-haul intermodal business running between Mexico and the border, shift off our network opening up further capacity for growth in our strategic long-haul lanes.

此外，我們還看到墨西哥和邊境之間的利潤率較低的短途多式聯運業務轉移了我們的網絡，為我們戰略性長途航線的增長提供了進一步的能力。

Now taking a -- closer look at our first quarter revenue performance, I'll speak to the FX adjusted results on a comparison versus CPKC had the combination occurred in 2023.

現在，仔細看看我們第一季的營收表現，我將談談與 2023 年合併發生的 CPKC 進行比較的外匯調整結果。

Starting with bulk, grain revenues were up 2% on 1% RTM growth. U.S. grain volumes grew 19% and over prior year. Our franchise is benefiting from strong export corn shipments to the P&W and Alberta, along with more shipments of wheat and soybeans to Mexico, which is a new area of growth for CPKC.

從散裝開始，糧食收入成長 2%，RTM 成長 1%。美國糧食產量比上年增加 19%。我們的特許經營權受益於對 P&W 和艾伯塔省的玉米出口強勁，以及對墨西哥的小麥和大豆出口增加，墨西哥是 CPKC 的新增長領域。

Canadian grain volumes were down 15% year-over-year. Volumes decreased as a result of a weaker 2023 harvest in our draw territory. However, they still came in better than anticipated as on-farm supplies remain stronger given softer shipping in the fall peak. So while we may see better-than-expected volumes this summer, we still expect overall year-over-year compares in Canadian grain to be a headwind until we get to the new crop. I also should note that the strong performance in our U.S. grain franchise essentially offset the Canadian grain headwind. And this is a great example of how this combined network is adding resiliency within our book of business.

加拿大穀物產量年減 15%。由於我們抽籤地區 2023 年收成較弱，銷量下降。然而，由於秋季高峰運輸疲軟，農場供應仍然強勁，因此它們的表現仍然好於預期。因此，雖然我們今年夏天的產量可能好於預期，但我們仍然預計，在新作物上市之前，加拿大穀物的整體同比情況將是一個阻力。我還應該指出，我們美國穀物特許經營權的強勁表現基本上抵消了加拿大穀物的逆風。這是一個很好的例子，說明了這個組合網路如何增加我們業務的彈性。

Moving on to potash. Revenues were up 4% on a 2% volume growth. Despite a very slow start in January, we rebounded quickly and ended the quarter with growth driven by solid export and domestic shipments. We are well positioned for solid potash growth in 2024 as demand remained steady, and we lap the comps from Canpotex outage at their Portland terminal that occurred from April to December of last year.

轉向鉀肥。銷量成長 2%，營收成長 4%。儘管一月份開局非常緩慢，但我們很快就反彈，並在強勁的出口和國內出貨量的推動下實現了本季的成長。由於需求保持穩定，我們有能力在 2024 年實現鉀肥的穩健增長，並且我們對去年 4 月至 12 月 Canpotex 波特蘭碼頭發生的停運進行了比較。

Coal revenue and volume declined 7%. Cold weather in January negatively impacted tech production and exports while lower natural gas prices weakened demand for U.S. coal. We expect a good run with tech as we look to claw back tonnage that didn't move in Q1.

煤炭收入和銷量下降 7%。一月份的寒冷天氣對科技生產和出口產生了負面影響，而天然氣價格下跌削弱了對美國煤炭的需求。我們預計科技股將取得良好表現，因為我們希望收回第一季沒有變化的噸位。

Now moving on to merchandise. Energy Chemicals Plastics revenue and volume grew 2%. The volume growth in the quarter was driven by higher fuel oil, DRU shipments and plastics. This strength was partially offset by multiple customer outages we faced, resulting from the cold weather. Looking at this portfolio, we are excited about the synergies that we are capturing, particularly with new wins in plastics, renewable diesel and refined fuels as we connect the markets between Alberta and the Gulf Coast in Mexico.

現在轉向商品。能源化學品塑膠業務的收入和銷售量成長了 2%。本季銷售成長是由燃料油、DRU 出貨量和塑膠產量增加所推動的。這種優勢被我們因寒冷天氣導致的多次客戶中斷所部分抵消。看看這個產品組合，我們對我們正在捕捉的協同效應感到興奮，特別是當我們連接艾伯塔省和墨西哥灣沿岸之間的市場時，我們在塑料、可再生柴油和精煉燃料方面取得了新的勝利。

Looking forward, with customer production now stabilized at our facilities on our network and the ongoing ramp-up of synergy gains, we are set up for a solid year in ECP.

展望未來，隨著我們網路設施的客戶生產現已穩定，以及協同收益的不斷增加，我們已做好了 ECP 堅實一年的準備。

For Forest Products revenues were down 4% on flat volumes. Forest Products volumes were flat despite the broader economic headwinds we all face, and softening in the paper space. We had a record quarter in lumber driven by strong synergy conversions with new line haul solutions connecting Canadian producers with the strong demand in the Texas market.

林產品營收年減 4%。儘管我們都面臨更廣泛的經濟逆風，紙質空間疲軟，但林產品銷售仍持平。由於新的線路運輸解決方案將加拿大生產商與德克薩斯州市場的強勁需求聯繫起來，強勁的協同轉換推動了我們的木材季度創紀錄。

The Metals, Minerals and Consumer Products revenue was down 1% on a 5% volume decline. Volumes in the quarter were largely impacted by weakness in frac sand to the Bakken and Permian Basins. This was partially offset by ongoing strong demand from our steel production.

金屬、礦產和消費品收入下降 1%，銷售量下降 5%。本季的銷售量很大程度上受到巴肯盆地和二疊紀盆地壓裂砂疲軟的影響。這部分被我們鋼鐵生產持續強勁的需求所抵消。

Automotive produced another record quarter with volumes up 8% and revenues up 10%. Despite this record performance, I was not pleased. Results came in well below our expectations due to numerous production holds for quality and parts availability. With those issues largely resolved, we expect to see growth in automotive continue to accelerate through Q3 and the rest of the year. I'm also very excited to have our new Dallas auto compound opening in June located at our Wylie terminal. This compound is part of our playbook that unlocks an entirely new supply chain model for the OEMs and giving them the service, reliability and capacity certainty like they've never seen before. I'm proud to report that this new compound is largely sold out and will handle many of the top-selling vehicles within the Texas market, including the vehicles built by our anchor tenant, General Motors.

汽車業再創歷史新季銷售成長 8%，營收成長 10%。儘管取得了創紀錄的表現，但我並不高興。由於品質和零件可用性方面的大量生產暫停，結果遠低於我們的預期。隨著這些問題基本上得到解決，我們預計汽車產業的成長將在第三季和今年剩餘時間內繼續加速。我也很高興我們的新達拉斯汽車基地將於 6 月在 Wylie 航站樓開業。這種化合物是我們劇本的一部分，為 OEM 開啟了全新的供應鏈模式，並為他們提供了前所未有的服務、可靠性和產能確定性。我很自豪地報告，這個新場地已基本售空，並將處理德克薩斯州市場上的許多最暢銷車輛，包括我們的主要租戶通用汽車製造的車輛。

On the intermodal side, revenue was down 1% on 7% volume growth. Starting with International Intermodal. Volumes were up 14% on strong growth through both the ports of Vancouver and Lazaro. Strength through Vancouver was driven by a return of volumes after the work stoppage last summer and some impacts from the red sea and potential looming East Coast labor disruptions. Although these stronger-than-forecasted volumes did drive some temporary congestion at the port, we successfully worked with our customers and the port to manage this excess volume. We are also encouraged by the ongoing trends at the Port of Lazaro Cardenas. Through February, TEUs through this terminal grew by over 40% year-over-year.

在多式聯運方面，收入下降了 1%，而運輸量增加了 7%。從國際聯運開始。由於溫哥華港和拉扎羅港的強勁增長，吞吐量增長了 14%。去年夏天停工後運量回升以及紅海和潛在的東海岸勞動力中斷的一些影響推動了溫哥華的強勁成長。儘管這些強於預期的吞吐量確實導致了港口的一些暫時擁堵，但我們成功地與客戶和港口合作來管理這一過剩的吞吐量。我們也對拉扎羅卡德納斯港的持續趨勢感到鼓舞。截至 2 月份，通過該碼頭的標準箱數量年增超過 40%。

In domestic intermodal, volumes were flat this quarter. Our Mexico Midwest Express cross-border service continues to perform extremely well with truck-like service across a safe, reliable border in Laredo. Growth on this flagship service has helped offset the shift in the short-haul business. And since February, we have seen weekly volumes grow by over 24%. We expect our density on this product to build through the year as we grow our volumes of reefer traffic between U.S. and Mexico and pending STB approval, we start up operations with [CSX] and Schneider from Texas and Mexico into the Southeast U.S.

