CSX Corp (CSX) 2023 Q3 法說會逐字稿

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2023 CSX Corporation Earnings Conference Call. (Operator Instructions)

午安.我叫克里斯塔，今天我將擔任你們的會議接線生。現在，我歡迎大家參加 CSX 公司 2023 年第三季財報電話會議。 （操作員說明）

Mr. Matt Korn, Head of Investor Relations. You may begin your conference.

Matt Korn 先生，投資人關係主管。您可以開始您的會議了。

Thank you, Krista. Hello, everyone, and welcome to our third quarter earnings call. Joining me this afternoon are Joe Hinrichs, President and Chief Executive Officer; Mike Cory, Executive Vice President and Chief Operating Officer; Kevin Boone, Executive Vice President and Chief Commercial Officer; and Sean Pelkey, Executive Vice President and Chief Financial Officer.

謝謝你，克里斯塔。大家好，歡迎參加我們的第三季財報電話會議。今天下午與我一起出席的還有總裁兼執行長 Joe Hinrichs； Mike Cory，執行副總裁兼營運長；凱文‧布恩，執行副總裁兼首席商務官；執行副總裁兼財務長肖恩‧佩爾基 (Sean Pelkey)。

In the presentation accompanying this call, you will find our forward-looking disclosure on Slide 2 followed by our non-GAAP disclosure on Slide 3. And with that, it is now my pleasure to introduce Mr. Joe Hinrichs.

在本次電話會議隨附的簡報中，您將在投影片2 上看到我們的前瞻性揭露，然後在投影片3 上看到我們的非GAAP 揭露。現在，我很高興向您介紹Joe Hinrichs 先生。

All right. Thank you, Matthew, and hello, everyone, and thank you for joining our conference call today. Over this last year, CSX mission and message have remained clear and consistent. We have seen great progress with our ONE CSX initiatives, which are helping to build a focused, collaborative culture that enables all of our employees to feel engaged, energized and focused on working better together. At the same time, our service levels continue to lead the industry. These successes go hand in hand and as our customers see that CSX is truly dedicated to providing consistent, reliable service over the long term, they are responding positively.

好的。謝謝馬修，大家好，謝謝您今天參加我們的電話會議。去年，CSX 的使命和訊息始終清晰一致。我們看到 ONE CSX 計劃取得了巨大進展，這些計劃有助於建立一種專注的協作文化，使我們所有的員工都感到投入、充滿活力並專注於更好地合作。同時，我們的服務水準持續領先產業。這些成功是相輔相成的，當我們的客戶看到 CSX 真正致力於長期提供一致、可靠的服務時，他們做出了積極的回應。

As we look forward to all the opportunities ahead, we are confident that these efforts we are making will drive clear, sustainable, profitable growth. And we took another step forward on this path this quarter, thanks to the hard work put in by our ONE CSX team, our railroad is running well. Our merchandise business remained steady, and our coal shipments were very strong. Our domestic intermodal volumes are growing well compared to last year, while our international intermodal business though down year-over-year has stabilized.

當我們期待未來的所有機會時，我們相信我們所做的這些努力將推動明確、可持續、有利可圖的成長。本季我們在這條道路上又向前邁進了一步，得益於 ONE CSX 團隊的辛勤工作，我們的鐵路運作良好。我們的商品業務保持穩定，煤炭運輸也非常強勁。與去年相比，我們的國內多式聯運量成長良好，而國際多式聯運業務雖然年減，但已趨於穩定。

Overall, our network continues to perform, and I am pleased with how the team has succeeded in managing the things that we can control. I continue to be very excited about all the potential ahead for CSX.

總體而言，我們的網路繼續運行，我對團隊如何成功管理我們可以控制的事物感到滿意。我仍然對 CSX 未來的所有潛力感到非常興奮。

Now let's turn to Slide 5 to review the highlights for the third quarter. First, we moved over 1.5 million carloads this quarter, which was down just slightly from a year ago with flat year-over-year performance in merchandise and 9% growth in coal. Our operating ratio ticked up in the low 60s and as we face challenges that we have been talking about all year, with lower fuel recovery, reduced intermodal storage revenue, lower export coal prices and higher cost of inflation, most notably with our labor contract. As in previous quarters, our margin does include the impact of the quality carriers trucking business.