在國內多式聯運方面，本季的貨運量持平。我們的墨西哥中西部快車跨境服務持續表現出色，在拉雷多提供安全、可靠的邊境，提供類似卡車的服務。這項旗艦服務的成長幫助抵消了短途業務的轉變。自 2 月以來，我們發現每週交易量增加了 24% 以上。我們預計，隨著我們在美國和墨西哥之間的冷藏運輸量的增加，以及在等待STB 批准的過程中，我們的產品密度將在今年內不斷增加，我們將與[CSX] 和施耐德一起開始從德克薩斯州和墨西哥進入美國東南部的業務。

So in closing, Q1 volumes came in better than expected and were off to a good start in Q2. Looking at the past 7 months, we've seen year-over-year volume growth in each month, excluding January. While we still have a headwind from Canadian grain, and we continue to be very cautious on the macro environment, our line of sight to synergies, self-help opportunities and a disciplined pricing approach remains a unique opportunity for CPKC. I'm pleased with what we have accomplished for our first year as a combined company, and I look forward to sharing continued progress with you as we go forward.

因此，最終，第一季的銷售量好於預期，並在第二季有了良好的開端。回顧過去 7 個月，我們發現除 1 月外，每個月的銷量均較去年同期成長。儘管我們仍然面臨來自加拿大穀物的阻力，並且我們繼續對宏觀環境保持非常謹慎的態度，但我們對協同效應、自助機會和嚴格定價方法的關注仍然對 CPKC 來說是一個獨特的機會。我對合併後公司第一年所取得的成就感到高興，並期待在我們前進的過程中與您分享持續的進步。

With that, I'll pass it to Nadeem.

這樣，我會將其傳遞給 Nadeem。

All right. Thanks, John, and good morning. So looking at the numbers. Our reported operating ratio was 67.4% and the core adjusted combined operating ratio came in at 64%. Earnings per share was $0.83, and core adjusted combined earnings per share was $0.93, up 3% year-over-year. As a reminder, these core adjusted earnings exclude the noncash impact of purchase accounting for the KCS merger, primarily related to D&A, along with interest expense and acquisition-related costs, which continue to gradually decline.

好的。謝謝，約翰，早安。所以看看數字。我們報告的營運率為 67.4%，核心調整後綜合營運率為 64%。每股收益為 0.83 美元，核心調整後合併每股收益為 0.93 美元，年增 3%。需要提醒的是，這些核心調整後收益不包括 KCS 合併購買會計的非現金影響（主要與 D&A 相關），以及利息支出和收購相關成本，這些成本繼續逐漸下降。

Similar to what we shared last quarter, our combined operating expenses illustrate the effects of the acquisition for the first quarter, is that the acquisition closed on January 1, 2022. I will speak to FX adjusted combined operating results in these prepared remarks.

與我們上季度分享的類似，我們的合併營運費用說明了收購對第一季的影響，即收購於2022 年1 月1 日完成。業績。

Now taking a closer look at our income statement. Reported operating expense is provided on Slide 13 and combined operating expenses on Slide 14, where I will focus my comments.

現在仔細看看我們的損益表。報告的營運費用在幻燈片 13 中提供，綜合營運費用在幻燈片 14 中提供，我將在幻燈片 14 中重點發表評論。

Excluding adjustments, Comp and benefits expense was [$676 million]. The increase was driven by wage and benefit inflation, along with a $23 million headwind from stock-based compensation. driven by the increase in share price over the course of the quarter.

不包括調整在內，薪資和福利費用為[6.76 億美元]。這一增長是由工資和福利通膨以及股票薪酬帶來的 2,300 萬美元阻力所推動的。受本季股價上漲的推動。

Stock comp amounted to a 70 basis point or $0.01 headwind on (inaudible). We also saw higher current service costs from our DB pension plan of $4 million due to a lower discount rate at year-end 2023. Looking to the rest of 2024, we continue to expect average head count to be roughly flat on a year-over-year basis.

股票比較達 70 個基點或 0.01 美元的逆風（聽不清楚）。由於 2023 年底折扣率較低，我們也發現 DB 退休金計畫的當前服務成本為 400 萬美元。

Fuel expense was $458 million, down 5%, the decline was primarily driven by $28 million or 6% decline in fuel price. Overall net fuel price was at $61 million drag to operating income in the quarter. Or about an 80 basis point impact to the OR. This amounted to a $0.05 headwind as well to core adjusted combined earnings on the quarter.

燃油費用為 4.58 億美元，下降 5%，下降主要是由於燃油價格下降 2,800 萬美元，即 6%。整體淨燃油價格拖累本季營業收入 6,100 萬美元。或對 OR 產生大約 80 個基點的影響。這相當於本季核心調整後合併收益 0.05 美元的阻力。

Materials expense was down 5%. The decline in the quarter was driven primarily by timing of track and locomotive maintenance as activity schedules across the legacy CP and legacy KCS network are aligned.

材料費用下降了 5%。本季下降的主要原因是軌道和機車維護時間安排，因為舊 CP 和舊 KCS 網路的活動計劃保持一致。

Equipment rents were up $12 million or 17%. The increase was due to a 2023 receivable along with higher intermodal car hire as CPKC lane shipped a longer length of haul. This increase was partially offset by higher efficiency from improved cycle times and increased network velocity.

設備租金上漲 1,200 萬美元，或 17%。這一增長是由於 2023 年應收帳款以及 CPKC 車道運輸距離更長而導致多式聯運汽車租賃量增加所致。這一增長被周期時間縮短和網路速度提高帶來的更高效率所部分抵消。

The depreciation expense was up 6%, resulting from a higher asset base. Purchased services and other was up 2% year-over-year, higher terminal service costs, an increase in bad debt expense and cost inflation were partially offset by cost synergy savings from the combined insurance premiums and the recognition of a onetime noncompetition waiver fee payment of CAD 34 million.

由於資產基礎增加，折舊費用增加了 6%。購買服務及其他年增 2%，碼頭服務成本上升、壞帳費用增加和成本上漲被合併保險費的成本協同節省和一次性非競爭豁免費用支付的確認部分抵消3400萬加元。

Moving below the line on Slide 15. Other income was $2 million, reflecting the impact of settled foreign currency hedges and higher equity earnings from increased container volumes through the Panama Canal Railway. Other components of net periodic benefit recovery was $88 million, reflecting the lower discount rate compared to 2023 and partially offsetting the headwind to comp and benefits.

移至幻燈片 15 的線下方。淨定期福利回收的其他組成部分為 8,800 萬美元，反映出與 2023 年相比較低的折現率，並部分抵消了薪酬和福利的不利因素。

Net interest expense was $206 million or $201 million on an adjusted basis. The decline was driven by a reduced debt balance. Income tax expense was $259 million or $289 million on a core adjusted combined basis. We still expect the CPKC core adjusted effective tax rate to be approximately 25% for the year.

淨利息支出為 2.06 億美元，調整後為 2.01 億美元。下降的原因是債務餘額減少。所得稅費用為 2.59 億美元，核心調整後合併為 2.89 億美元。我們仍預期今年 CPKC 核心調整後有效稅率約為 25%。

Turning to Slide 16. We are generating strong cash flow with cash provided by operating activities of $1.015 billion in Q1. Capital investments and safety and growth remain our priority. And this quarter, we reinvested $527 million, in line with our plan to invest approximately $2.75 billion in 2024. As Mark discussed, we are making strategic investments in safety and capacity, positioning our network to continue efficiently absorbing the growth that this merger has enabled.

轉向幻燈片 16。資本投資、安全和成長仍然是我們的首要任務。本季度，我們再投資了5.27 億美元，符合我們在2024 年投資約27.5 億美元的計劃。次合併帶來的成長。

We generated $555 million in adjusted combined free cash flow in the quarter and continue to repay debt. We still expect to reach target leverage in late 2024 or early 2025, at which point we will evaluate shareholder returns with our Board. I'm also very pleased to report that during the quarter, Moody's upgraded CPKC's credit rating outlook from stable to positive.

本季我們產生了 5.55 億美元的調整後合併自由現金流，並繼續償還債務。我們仍預計在 2024 年底或 2025 年初達到目標槓桿率，屆時我們將與董事會一起評估股東回報。我還很高興地報告，穆迪在本季度將 CPKC 的信用評級展望從穩定上調至正面。

In review of the quarter, our TMs came in ahead of expectations that we communicated on the fourth quarter call despite weather challenges earlier in the year. Our operations were resilient, and we made progress on key growth investments across our network. We're also seeing the benefit of a lower inflation environment and disciplined pricing on our cost structure. This sets us up well for margin improvement as we move through the rest of the year.

回顧本季度，儘管今年早些時候遇到了天氣挑戰，但我們的 TM 超出了我們在第四季度電話會議上溝通的預期。我們的營運具有彈性，並且我們在整個網路的關鍵成長投資方面取得了進展。我們也看到了較低的通膨環境和嚴格的定價對我們的成本結構的好處。這為我們在今年剩餘時間提高利潤率奠定了良好的基礎。

I am pleased with the start to the year, and we expect to continue gaining momentum from here. With that, let me pass it over to Keith.

我對今年的開局感到滿意，我們希望從這裡繼續獲得動力。那麼，讓我把它交給基斯。

Thanks, guys. Let's open it up, operator, for questions.

多謝你們。操作員，讓我們打開它來提問。

(Operator Instructions) Your first question comes from Ravi Shanker with Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Ravi Shanker。

All right, operator, we should go to the next question.

好的，接線員，我們該進入下一個問題了。

Let's go to the next question, operator, please.

請接線員，讓我們進入下一個問題。

Mr. Chappell your line is open.

查普爾先生，您的路線已接通。

I guess that's me. John Chappell from Apicore. Mark or John, we've seen a real acceleration of Chinese imports in New Mexico of late. The reasons, I guess, vary and we won't get into that. But as it relates to what it means to Lazaro and what it means to the new services that you've created, are you seeing any impact from those yet? Is that moving mostly on truck? And I guess is that a real big opportunity for you as you continue to see that new trade line open up?

我想那就是我。來自 Apicore 的約翰·查普爾。馬克或約翰，我們最近在新墨西哥州看到了中國進口的真正加速。我想，原因各有不同，我們不會深入討論。但由於它對 Lazaro 意味著什麼以及對您創建的新服務意味著什麼，您是否看到了這些影響？主要是用卡車移動嗎？我想，當您繼續看到新的貿易線開放時，這對您來說是一個真正的大機會嗎？

Thanks, John. This is John. Yes. So we saw a steady growth platform at Lazaro really starting the back half of last year, and that trend has continued. I think I said we're up 40%. That was through February, but that's continued here in March and April.

謝謝，約翰。這是約翰。是的。因此，我們從去年下半年就看到了 Lazaro 的穩定成長平台，而且這種趨勢仍在持續。我想我說過我們漲了 40%。那是整個二月，但這種情況在三月和四月仍在繼續。

It is a pretty good mix, John, of truck and rail. And principally, that volume is, well, at least primarily right now, more intra-Mexico, then cross-border. But I can tell you, we do and we have a continued improving product out of Lazaro. I appreciate all the efforts of the state of Michoacán and the efforts at the port between Mark and the team down there to provide a good, safe product up into Mexico. So, I do believe you'll continue to see sort of that volume build on itself. And then we'll get into the exciting part of this chapter as we begin to see that density build into our cross-border business up into that Texas and Gulf market. Which, again, I believe we see a good opportunity there as we move into the second half of the year and into 2025 to grow that volume.

約翰，這是卡車和鐵路的完美結合。主要是，至少現在主要是墨西哥內部的交易量，然後是跨國交易量。但我可以告訴你，我們做到了，我們不斷改進 Lazaro 的產品。我感謝米卻肯州所做的一切努力，以及馬克和那裡的團隊在港口為向墨西哥提供優質、安全的產品所做的努力。因此，我確實相信您會繼續看到該卷本身的構建。然後我們將進入本章令人興奮的部分，因為我們開始看到密度融入我們的跨境業務，直到德克薩斯州和海灣市場。我再次相信，隨著我們進入下半年和 2025 年，我們會看到一個很好的機會來增加這個數量。

And John, I would just add that we stay pretty close to each other, me and John, and we've got capacity, we've got room to move locomotives and people in place, so we can move whatever business we need at Lazaro but certainly communication with each other. Thanks, Mark.

約翰，我想補充一點，我和約翰，我們彼此保持著非常接近的距離，我們有能力，我們有空間來移動機車和人員就位，所以我們可以在拉扎羅轉移我們需要的任何業務但一定要互相溝通。謝謝，馬克。

Your next question comes from Brian Ossenbeck with JPMorgan.

您的下一個問題來自摩根大通的布萊恩·奧森貝克。

Keith, I just wanted to get your thoughts on the latest with the TCRC union negotiation. There are some comments made by CN last night. Just want to get your perspective on it because at least -- from our standpoint, it sounds like there's quite a few moving parts in terms of changing potentially to at least offering an hourly agreement and the unions, obviously, are I think pushing back on that at least from the time being.

Keith，我只是想了解您對 TCRC 工會談判最新情況的看法。昨晚CN發表了一些評論。只是想了解您對此的看法，因為至少 - 從我們的角度來看，在可能改變至少提供每小時協議方面，聽起來有相當多的變化部分，而且顯然，我認為工會正在抵制至少從目前來看是這樣。

So I wanted to get your thoughts on that. And then, John, if you could just clarify what you meant about the Texas, Mexico into the Southeast pending STB approval. Is that related to the MB&R and through the Speedway?

所以我想聽聽你對此的想法。然後，約翰，請您澄清一下關於德克薩斯州、墨西哥進入東南部等待 STB 批准的意思。這與 MB&R 和 Speedway 有關嗎？

I'll start with that and that's exactly what it is, Brian, and as far as the application of the STB, we expect totally, we anticipate a favorable ruling based on the facts and the competition it represents and creates, hopefully, in the very near future. I don't know if it happens next month or the following month. But when it does come, when the decision comes, we are prepared and ready within a month's time of the notice to take over operation of that piece of railway and to start the work in just the partnership with CSX to create a new Class I alternative to the Speedway that it is today to complement the service that we provide NS over the Speedway today.

我將從這一點開始，這正是它的本質，布萊恩，就 STB 的應用而言，我們完全期望基於事實及其所代表和創造的競爭做出有利的裁決，希望在不久的將來。不知道是下個月還是下個月。但當它確實到來時，當決定到來時，我們已準備好並準備好在收到通知後一個月內接管該鐵路的運營，並開始與 CSX 合作創建新的 I 類替代方案今天，它是對我們今天透過Speedway 提供的NS 服務的補充。

So very, very excited about the future of that. The TCRC maybe I'll say tempered excitement or expectations. I'm a realist. I'm an optimist. I can tell you now that we've been negotiating with the TCRC for months, we were forced to file for conciliation. We were with the TCRC this week. We were with them not long ago. The way I see it, the positions have not changed a lot. We have 2 options on the table. We have a, what I call, a status quo deal with only one, what I would call, a pay relative to change, not a work rule change, [tried to held] away from home terminal pay. That's the only concession that we're asking for in exchange for fair and equitable wage increases, which other employees and other unions have realized the benefit of.

對它的未來非常非常興奮。 TCRC 也許我會說是緩和了興奮或期望。我是一個現實主義者。我是一個樂觀主義者。我現在可以告訴你，我們已經與 TCRC 談判了幾個月，我們被迫申請調解。這週我們和 TCRC 在一起。不久前我們和他們在一起。在我看來，立場沒有太大改變。我們有兩個選擇。我們有一種，我所說的，一種現狀，只涉及一種，我所說的，相對於變化的工資，而不是工作規則的變化，[試圖保留]遠離家庭的終端工資。這是我們要求的唯一讓步，以換取公平公正的薪資成長，其他員工和其他工會已經意識到了這一點的好處。

The second is a progressive hourly deal. I can tell you that, that progressive hourly deal, in my assessment, addresses what our employees want and need. They want a better quality of life. They want higher wages, which certainly is understandable. Those expectations. And in turn, our ability to be able to provide that is found in the term and conditions of that hourly agreement. The customer wins, the employee wins, employee retention wins, it's really a win-win scenario, but it takes change. It takes leaders that are willing to see the wisdom in it, the benefit in it. And at this point, that has not happened.

第二種是按小時累進的交易。我可以告訴你，根據我的評估，漸進的小時交易滿足了我們員工的需求。他們想要更好的生活品質。他們想要更高的工資，這當然是可以理解的。那些期望。反過來，我們提供這種服務的能力可以在每小時協議的條款和條件中找到。客戶獲勝，員工獲勝，員工保留獲勝，這確實是一個雙贏的局面，但這需要改變。它需要那些願意看到其中的智慧和好處的領導者。而目前，這種情況還沒有發生。

Now again, I'm going to be optimistic but realistic. So where does that lead us? That leads us to a place -- the third weekend of May. In fact, kind of the drop dead time is going to be May the 19th of 0001. And at that point, If we don't have an agreement, which I'm optimistic and hopeful we'll be able to reach one, but if we don't, which is what we're obviously for the best, but you have to make sure you plan for the worst as well. If that were to occur, a strike notice or a lockout notice in -- within 72 hours, so May 22 at 0001 would be the earliest that a strike could actually come into existence. And the unique thing about this as well is CN is facing the same deadline that we're facing uniquely to our network. Not only would it be our running trains employees that operate the trains that move across the network. It's also our dispatchers. The dispatch not only the freight trains but also dispatch the pass-through trains in Vancouver, they get to get folks in. And Vancouver from their homes to the [city downtown] core to go to work. Same situation in Toronto with Metrolinx, we dispatch those trains on our rail line, same situation in Montreal with those passengers.