現在讓我們轉向幻燈片 5 來回顧第三季度的亮點。首先，本季我們的運輸量超過 150 萬車，與去年同期相比略有下降，商品較去年同期表現持平，煤炭成長 9%。我們的營運比率在 60 左右上升，我們面臨著全年都在談論的挑戰，包括燃料回收率下降、聯運倉儲收入減少、出口煤炭價格下降和通膨成本上升，尤其是我們的勞動合約。與前幾季一樣，我們的利潤確實包括優質承運商貨運業務的影響。

Second, we generated $3.6 billion in revenue, which was 8% lower than the previous year. Last year, we benefited from high diesel prices and record export coal benchmarks that were both much lower this quarter.

其次，我們創造了 36 億美元的收入，比前一年下降了 8%。去年，我們受惠於高柴油價格和創紀錄的出口煤炭基準，而本季這些基準均大幅降低。

Third, even with the year-over-year changes we face -- changes we faced, operating income still came in at $1.3 billion for the quarter compared to a little under $1.6 billion last year and our earnings per share were $0.42, and down from $0.52. While I'm proud of what we accomplished this quarter given all the challenges, none of us here are satisfied with these results. We're not sitting back and simply waiting for markets to turn. We are looking throughout the entire network to see where we can operate more efficiently. We continue to work closely with our customers to build our business pipeline and drive more volume onto the railroad and we are emphasizing the importance of cost discipline to every team in every 1 of our locations.

第三，即使我們面臨同比變化，本季營業收入仍為 13 億美元，而去年略低於 16 億美元，每股收益為 0.42 美元，低於去年同期0.52 美元。雖然我對我們本季在面臨所有挑戰的情況下所取得的成就感到自豪，但我們這裡沒有人對這些結果感到滿意。我們不會袖手旁觀，只是等待市場轉向。我們正在整個網路中尋找可以更有效運作的地方。我們繼續與客戶密切合作，建立我們的業務管道並推動更多鐵路運輸量，我們向我們每個地點的每個團隊強調成本紀律的重要性。

One of the reasons I'm so confident about what is ahead for CSX is a great leadership team that we have in place. As you all saw last month, we were very pleased to announce that Mike Cory has joined our railroad as Chief Operating Officer. Mike brings great experience and a thorough understanding of scheduled railroading and he also shares our deep dedication and appreciation for customer service and the employees who provide that service day in and day out. Mike arrived in Jacksonville a few weeks ago and is now here joining us on this call.

我對 CSX 的未來充滿信心的原因之一是我們擁有一支出色的領導團隊。正如你們上個月看到的那樣，我們非常高興地宣布邁克·科里 (Mike Cory) 已加入我們的鐵路擔任首席營運官。麥克帶來了豐富的經驗和對定期鐵路的透徹了解，他也分享了我們對客戶服務和日復一日提供服務的員工的深切奉獻和感激之情。麥克幾週前抵達傑克遜維爾，現在在這裡加入我們的電話會議。

And so I will now turn it over to Mike to say a few words and cover our operational performance over the quarter.

因此，我現在將把它交給麥克說幾句話，並介紹我們本季的營運表現。

Well, thank you very much, Joe. And I truly appreciate the words, and I'm extremely thankful for the opportunity to work with such a committed team of people with so much potential to lead this industry with great customer service. safety, service, efficiency and along with engagement with each other, our customers and stakeholders is how we're going to leverage this great franchise to be best-in-class. And I've been here short time, pretty much less than a month, but I've been really busy. I visited major yards, coal export facilities and I've spent time in headquarters meeting with an array of people from different functions of the railroad.

嗯，非常感謝你，喬。我真的很欣賞這些話，我非常感謝有機會與這樣忠誠的團隊合作，他們有巨大的潛力以卓越的客戶服務引領這個行業。安全、服務、效率以及與彼此、我們的客戶和利害關係人的互動是我們如何利用這個偉大的特許經營權成為一流的。我來這裡的時間很短，幾乎不到一個月，但我真的很忙。我參觀了主要的堆場、煤炭出口設施，並在總部與來自鐵路不同職能部門的一系列人員會面。

In person, I've listened to, and I've spoken with employees from all across the company. From people on the ground executing the plan from people developing the plan, to sales and marketing, finance, [fielded] network ops, IT facilities and the list goes on. But what really resonates with me is their collective desire to be the best they can be for our ONE CSX team and our customers. We've got great talent in all our functions and our job is to connect the talent and maximize the value of their efforts.