現在，我將再次保持樂觀但現實的態度。那麼這會將我們引向何方呢？這將我們引向一個地方——五月的第三個週末。事實上，某種意義上的停止時間將是 0001 年 5 月 19 日。是我們最好的選擇，但您也必須確保做好最壞的打算。如果發生這種情況，罷工通知或停工通知將在 72 小時內發出，因此 5 月 22 日 00 點將是罷工實際上可能發生的最早時間。其獨特之處在於 CN 面臨著與我們的網路所面臨的相同的最後期限。不僅是我們的運行列車員工負責操作在網路上行駛的列車。這也是我們的調度員。不僅調度貨運列車，還調度溫哥華的直通列車，他們可以讓人們從家裡到溫哥華市中心去上班。多倫多與 Metrolinx 的情況相同，我們在我們的鐵路線上調度這些火車，蒙特利爾的情況與這些乘客相同。

So this is truly something that I hope can be avoided. It's certainly not going to come at a good time for the country of Canada. But as I've told our customers and as I've told the government, and I've told our employees, if we're going to have a strike, the uncertainty of that in and of itself is damaging. For it to be prolonged, for it to occur if it must occur later in the year when we have a harvest coming in when the demand for our service and the needs of the country have never been greater. That is the absolute worst time for it to occur.

所以這確實是我希望能夠避免的事情。對加拿大來說，這肯定不是一個好時機。但正如我告訴我們的客戶、我告訴政府、我告訴我們的員工的那樣，如果我們要舉行罷工，那麼罷工本身的不確定性就會造成損害。讓它延長，如果它必須發生在今年晚些時候，當我們即將收穫時，當對我們的服務的需求和國家的需求從未如此之大時，它就會發生。這絕對是最糟糕的時刻。

So as unfortunate as it is, I believe, from a very realistic view, given my experience, having been at that negotiating table many, many times, and I'll be at it again this time. That's how serious this is I'm hopeful, and I hope that we can avoid it, but this railroad will be prepared in the event that we can't because we will not do a bad deal. We've got to balance the needs of our shareholders, the balance of our customers, and the balance of our fellow employees, not just the TCRC that we have negotiated with and came to negotiated agreements historically. Just unfortunately, we haven't been able to get there with this group.

因此，儘管很不幸，但我相信，從非常現實的角度來看，鑑於我的經驗，我已經多次坐在談判桌上，這次我會再次參加。這就是事情的嚴重性，我對此抱有希望，我希望我們能夠避免它，但如果我們無法避免，這條鐵路將做好準備，因為我們不會做壞事。我們必須平衡股東的需求、客戶的平衡以及同事的平衡，而不僅僅是我們歷史上與之談判並達成談判協議的 TCRC。不幸的是，我們沒能和這個團隊一起到達那裡。

And again, I'm hoping with strong leadership that can change. I'll remain optimistic, but it just hasn't happened yet.

我再次希望，在強而有力的領導下，情況能夠改變。我會保持樂觀，但這還沒發生。

Your next question comes from Walter Spracklin with RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Walter Spracklin。

I wanted to go back to your volume guidance. When I look at what's happening in Vancouver, obviously, a surge of containers coming into that part, you're poised to benefit significantly from that. John, you mentioned Mexico, the Lazaro Cardenas is up 40%. That's not a small number. it's catching its stride. Macro trends. In your prepared remarks, you indicated Q1 came in better than you expected. And I think many would say we're perhaps from a macro perspective and a little bit better outlook here in April going into May than we were in January.

我想回到你的音量指導。當我看看溫哥華正在發生的事情時，顯然，大量的貨櫃進入該地區，您將從中受益匪淺。約翰，你提到墨西哥，Lazaro Cardenas 上漲了 40%。這可不是一個小數目。它正在加快步伐。宏觀趨勢。在您準備好的發言中，您表示第一季的情況比您預期的要好。我想很多人會說，從宏觀角度來看，四月到五月的前景可能比一月好一些。

So just curious, when you look at your low single-digit volume guidance and so many kind of inflecting positive macro, but also more importantly, company-specific opportunity. Just curious as to where you frame that low single digit? Is it just kind of just being overly conservative? Or do you see upside to that guidance here for 2024?

所以只是好奇，當你看看你的低個位數銷售指導和如此多的積極宏觀影響，但更重要的是，公司特定的機會。只是好奇你在哪裡畫出這個低個位數？這是否只是過於保守？或者您認為 2024 年的指導有好處嗎？

Walter, you made some very good observations. And I think I'd frame it up as being responsibly conservative. There's some uncertainties out there. Certainly, we're in a good place. The network is running well. The demand is there, the synergies are coming. The new markets are being developed. We have a very unique story and a very unique opportunity. But we also have a responsibility to look ahead. We've got a potential union strike. I don't yet know what the macro is going to do in the second half. We've got some assumptions in that, which are conservative assumptions. So if it does better than what we assume, then sure, there's some upside.

沃特，你做了一些非常好的觀察。我想我會把它描述為負責任的保守派。那裡存在一些不確定性。當然，我們處於一個好的位置。網路運作良好。需求就在那裡，綜效就來了。新市場正在開發中。我們有一個非常獨特的故事和一個非常獨特的機會。但我們也有責任展望未來。我們可能會舉行工會罷工。我還不知道下半年宏觀會做什麼。我們對此有一些假設，這是保守的假設。因此，如果它的表現比我們想像的更好，那麼當然有一些好處。

If the strike isn't as long as what we might think it'd be or if we don't have a strike at all, then sure, we've got some upside. Do we have a normal grain harvest is at a bumper crop, or do we have, again, a situation where we face a potential drought? Those are the levers that we're really looking at. And once those become clear, then I'd be in a position to responsibly tell you, yes. we have upside.

如果罷工沒有我們想像的那麼長，或者我們根本沒有罷工，那麼當然，我們還有一些好處。是糧食正常豐收，還是又出現旱情？這些才是我們真正關注的槓桿。一旦這些變得清晰，那麼我就可以負責任地告訴你，是的。我們有上行空間。

And I guess I'll just close saying we're in a good place. We've worked hard to get to this place. This team is prepared for any of those outcomes we've talked about. And in the end, come this summer, come the end of the second quarter, I think we'll be in a better position to tell you, yes, Walter, what you're seeing the potential of that is true. It's exciting. And until then, we're going to stay responsibly conservative and make sure we do our jobs and prepare for these challenges we have ahead of us and come out in a very, very strong position on the other side.

我想我會在結束時說我們處於一個很好的位置。我們經過努力才到達這個地方。團隊已為我們討論過的任何結果做好準備。最後，到今年夏天，到第二季末，我認為我們將能夠更好地告訴你，是的，沃爾特，你所看到的潛力是真實的。是興奮的。在那之前，我們將保持負責任的保守態度，確保我們做好我們的工作，為我們面臨的這些挑戰做好準備，並在另一邊處於非常非常有利的地位。

Your next question comes from Fadi Chamoun with BMO Capital Markets.

您的下一個問題來自 BMO 資本市場的 Fadi Chamoun。

Yes. Maybe just one follow-up question on the volume. In the second quarter, I mean, we're starting off strong I'm thinking grain potentially could wind down a little bit as we move into the quarter. Is there a way for you to kind of give us some gauge on what second quarter kind of the -- right framework for Q2 volume.

是的。也許只是關於卷的一個後續問題。我的意思是，在第二季度，我們的開局強勁，我認為隨著進入本季度，糧食可能會略有減少。您是否可以透過某種方式向我們提供一些關於第二季銷售的正確框架的一些衡量標準。

And really, my main question on the pricing side, I mean, pricing environment is quite good, maybe unless you're competing with truck in some markets. But what are you thinking now with a year into this merger about the service-related pricing opportunity for CP? And is this something that will take time to kind of realize or are there triggered in terms of contract changes renewals that you can kind of use to drive price improvement on the basis of the service level that you're (inaudible) ?

事實上，我的主要問題是定價方面，我的意思是，定價環境相當好，也許除非你在某些市場與卡車競爭。但是，在合併一年後，您現在對 CP 與服務相關的定價機會有何看法？這是否需要一些時間才能實現，或者是否會在合約變更續約方面觸發，您可以使用它來根據您（聽不清楚）的服務水準推動價格改善？

Let me -- Fadi, I'm going to let John get into the color of the pricing. But let me tell you conceptually, when it comes to price of this company, we're selling a valued service. It's not a commodity. There's value in it. There's a value proposition for the customer. The level of service, the capacity we have on our railroad, the way we run the railroad, it's worth something in markets because it allows the reliability for our customers to win in their marketplace. So that's always going to be our story. It's a value proposition. And as long as we do our job well, we never have to apologize providing a very unique and valuable service.

讓我—Fadi，我要讓約翰談談定價的顏色。但讓我從概念上告訴你，當談到這家公司的價格時，我們正在銷售一項有價值的服務。它不是商品。它有其價值。對客戶有一個價值主張。服務水準、我們鐵路的容量、我們營運鐵路的方式，在市場上都是有價值的，因為它使我們的客戶能夠以可靠性贏得市場。所以這永遠是我們的故事。這是一個價值主張。只要我們做好我們的工作，我們就永遠不必道歉，提供非常獨特和有價值的服務。

On the volume side, we're starting strong. We're -- this morning, I looked at it -- we're up over 9% on an RTM basis, and that's really what matters the most, not carloads, it's RTMs. But again, looking at what's ahead of potential strike, we're modeling again in a very responsible, conservative way. for the quarter, I think we're somewhere around 3% -- 2% to 3% for the quarter.

在成交量方面，我們起步強勁。我們——今天早上，我看了——我們在 RTM 基礎上上漲了 9% 以上，這確實是最重要的，不是整車負載，而是 RTM。但同樣，考慮到潛在罷工之前的情況，我們再次以非常負責任、保守的方式進行建模。就本季而言，我認為該季度的成長率約為 3%——2% 至 3%。

And again, I've already talked about if some of those things don't happen, then that will change. But right now, that's where we're sticking our guidance to and we're well on track to be able to achieve that. So John, do you want to provide a little color on the price?

再說一遍，我已經說過，如果其中一些事情沒有發生，那麼情況就會改變。但現在，這就是我們堅持指導的地方，我們正在順利實現這一目標。約翰，您想提供一些有關價格的資訊嗎？

Yes. So that's exactly, Fadi, in terms of I'm looking at the quarter in terms of volume. Certainly, hopefully, there's upside in May and June. But with the strike and other things looming, we're going to stay responsibly cautious on that front. .

是的。 Fadi，這正是我從數量角度來看待本季的情況。當然，希望五月和六月有上行空間。但隨著罷工和其他事情的臨近，我們將在這方面保持負責任的謹慎。 。

The grain business, you're right. It definitely has been a little better the last 30 days or so. But we're going to get into seeding here in May and certainly expect that to fall off. I just met with all the grain companies the last couple of weeks. And they're pretty optimistic that we might see, particularly if we get some rains here in May and early June that we might actually see a pretty decent push this summer. So we're watching that closely. And certainly, that could provide some upside there.

糧食生意，你說得對。在過去 30 天左右的時間裡，情況確實好一些了。但我們將在五月開始播種，當然預期播種量會下降。過去幾週我剛與所有糧食公司會面。他們對我們可能看到的情況非常樂觀，特別是如果我們在五月和六月初這裡有一些降雨，我們可能會在今年夏天看到相當不錯的推動。所以我們正在密切關注這一點。當然，這可以帶來一些好處。

You asked about the pricing. I'm super pleased with the execution and discipline that we have performed with in Q1. I saw it coming. We held in there, and we delivered on the very top end our efforts the last half of '23. It's carried into the quarter in '24. And we'll continue to be disciplined as we move forward.

您詢問了定價。我對我們在第一季的執行力和紀律感到非常滿意。我看到它來了。我們堅持了下來，並在 23 年後半段取得了最好的成績。它已結轉到 24 年的季度。我們將在前進的過程中繼續遵守紀律。

I had previously said there were a number of maybe legacy KCS agreements that hadn't been repriced and we're coming up for renewal this first half of the year. So we've been focused on those. We've been focused on those in the context of what Keith said, making sure we're getting the value for the service and capacity that we provide. So I expect that to continue here in Q2.

我之前曾說過，有許多可能遺留的 KCS 協議尚未重新定價，我們將在今年上半年進行續約。所以我們一直專注於這些。我們一直專注於 Keith 所說的內容，確保我們能夠獲得我們提供的服務和容量的價值。因此，我預計這種情況將在第二季繼續下去。

If I were to call out 1 area, where we've seen maybe softness versus others that would be in the domestic intermodal front. I think that's pretty obvious, though, relative to some of the overcapacity challenges in the truck market out there. But there also might be some signs of life there as we push towards the second half of the year. I'm really pleased with how we've seen our volumes grow on our Mexico Midwest express train. I fully expected a slugfest here to start the year in terms of building that volume, and we've had some really nice wins.

如果我要指出一個區域，與國內多式聯運方面的其他區域相比，我們可能會看到該區域的疲軟。不過，我認為，相對於卡車市場面臨的一些產能過剩挑戰，這一點非常明顯。但隨著下半年的臨近，那裡也可能會出現一些生機跡象。我對墨西哥中西部快車的運量成長感到非常滿意。我完全預料到今年開始時，我們會在銷量方面展開一場激烈的較量，而且我們已經取得了一些非常好的勝利。

So if we can keep that trajectory going. Again, there might be upside as we look to Q2 -- or the second half of the year, sorry.

因此，如果我們能夠保持這個軌跡。再次，抱歉，當我們展望第二季或下半年時，可能會有上行空間。

Your next question comes from Scott Group with Wolfe Research. Please go ahead.

您的下一個問題來自 Scott Group 和 Wolfe Research。請繼續。

Operator please go to the next question.

接線生請轉到下一個問題。

Next question will come from Ken Hoexter with Bank of America.

下一個問題將由美國銀行的 Ken Hoexter 提出。

Great. I'll take Scott's question as well. Keith and team, great thoughts on Jim always enjoyed our discussions. So thoughts there as well. John, you touched out there real quick. The intermodal noted some short-haul lanes left. Is that from increased competition? And then perhaps, Keith or Nadeem, can you talk about the progress on synergy targets? Are there -- can you talk about the dollars at this point? And does that set you up, I guess, normal sequential operating ratio performance would put you sub-60 into the second quarter? Can you talk to that level?

偉大的。我也會回答斯科特的問題。基斯和團隊，對吉姆的偉大想法總是很享受我們的討論。所以也有這樣的想法。約翰，你很快就觸及了那裡。多式聯運注意到還有一些短程車道。這是因為競爭加劇嗎？然後，Keith 或 Nadeem，您能否談談協同目標的進展？現在您能談談美元嗎？我想，這是否會讓你認為，正常的連續營運比率表現會讓你在第二季低於 60？能聊到那個水平嗎？

On the synergy -- the synergy question, Ken. We're exactly where we said we would be. We exited at $350 million. We said we're going to double it on the revenue side. So we're certainly on track in a good position. Same for the cost synergy side. So synergies are moving in line with what we said, if not a little bit ahead. So we're very pleased in that space.

關於協同作用－協同作用問題，肯。我們就在我們說過的地方。我們以 3.5 億美元退出。我們說過我們將在收入方面將其翻倍。所以我們肯定處於一個有利的位置。成本協同方面也是如此。因此，協同效應的進展與我們所說的一致，即使不是提前了一點。所以我們對這個空間非常滿意。

On the short-haul stuff, Ken, honestly, it's stuff that we're completely fine with it exiting our railroad. To be quite candid with you, it's business that principally ran between stations in Mexico and the border. It consumed a lot of capacity at our terminals in Mexico and certainly our border crossing.

在短途運輸方面，肯，老實說，我們完全同意它離開我們的鐵路。坦白說，這項業務主要在墨西哥的車站和邊境之間進行。它消耗了我們在墨西哥的碼頭和邊境口岸的大量容量。

So the fact that a lot of that traffic has moved over to the FXE has frankly just opened up the ability for us to grow the long haul. I talked about our average length of haul being up I think 8% year-over-year, our intermodal average length of haul is up 12%. And that's -- we're utilizing the capacity with our customers that want the premium ride and a seamless connection at the border up into the upper Midwest into Canada. So I expect that trend to continue.

因此，坦白說，大量流量已轉移到 FXE，這一事實為我們提供了發展長途業務的能力。我談到我們的平均運輸距離年增了 8%，我們的多式聯運平均運輸距離增加了 12%。那就是——我們正在利用我們的客戶的運力來提供優質的乘車服務以及在邊境上中西部地區和加拿大之間的無縫連接。所以我預計這種趨勢會持續下去。

He's right into that value proposition model, Ken, it's a good thing, not a bad thing.