我親自聆聽了公司各員工的意見，並與他們進行了交談。從現場執行計劃的人員到製定計劃的人員，再到銷售和行銷、財務、[現場]網路營運、IT 設施，這樣的例子不勝枚舉。但真正引起我共鳴的是他們的集體願望，為我們的 ONE CSX 團隊和客戶做到最好。我們的所有職能部門都擁有優秀的人才，我們的工作就是連結人才並最大限度地發揮他們的努力價值。

We're doing this in order for our team to be the best at providing what our customers need in the safest and most efficient way. We're doing this because decision-making, acting on what they see and know, must be quick and done as close to where the opportunity is taking place. That said, I see opportunities, 1 of which and to me, the most important at this stage is to create and share a robust and visible flow of information that will drive improvement through the continuation of the lean principles to define scheduled railroad. We all need to see the effects of our collective decisions as fast as possible to be more nimble and responsive to our customer's needs. As well, collectively, we'll learn and share best practices throughout the organization from this and other available data as it gives us a platform to learn as it happens.

我們這樣做是為了讓我們的團隊能夠以最安全、最有效的方式最好地滿足客戶的需求。我們這樣做是因為決策必須根據他們所看到和知道的情況採取行動，並且必須迅速並盡可能靠近機會發生的地方。也就是說，我看到了機遇，其中之一對我來說，現階段最重要的是創建和共享強大且可見的資訊流，這將透過延續精益原則來定義定期鐵路來推動改進。我們都需要盡快看到集體決策的效果，以便更有彈性地回應客戶的需求。此外，我們將共同從該數據和其他可用數據中學習並在整個組織中分享最佳實踐，因為它為我們提供了一個即時學習的平台。

This will create the speed and the trust that we need to move together as 1 team. So let's go over to the slides and we'll start looking at our safety metrics. Our third quarter injury and accident rates increased as we saw a track caused and human factor incidents trend upward. And these aren't acceptable outcomes for us. And we're taking action to continuously improve the environment our employees operate in as well as the overall safety culture. Human factor incidents especially with newly hired employees has been 1 of the trends this year that have driven the increase.

這將創造我們作為一個團隊共同行動所需的速度和信任。讓我們看一下投影片，然後開始研究我們的安全指標。我們第三季的傷害和事故率增加，因為我們看到賽道造成的事故和人為因素事故呈上升趨勢。這些結果對我們來說是不可接受的。我們正在採取行動，不斷改善員工的工作環境以及整體安全文化。人為事件，尤其是新聘員工的人為事件，是今年推動這一成長的趨勢之一。

In Q3, the team added additional time for initial training for our new conductors at our ready centered in Atlanta. We also looked at the length of training when new hires graduate from Atlanta and report back to their home terminals and we increased the length of that training as well. The increased training gives us more time to develop skills with our new hires, but we also determined we needed to place resources to spend that time with them. So we trained unionized mentors and now we have them across the property with the new hires. These mentors are available to teach and answer questions, reinforcing the ONE CSX culture by being part of developing and coaching their newly hired peers.

在第三季度，團隊增加了額外的時間，在亞特蘭大的準備中心為我們的新指揮進行初步培訓。我們也研究了新員工從亞特蘭大畢業並返回家鄉終端機報到時的培訓時長，我們也增加了培訓時間。增加的培訓讓我們有更多的時間培養新員工的技能，但我們也決定需要投入資源與他們共度時光。因此，我們培訓了工會導師，現在我們讓他們與新員工一起在整個酒店工作。這些導師可以教導和回答問題，透過參與培養和指導新聘用的同事來強化 ONE CSX 文化。

Lastly, on safety, we're not taking our focus off life-changing events. We've partnered with DEKRA, specialty risk management group to roll out training to help employees self-identify risk in an ever-changing environment. Now traditionally, railroads train on operating rules. But we can't write a rule for everything or test our way to a positive safety culture. Both identification of risk and eliminating that risk when possible is 1 of our major goals moving into Q4 and beyond.

最後，在安全性方面，我們不會將注意力從改變生活的事件上轉移開。我們與專業風險管理團隊 DEKRA 合作推出培訓，幫助員工在不斷變化的環境中自我識別風險。現在傳統上，鐵路依照營運規則進行培訓。但我們無法為所有事情制定規則或測試積極的安全文化。識別風險並在可能的情況下消除風險是我們進入第四季度及以後的主要目標之一。

So let's go over to the next slide on our operating highlights. Our end-to-end train velocity averaged 17.6 miles an hour in the third quarter, slightly lower than last quarter, but still up substantially from the same period in 2022. Well averaged 9.6 hours, an improvement of nearly 20% compared to the same period last year.