他很認同這種價值主張模型，肯，這是一件好事，而不是一件壞事。

And Ken, we'll obviously see sequential improvement in the OR and year-over-year improvements. So giving you a Q2 number, I'd say that it's going to be somewhat depends -- depends on what happens at the labor situation. We talked about some of the grain impact in Q2 that we might see that the grain volumes start to decline in Canada as seeding takes place, and we start running out of grain in Canada. But -- so it depends. I'm not going to give you a number, I'd just say that we'll continue to see improvements and year-over-year improvement.

肯，我們顯然會看到 OR 的連續改進和逐年改進。因此，給你一個第二季的數字，我想說，這將在某種程度上取決於——取決於勞動力情況發生的情況。我們討論了第二季度對糧食的一些影響，我們可能會看到，隨著播種的進行，加拿大的糧食數量開始下降，並且加拿大的糧食開始耗盡。但是——所以這要看情況。我不會給你一個數字，我只是說我們將繼續看到改進和逐年改進。

Your next question comes from Steve Hansen with Raymond James.

您的下一個問題來自史蒂夫漢森和雷蒙德詹姆斯。

I wanted to circle back on the length of haul issue because it's been quite market of an increase, not just in intermodal, but in ECP as well. And John, do you want to maybe just comment on the longevity of that trend? I presume it's the Edmonton to the Gulf volumes that are helping extend that length. But just any broader commentary around the durability of these this broader length of haul being?

我想回顧一下運輸距離問題，因為這是一個成長的市場，不僅在多式聯運中，而且在 ECP 中也是如此。約翰，您是否想簡單評論一下這種趨勢的持久性？我認為埃德蒙頓到海灣的運輸量有助於延長這一長度。但對於這些更廣泛的運輸長度的耐久性有任何更廣泛的評論嗎？

Yes, Steve. So the mix was quite interesting in Q1. I spoke about the -- certainly, the short haul domestic Intermodal that shifted away from the railroad. We definitely saw volumes decline in our U.S. coal business, with also a very short-haul business. But on top of that, we layered on strength in international, strength in grain, strength in potash, some of those longer-haul plus the synergies, the growth in the MMX and the ECP area that you alluded to, which is largely Alberta down to the Gulf and even into Mexico.

是的，史蒂夫。所以第一季的組合非常有趣。我談到了──當然，是脫離鐵路的短程國內多式聯運。我們確實看到了美國煤炭業務的銷量下降，還有非常短程的業務。但除此之外，我們還重點關注國際市場的實力、穀物的實力、鉀肥的實力、其中一些長途航線以及協同效應、您提到的MMX 和ECP 地區的增長，這在很大程度上是艾伯塔省的下降到海灣，甚至進入墨西哥。

I do believe this is -- we're just seeing a natural progression of what this railroad looks like in the future. It just maybe got a little accented in Q1 more than we anticipated. I expect that to moderate and normalize.

我確實相信這是——我們只是看到這條鐵路未來的自然發展。它可能在第一季比我們預期的更加突出。我預計這種情況會緩和並正常化。

The other thing I will point out, because I think it's important as you guys think about mix is, we have really forecasted a strong automotive Q1 with all the business wins and some of the pent-up demand. And certainly, we outperformed, and we set a record in that quarter. But I'll just remind you, it did fall very short of our expectations. So there was a lot of good length of haul there and high sense per RTM traffic that didn't materialize in Q1 that certainly we're seeing ramp up here in Q2.

我要指出的另一件事是，因為我認為，當你們考慮混合時，這一點很重要，我們確實預測了汽車行業第一季度的強勁表現，所有業務都取得了勝利，並且有一些被壓抑的需求。當然，我們表現出色，並在該季度創下了記錄。但我只想提醒你，它確實沒有達到我們的期望。因此，那裡有很多良好的運輸距離和高感知的 RTM 流量，這些在第一季並未實現，但我們肯定會在第二季度看到成長。

I think I'll add a little bit of color to that, John, because I see it a little bit differently. When you say normalized, I don't think we're going to normalize until we've fully built out our closed-loop automotive supply chain. We've got Wylie terminal opening up end of the quarter June. In June, that's going to allow vehicles that are produced and shipped out of Ontario today that currently linked to haul into Chicago. That length of the haul is going to end in Dallas, Texas for CPKC. It's going to create empty supply to go down to Mexico and links St. Paul today, perhaps stop at Laredo or Robstown are going to be going to Minneapolis, St. Paul and we'll be going to Canada.

約翰，我想我會對此添加一點色彩，因為我的看法有點不同。當你說標準化時，我認為在我們完全建立閉環汽車供應鏈之前我們不會實現標準化。我們的 Wylie 航站樓將於六月季度末開放。六月份，這將允許今天從安大略省生產和運出、目前連接到芝加哥的車輛。 CPKC 的這段旅程將在德克薩斯州達拉斯結束。它將創造空的供應，今天可以前往墨西哥並連接聖保羅，也許在拉雷多或羅布斯敦停留，然後前往明尼阿波利斯、聖保羅，我們將前往加拿大。

So again, this thing is a multiple chapter story. We're not going to get it built out overnight. It's a 2-, 3-, 4-, 5-year plan, that in and of itself, that one business unit offers significant, I think, accretive incremental improvements to driving that length of fall.

再說一次，這件事是一個多章節的故事。我們不會在一夜之間把它建成。這是一個 2 年、3 年、4 年、5 年計劃，我認為，就其本身而言，一個業務部門提供了重大的漸進式改進，以推動持續的下降。

Your next question comes from Scott Group with Wolfe Research.

您的下一個問題來自 Scott Group 和 Wolfe Research。

Sorry about that earlier. Can you guys hear me?

之前的事很抱歉。你們聽得到我說話嗎？

Absolutely.

絕對地。

So you guys keep referring to a potential strike. It almost feels as if like your guidance assumes that we are going to have a strike or said differently, if we do have sort of a normal short-lived strike, do you still feel confident about doing double-digit earnings growth this year? .

所以你們一直在提到潛在的罷工。感覺就像您的指導假設我們將舉行罷工，或者換句話說，如果我們確實舉行了正常的短暫罷工，您對今年實現兩位數的盈利增長仍然有信心嗎？ 。

And then maybe just bigger picture, Keith, when I look at Q1, revenues up 2%, operating income is flat. Like do you think -- I guess -- I know we get some strike uncertainty, but going forward, like -- it feels like we're at the point now where like the story is going to really start showing up in the model in terms of better revenue growth, meaningful margin improvements and significant earnings growth.

然後也許只是更大的圖景，基思，當我看第一季時，收入成長了 2%，營業收入持平。就像你認為 - 我猜 - 我知道我們會遇到一些罷工不確定性，但展望未來，就像 - 感覺我們現在正處於這個故事將真正開始出現在模型中的時刻更好的收入增長、有意義的利潤率改善和顯著的獲利成長。

Is that the right way to think about it that we're sort of we're there now and it's going to all start showing up in the model?

這是正確的思考方式嗎？我們現在就在那裡，一切都將開始出現在模型中？

I think we're at an inflection point. So as this thing starts to play out, Scott, I think you've got that captured accurately.

我認為我們正處於一個轉折點。因此，當這件事開始發生時，斯科特，我想你已經準確地捕捉到了這一點。

And Scott, if we have kind of a strike that's not extended. I'm comfortable that we can still hit our double-digit EPS guidance for the year.

史考特，如果我們的罷工沒有延長。我很高興我們今年仍能達到兩位數的每股盈餘指引。

Your next question comes from Tom Wadewitz with UBS.

您的下一個問題來自瑞銀集團的湯姆·瓦德維茨。

Yes. I guess a lot of things to -- you get asked about in the growth drivers, you've got a lot of things going on. How do you think about -- you mentioned on kind of a new service that when you get the approval from SDB with Schneider, would you think of that as being kind of new origination points or kind of new connectivity that gives you new volume? Or do you think some of it is service goes from Norfolk to CSX?

是的。我想很多事情——你會被問到成長動力，你有很多事情正在發生。您如何看待——您提到一項新服務，當您與施耐德獲得深發展的批准時，您是否會認為這是一種新的起點或一種新的連接，可以為您帶來新的業務量？或者您認為其中一部分是從諾福克到 CSX 的服務？

Or I guess how do we think about -- obviously, there's some noise going on with the agreement you have or the concessions that you got related to John Orr leaving. So I don't know if you can give some broader comments on kind of the opportunity and how much is new business? And how much do you think might end up being shifting on that kind of Mexico and Meridian Speedway opportunity?

或者我猜我們如何考慮——顯然，你們所達成的協議或與約翰·奧爾離開有關的讓步存在一些噪音。所以我不知道您是否可以就機會的類型以及新業務的金額發表一些更廣泛的評論？您認為墨西哥和子午線賽道的這種機會最終可能會改變多少？

Okay. Thanks. Let me say this. All this noise about the agreement over the Meridian Speedway is just that. It's much to do about nothing. At the end of the day, all we've done is take issues that were right for dispute off the table. We're going to have unfettered opportunity to compete in partnership with NS to compete partnership CSX. This isn't about share shift. If there's any, it might be nominal.

好的。謝謝。讓我這麼說吧。所有關於子午線高速公路協議的噪音都只是這樣。無事可做的事情太多了。歸根究底，我們所做的就是將那些適合引起爭議的問題排除在外。我們將有不受限制的機會與 NS 合作，與 CSX 競爭。這與股權轉移無關。如果有的話，也可能是名義上的。

There's some overlapping markets in the Southeast that perhaps they both serve. But what this is about growth. It opens up competition in new markets for CSX's customers and lanes that NS can offer them that opportunity. And conversely, within NS, they're no worse off. We've got 2 situations here where we can uniquely partner with both railroads. It's enabling investment to create an alternative route. The customer has a choice, competition wins, service wins.

東南部有一些重疊的市場，也許它們都服務於這些市場。但這與成長有關。它為 CSX 的客戶和 NS 可以為他們提供機會的通道開闢了新市場的競爭。相反，在國民服役內部，他們的處境並沒有更糟。在兩種情況下，我們可以與兩家鐵路公司進行獨特的合作。它使投資能夠創造一條替代路線。客戶有選擇，競爭獲勝，服務獲勝。

The only true threat in this unless you're afraid to compete is truly the truck. That's where the competition is. That's where the growth is going to come from. It's that I-20 that runs parallel to that Meridian Speedway that we're going to be competing against. This is truck competitive business. So any -- and again, it's much to do about nothing. I think this is a win-win situation.

除非你害怕競爭，否則唯一真正的威脅就是卡車。這就是競爭所在。這就是成長的來源。我們要與之競爭的是與 Meridian Speedway 平行的 20 號州際公路。這是卡車競爭業務。所以，再說一遍，這是無事可做的事情。我認為這是一個雙贏的局面。

And again, I'll close saying the only other loser in this perhaps are the lorries that would have been fighting on our behalf and the dispute with NS over some of those very ripe for dispute considerations that were eliminated with our agreement.

最後，我要再說一遍，這件事上唯一的輸家可能是那些本來會為我們而戰的卡車，以及與NS 之間的爭端，其中一些爭端考慮因素已經非常成熟，但我們的協議已被消除。

And listen, if anybody wants to see the truth and see the facts we filed with the STB, the agreement, Go look at it. you'll see for yourself that exactly what we're saying. And in fact, exactly what NS has said is exactly what the truth is. It's much to do about nothing. Let's get over this, and let's get to competing and being great partners with NS and being great partners with the CSX. That's what our intention is to be.

聽著，如果有人想了解真相並了解我們向 STB 提交的事實、協議，那就去看看吧。你會親眼看到我們所說的正是如此。事實上，NS所說的正是事實。無事可做的事情太多了。讓我們克服這個問題，開始與 NS 競爭並成為優秀的合作夥伴，並與 CSX 成為優秀的合作夥伴。這就是我們的意圖。

Tom, I just would add to Keith's comments, I don't see shift. It's a truck lane either out of Mexico or Texas that we're focused on. And frankly, there is a significant -- with the terminal development we've got going on at Wylie, that is non-intermodal focus. The automotive, the transload development, we've got going on in Dallas market, the carload business opportunity in that lane that I think is untapped, is a great growth story. And that -- those markets are open up to both NS and CSX.

湯姆，我只是想補充基斯的評論，我沒有看到轉變。我們關注的是來自墨西哥或德州的卡車車道。坦白說，隨著我們在 Wylie 正在進行的航站樓開發，有一個重要的方面，那就是非聯運重點。汽車、轉運開發，我們在達拉斯市場正在進行，我認為該車道上的整車商業機會尚未開發，是一個偉大的成長故事。而且這些市場對 NS 和 CSX 都開放。

There's just never been for whatever reason, the intense level that we will bring to the sales approach of growing that lane. And frankly, we've had so many other irons in the fire and areas of focus. We're now kind of shifting to how we grow that as part of this portfolio. And I see it all as additive.

無論出於何種原因，我們都將從未有過如此強烈的水平來發展這條車道的銷售方法。坦白說，我們還有很多其他的問題和重點領域。我們現在正在轉變如何將其作為該投資組合的一部分來發展。我認為這一切都是附加的。

And I would say we're partnering right folks too. We're super excited about the partnership with Schneider, the same partnership that's allowing us to grow that great MMX services, I think, going to meet or exceed this opportunity when we talk about this new gateway we're creating.

我想說我們也在與合適的人合作。我們對與 Schneider 的合作感到非常興奮，同樣的合作關係使我們能夠發展出色的 MMX 服務，我認為，當我們談論我們正在創建的這個新網關時，我們將滿足或超越這個機會。

Maybe just one brief follow-up. Do you think it's more volume is Dallas origination or Texas origination? Or is more of the new business with CSX going to be Mexico origination?

也許只是一個簡短的後續行動。您認為達拉斯起源還是德州起源的銷售量更大？或者 CSX 的更多新業務是否源自墨西哥？

Well, there is a lot of -- certainly Texas, Atlanta type traffic, Tom, it's truck. And as you know, that market is extremely tough right now with the truck capacity and spot rates. So it's hard for me to put a percentage on it. I would say, maybe broadly speaking, that might be a slightly bigger intermodal type market, but it's highly competitive, and we're going to have to find those customers and those commodities that fit our model and are willing to pay for that servicing capacity.

嗯，有很多——當然是德克薩斯州、亞特蘭大類型的交通，湯姆，是卡車。如您所知，由於卡車容量和即期價格，該市場目前非常艱難。所以我很難給一個百分比。我想說，也許從廣義上講，這可能是一個稍大的多式聯運類型市場，但競爭非常激烈，我們必須找到適合我們模式並願意為服務能力付費的客戶和商品。

I can tell you my team's focus and my focus with NS and CSX is going to be in Mexico. That's where we can generate a length of haul. We can leverage the great service Mark and team are providing down in that marketplace. And with all the industrial development going on down in Mexico. We've got over 40 projects kind of active right now that will represent significant volume growth opportunities in intermodal over the next 2 to 3 years that will sort of fit right into that wheelhouse of that service into the Southeast U.S.

我可以告訴你我的團隊的重點以及我對 NS 和 CSX 的關注將集中在墨西哥。這就是我們可以產生一定長度的運輸的地方。我們可以利用馬克和團隊在該市場提供的優質服務。隨著墨西哥所有工業發展的進展。我們目前有 40 多個項目處於活躍狀態，這些項目將在未來 2 到 3 年內代表多式聯運的巨大數量增長機會，這將恰好適合該服務進入美國東南部的駕駛室。

I think the other complementary piece of that book is all the automotive development, the plants that are being developed and that we'll soon open on specifically, in this case, the CSX. So as those supply chains get established, those parts that get moved from Mexico to the Southeast and parts from the Southeast of Mexico, that ecosystem for us to be able to have a competitive lane, that takes right now. The finished vehicles that are being produced today. There are thousands of carloads , potential railcar loads of finished vehicles that are on that highway. That are moving between the Southeast markets where they're produced for Glovis perhaps going into the Dallas markets. Those are ripe for opportunities, rail wins, the environment wins competition wins. This is all a good story. .

我認為這本書的另一個補充部分是所有汽車開發、正在開發的工廠以及我們很快就會專門討論的工廠，在本例中是 CSX。因此，隨著這些供應鏈的建立，那些從墨西哥轉移到東南部的部件以及從墨西哥東南部轉移的部件，這個生態系統使我們能夠擁有一條有競爭力的通道，這就是現在所需要的。今天正在生產的成品車。該高速公路上有數千輛汽車，可能有鐵路車裝載的成品車輛。這些產品在東南市場之間流動，為 Glovis 生產，可能會進入達拉斯市場。機會已經成熟，鐵路獲勝，環境獲勝，競爭獲勝。這都是一個好故事。 。

Your next question will come from Benoit Poirier with Desjardins Bank Securities.

您的下一個問題將由 Desjardins Bank Securities 的 Benoit Poirier 提出。

Just to come back on the previous question with respect to, obviously, there's a lot of momentum at Lazaro with a 40% increase in volume. It looks like that there's China that is also bypassing the U.S. sending stuff in Mexico. I'm just wondering, how much is it the driver with respect to the overall volume increase. We've seen not too long ago that the Mexican government announced that it would apply some tariffs on some imported goods. So they want to protect kind of the Mexican and the U.S. economy.