讓我們看下一張幻燈片，了解我們的營運亮點。第三季列車端到端時速平均為 17.6 英里/小時，比上季略有下降，但仍比 2022 年同期大幅成長。平均時速為 9.6 小時，比去年同期提高了近 20%去年期間。

Intermodal trip plan performance was 94% and increased by 4 percentage points year-over-year, while carload trip plan performance was 82% and improved by 25 percentage points. Our service performance remains fluid. And though we did see a slight seasonal dip during the middle of the quarter during peak vacation and holiday season, our metrics are rebounding into the fourth quarter. We all know and we will -- we all know we will, and we're all working together to improve these results.

多式聯運出行計畫績效為 94%，年增 4 個百分點；整車出行計畫績效為 82%，較去年同期提升 25 個百分點。我們的服務表現仍然不穩定。儘管我們確實在假期高峰期和假日期間的季度中期出現了輕微的季節性下降，但我們的指標正在反彈到第四季。我們都知道並且我們會——我們都知道我們會，並且我們正在共同努力改善這些結果。

Our ability to leverage this great franchise by connecting the people and the vast talent they bring will allow us to improve all key aspects of our business with a strong focus on those lean management principles that drive reliable, consistent service. I'm really confident that connecting all of these dots together is going to result in a strong team now and more importantly, bench strength for the future. This is really our 1 CSX goal.

我們有能力透過連結人員和他們帶來的大量人才來利用這項偉大的特許經營權，這將使我們能夠改善我們業務的所有關鍵方面，並重點關注那些推動可靠、一致服務的精益管理原則。我非常有信心，將所有這些點連接在一起將形成一支強大的團隊，更重要的是，未來的板凳力量。這確實是我們 1 CSX 的目標。

And so with that, over to you, Kevin.

那麼，就交給你了，凱文。

Thank you. Mike and I have been spending a lot of time together, and it's really great to have you on the team. To start, I'm pleased to say that our improving service levels are a key differentiator in the marketplace. And I can't thank the entire team enough for all of the hard work. These improvements are being recognized by our customers and are leading to new initiatives and discussions around how CSX can partner with our customers for growth.

謝謝。麥克和我在一起度過了很多時間，很高興有你加入我們的團隊。首先，我很高興地說，我們不斷提高的服務水準是市場上的關鍵差異化因素。我對整個團隊的辛勤工作感激不盡。這些改進得到了我們客戶的認可，並引發了圍繞 CSX 如何與客戶合作實現成長的新舉措和討論。

Our ability to grow profitably requires us to be proactive, quickly adapt to changing markets and think differently. I'm proud of how well we have been able to coordinate with operations to drive both growth and efficiencies. With Mike in his role, we have only seen these efforts accelerate. It's no surprise that overall economic conditions remain uncertain, but it has been encouraging to see gradually improving sequential trends across several of our end markets over this past quarter.

我們實現獲利成長的能力要求我們積極主動、快速適應不斷變化的市場並以不同的方式思考。我為我們能夠很好地協調營運以推動成長和效率感到自豪。在麥克擔任他的角色後，我們只看到這些努力的加速。整體經濟狀況仍然不確定並不奇怪，但令人鼓舞的是，我們的幾個終端市場在過去一個季度中的連續趨勢逐漸改善。

We see many reasons to be optimistic as we continue to build our business pipeline with an eye toward 2024 and beyond. Turning to Slide 10 to look at our merchandise performance for the quarter. Our revenues were down modestly compared to last year on flat volumes as solid core pricing gains were offset by lower fuel surcharge and negative mix effects in certain markets. Our automotive business continued to show strength with higher production and business wins, driving a 19% increase in volume year-over-year. Minerals continues to perform very well, sustained by infrastructure activity, that is supporting new cement facilities and healthy demand for aggregates. Metals performance has also benefited from our service levels, leading to competitive wins and solid demand.

我們有很多理由保持樂觀，因為我們著眼於 2024 年及以後繼續建立我們的業務管道。轉向投影片 10，查看我們本季的商品表現。與去年相比，我們的收入略有下降，銷量持平，因為燃油附加費降低和某些市場的負面混合效應抵消了核心定價的強勁增長。我們的汽車業務持續展現實力，產量和業務勝利增加，銷量較去年同期成長 19%。受基礎設施活動的支撐，礦產持續表現良好，並支持新的水泥設施和對骨材的健康需求。金屬性能也受益於我們的服務水平，從而帶來競爭優勢和穩定的需求。

Our chemical franchise, while challenged has begun to stabilize and even showed some promising improvement in domestic plastics over the quarter. Fertilizer revenue growth was strong in the quarter despite volumes that were impacted by weaker short-haul movements with production challenges in Florida. As we expected, the strong Southeastern corn crop meant less rail volume for grain and Forest products remains 1 of the most challenged areas with many mills still taking meaningful downtime.