回到上一個問題，很明顯，Lazaro 的勢頭強勁，銷量增長了 40%。看起來中國也在繞過美國向墨西哥發送貨物。我只是想知道，相對於整體音量增加而言，驅動因素有多少。不久前我們看到墨西哥政府宣布對部分進口商品加徵關稅。所以他們想保護墨西哥和美國的經濟。

Just wondering whether it's the kind of something to keep in mind. And just in terms of cargo diversion, have you seen some on the back of the labor issues? And if you could give an update on St. John, that would be great.

只是想知道這是否是一種需要記住的事情。就貨物轉移而言，您是否看到了一些與勞工問題有關的問題？如果您能提供有關聖約翰的最新信息，那就太好了。

Yes. So Benoit, I'm not going to speculate on whether or not the Mexican government does something in terms of managing Chinese imports versus their own production. I do believe we have seen some of the surge relative to some of that business coming into Mexico today. But the fact of the matter is Lazaro has capacity has low undocked well. And frankly, I think the steamship lines and beyond just -- maybe Transpacific freight, South American freight are recognizing Lazaro as an alternative. And -- is that because a looming East Coast and looking at that as an alternative to going through the Panama Canal? I think all that's part of the story. .

是的。因此，伯努瓦，我不會猜測墨西哥政府是否會在管理中國進口和本國生產方面採取措施。我確實相信，與今天進入墨西哥的部分業務相比，我們已經看到了一些激增。但事實是拉札羅的能力較低，未對接良好。坦白說，我認為輪船公司以及其他公司——也許跨太平洋貨運公司、南美貨運公司正在將拉扎羅視為替代方案。而且——這是因為東海岸迫在眉睫，並將其視為穿越巴拿馬運河的替代方案嗎？我認為這就是故事的一部分。 。

And frankly, Benoit, we're out selling it hard. We believe it can become a complement to Vancouver in the West Coast of California and give shippers another option. And frankly, our partner, Hapag-Lloyd, and in their announcement with Maersk and the formation of Gemini as you look to 2025, with Maersk's relationship and doubling the capacity at Lazaro, I think, presents again, CPKC a tremendous opportunity with those companies.

坦白說，伯努瓦，我們正在努力推銷它。我們相信它可以成為加州西海岸溫哥華的補充，為托運人提供另一種選擇。坦白說，我們的合作夥伴赫伯羅特在與馬士基的聲明中以及展望2025 年成立Gemini 時，我認為，與馬士基的關係以及將Lazaro 的產能翻倍，我認為再次為CPKC 提供了與這些公司合作的巨大機會。

I'd say our St. John volumes have sort of settled in and actually moderated here lately. I think we are seeing some impacts in East Coast imports relative to some of the trade challenges I guess, that the world is facing in that port. Now that being said, we're watching close what's going to take place at the Port of Montreal in terms of a potential strike there. And if, in fact, we get a fall labor disruption on the U.S. East Coast, I think both of those were keeping -- both of those stories topical with the steamship lines as St. John being an alternative if, in fact, we do have disruptions in that area.

我想說，我們的《聖約翰》卷已經在某種程度上安頓下來，並且最近實際上在這裡進行了主持。我認為，相對於我認為世界在該港口面臨的一些貿易挑戰，我們看到了東海岸進口的一些影響。話雖這麼說，我們正在密切關注蒙特利爾港將發生的潛在罷工事件。事實上，如果美國東海岸秋季勞動力中斷，我認為這兩個故事都與輪船航線有關，因為聖約翰是一個替代方案，如果事實上我們確實這樣做的話該地區受到干擾。

Your next question comes from Ravi Shanker with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Ravi Shanker。

This is Christine on for Ravi. Apologies for earlier. Can you guys hear me now?

這是拉維的克莉絲汀。為之前的事情道歉。你們現在聽得到我說話嗎？

Yes, we can.

我們可以。

Great. Maybe taking a step back, I want to talk about the longer-term guidance and particularly kind of conversion of the $5 billion pipeline you guys have outlined. At the Investor Day, it definitely felt very idiosyncratic still does, but it does feel like the macro may be disguising some of the success you guys are having around converting that pipeline.

偉大的。也許退一步，我想談談長期指導，特別是你們概述的 50 億美元管道的轉換。在投資者日，確實感覺非常特殊，但確實感覺宏觀可能掩蓋了你們在轉換管道方面取得的一些成功。

So maybe you can just remind us and parse out kind of the long-term guidance, how much you feel is idiosyncratic versus maybe meeting the macro backdrop to be more supportive in terms of unlocking the full potential of that pipeline?

因此，也許您可以提醒我們並解析出長期指導，您覺得有多少是特殊的，而不是滿足宏觀背景，以便在釋放該管道的全部潛力方面提供更多支持？

Maybe just a couple of comments on there. In terms of what we laid out in Investor Day, I would say we're ahead of plan in terms of my expectations on delivering on -- frankly, all those categories. Certainly, some may be a little quicker than others. As a primary example is just talking about Lazaro. I do see that being maybe a little bit more back half of this year and 2025 story in terms of cross-border opportunities. But that being said, I would say the area of automotive has really maybe presented itself as more of a pull-ahead opportunity for this network in the development of that closed-loop model that Keith spoke about and the benefits that the franchise provides the OEMs in that area.

也許只是一些評論。就我們在投資者日所製定的內容而言，我想說，就我對實現所有這些類別的期望而言，我們已經提前了。當然，有些人可能比其他人快一點。拉札羅就是一個主要的例子。我確實認為，就跨境機會而言，今年下半年和 2025 年的故事可能會更晚。但話雖這麼說，我想說的是，在基思談到的閉環模型的開發以及特許經營為原始設備製造商提供的好處中，汽車領域實際上可能更多地表現為該網絡的拉動機會在那個地區。

I would say we were pretty adamant and clear around finishing 2023 at a $350 million revenue run rate. I remain very confident in that. We'll double that exiting 2024. And frankly, that will put us right in line or maybe even a little ahead of what we laid out at Investor Day with those areas. I think your call out around the macro, not being very supportive particularly maybe if you think about some of the intermodal and truck conducive type products is right.

我想說的是，我們對於 2023 年營收達到 3.5 億美元的目標非常堅定且明確。我對此仍然非常有信心。到 2024 年，我們將把這個數字翻倍。我認為你對宏觀的呼籲，不是非常支持，特別是如果你考慮一些聯運和卡車有利於類型的產品，這是正確的。

We're trying not to worry about that. Control what we can control, create the product. And if we get a macro tailwind, it's just going to provide more upside to the story.

我們正在努力不去擔心這個問題。控制我們能控制的，創造產品。如果我們得到宏觀的順風，它只會為這個故事提供更多的好處。

We have reached our allotted time for Q&A. I would now like to turn the call back over to Mr. Keith Creel.

我們已經到達了指定的問答時間。我現在想把電話轉回基斯·克里爾先生。

Thank you. Listen, thank you for joining us again today and give us a chance to just give you an update. And I hope what you take away from this is, this company is in a strong position. We're in a strong position to achieve the guidance that we laid out in our multiyear plan. We're in a strong position to achieve the guidance that we've laid out for this year. We've got to get through this potential work outage that's ahead of us. We've got to see what the macro does, but I can tell you, this is a very unique story. It's a unique network that's been created that's unparalleled in this industry. We're 1 year old on a journey of our forever story, creating the most relevant rail network in North America. .

謝謝。聽著，感謝您今天再次加入我們，並給我們一個機會向您提供最新消息。我希望您從中得到的訊息是，這家公司處於強勢地位。我們有能力實現我們在多年計劃中製定的指導方針。我們有能力實現今年制定的指導方針。我們必須解決即將發生的潛在停工問題。我們必須看看宏的作用，但我可以告訴你，這是一個非常獨特的故事。這是一個在該行業中無與倫比的獨特網絡。我們已經一歲了，正在踏上永恆故事的旅程，創造北美最相關的鐵路網。 。

I couldn't be more proud to work here and serve with these fine men and women that make this happen day in and day out, and we'll continue to work hard to meet and exceed our investors' expectations, our employees, commitments we made to them as well as our customers' commitments. I think that's a recipe for success, and I'm confident this team will achieve that, if not exceed that.

我非常自豪能夠在這裡工作，與這些優秀的男女一起服務，使這一切日復一日地發生，我們將繼續努力工作，以滿足並超越投資者的期望、員工的期望、我們的承諾。他們以及我們客戶的承諾。我認為這是成功的秘訣，我相信這個團隊將實現這一目標，甚至超越這個目標。

Have a great day, and we'll talk to everyone soon.

祝您有美好的一天，我們很快就會與大家交談。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。