我們的化學品業務雖然受到挑戰，但已開始穩定，甚至在本季國內塑膠方面顯示出一些有希望的改善。儘管產量受到短途運輸疲軟和佛羅裡達州生產挑戰的影響，但本季化肥收入成長強勁。正如我們預期的那樣，東南部玉米作物的強勁意味著穀物和林產品的鐵路運輸量減少，仍然是面臨最大挑戰的地區之一，許多工廠仍在大幅停工。

As we start the fourth quarter, we are encouraged by the early October volume trends with most markets showing sequential momentum. We anticipate a strong rebound for agg and food as a strong Midwest harvest kicks in. And across other markets, we expect our service improvements to drive opportunities to win in the marketplace as we focus on modal conversion.

當我們進入第四季度時，我們對 10 月初的成交量趨勢感到鼓舞，大多數市場都表現出連續的勢頭。我們預計，隨著中西部地區豐收的到來，農產品和食品將出現強勁反彈。在其他市場，我們預計我們的服務改進將推動在市場上獲勝的機會，因為我們專注於模式轉換。

Turning to Slide 11. Third quarter coal revenue declined 5%, even though volumes were very strong, growing 9% compared to last year. export demand continued to be a major volume driver growing 26% with the hot summer also supporting solid domestic demand. Strong coal volumes minimized the effects of lower international benchmark prices, which were setting all-time records this time last year. The key difference was met coal pricing where global benchmarks were much lower than in the same period last year. Sequentially, our coal RPU declined 11% compared to our guidance of mid-teens decline with stronger-than-expected shipments to longer length of haul southern utility customers driving the moderate outperformance.

轉向幻燈片 11。第三季度煤炭收入下降 5%，儘管銷量非常強勁，與去年相比增長 9%。出口需求仍然是銷量成長 26% 的主要推動力，炎熱的夏季也支撐了強勁的國內需求。強勁的煤炭產量最大限度地減少了國際基準價格下跌的影響，去年這個時候國際基準價格創下了歷史紀錄。主要差異在於煤炭定價，全球基準遠低於去年同期。隨後，我們的煤炭 RPU 與我們指導的 11% 左右的下降相比下降了 11%，向長途運輸南方公用事業客戶的發貨量強於預期，推動了適度的優異表現。

Looking ahead to the last quarter of the year, we expect export markets to remain strong and are pleased with the increases in international benchmarks that we've seen over the last several weeks. On the domestic side, we have seen stockpiles normalize and demand into 2024 will be driven by winter weather and related demand needs. The increase in global benchmark prices should benefit our cold yields next quarter. So I would remind you that we have a diverse portfolio of met customers, and we have seen U.S.-based met coal benchmarks and those in other regions lag spot prices in Australia.

展望今年最後一個季度，我們預計出口市場將保持強勁，並對過去幾週我們看到的國際基準的成長感到高興。在國內方面，我們看到庫存正常化，2024 年的需求將受到冬季天氣和相關需求的推動。全球基準價格的上漲應該有利於我們下個季度的冷產量。因此，我想提醒您，我們擁有多元化的冶金客戶組合，我們已經看到美國的冶金煤炭基準和其他地區的基準價格落後於澳洲的現貨價格。

Turning to intermodal on Slide 12. As a whole, the business remained challenged with revenue declining by 14% and total volume decreasing by 7% and Overall, RPU declined by 8% year-over-year, with the impact of lower fuel surcharge accounting for the decline, partially offset by positive price, that said, we are seeing encouraging trends from our domestic business, where volume turned positive on a year-over-year basis early in the summer and has continued to improve since then.

轉向幻燈片 12 上的多式聯運。總體而言，業務仍然面臨挑戰，收入下降 14%，總量下降 7%，總體而言，受燃油附加費核算降低的影響，RPU 同比下降 8%儘管如此，我們的國內業務仍呈現出令人鼓舞的趨勢，銷量在夏初同比轉為正數，並自此之後持續改善。

We offer a diverse mix of transportation solutions within domestic intermodal, and we've seen great results from our strong channel partnerships and our direct relationships with major retailers. Our team has been successful in converting traffic off the highway in a market facing plentiful truck capacity, which is a testament to the team and the market-leading service product. Meanwhile, International intermodal activity has stabilized, but remains weak. We haven't seen any clear signs of a positive inflection yet. Retailers remain concerned about the health of the consumer and though destocking may have slowed, we haven't seen this turn into sustained increases in order rates or imports.

我們在國內多式聯運中提供多樣化的運輸解決方案，並且我們透過強大的通路合作夥伴關係以及與主要零售商的直接關係取得了巨大的成果。我們的團隊在卡車運力充足的市場中成功地將交通從高速公路轉移出來，證明了我們的團隊和市場領先的服務產品。同時，國際多式聯運活動已趨於穩定，但仍疲軟。我們還沒有看到任何積極變化的明顯跡象。零售商仍然擔心消費者的健康，儘管去庫存可能已經放緩，但我們還沒有看到這轉變為訂單率或進口的持續成長。

For the rest of the year, we expect trends to largely continue as they were over the third quarter with domestic gradually strengthening supported by our team's strong sales efforts. While we prepare for the turning point for international, Recall that we saw a meaningful drop-off in our intermodal volume in the back half of the fourth quarter in 2022 as markets slowed substantially, which will benefit our reported growth rate for the current quarter.

在今年剩餘時間裡，我們預計趨勢基本上將延續第三季的趨勢，在我們團隊強勁的銷售努力的支持下，國內市場逐漸加強。在我們為國際市場的轉折點做準備的同時，請回想一下，由於市場大幅放緩，我們的多式聯運量在2022 年第四季度後半段大幅下降，這將有利於我們報告的本季度增長率。

Slide 13 provides a clear illustration of the encouraging signs we're seeing within our intermodal business. On a year-over-year basis, Domestic Intermodal has shown a favorable trend since the beginning of 2023, turning positive around midyear and steadily improving since, while international volumes remained lower compared to 2022, we've seen stability in the past few months. Altogether, across all of our businesses, our team continues to push forward across multiple initiatives aimed at winning wallet share, converting trucking traffic and bringing new customers to the railroad.

投影片 13 清楚地說明了我們在多式聯運業務中看到的令人鼓舞的跡象。與去年同期相比，國內多式聯運自 2023 年初以來呈現出良好的趨勢，在年中左右轉正並穩步改善，而國際貨運量與 2022 年相比仍較低，但過去幾個月保持穩定。總而言之，在我們所有的業務中，我們的團隊繼續推動多項舉措，旨在贏得錢包份額、轉變貨運流量並為鐵路帶來新客戶。

We remain confident that our leading service performance will continue to provide opportunities to win business. And we know that we have the resources and capacity in place to deliver growth when the market environment inflects. I'm proud of what the collective CSX team has accomplished this quarter and I'm excited about all the potential ahead.

我們仍然相信，我們領先的服務表現將繼續提供贏得業務的機會。我們知道，當市場環境改變時，我們擁有足夠的資源和能力來實現成長。我對 CSX 團隊本季所取得的成就感到自豪，並對未來的所有潛力感到興奮。

Now I'll turn it over to Sean to discuss financials.

現在我將把它交給肖恩討論財務問題。

Thank you, Kevin, and good afternoon. Third quarter operating income of $1.3 billion was lower by 18% or $284 million. These results include nearly $350 million of year-over-year impacts from lower intermodal storage revenue, export coal benchmark prices and fuel recovery, partly offset by $42 million of favorability related to last year's labor agreement adjustment. Suffice it to say, this quarter should represent the peak year-over-year impact from these discrete items.

謝謝你，凱文，下午好。第三季營業收入為 13 億美元，下降 18%，或 2.84 億美元。這些結果包括聯運倉儲收入下降、出口煤炭基準價格和燃料回收帶來的近 3.5 億美元的年比影響，部分被去年勞工協議調整相關的 4,200 萬美元的優惠所抵消。可以說，本季應該代表這些離散項目的年比影響達到高峰。

Revenue fell by 8% or $323 million, despite strong pricing across many -- the merchandise portfolio along with positive volume trends across many merchandise markets as well as domestic intermodal. The operating team also worked tirelessly to meet customer needs and deliver a 9% increase in coal volume. Across merchandise, Coal and Intermodal, revenue excluding fuel recovery increased 2% in the quarter and was up mid-single digits, excluding the impacts of coal RPU headwinds.

儘管許多商品的定價強勁，而且許多商品市場以及國內多式聯運的銷售量呈現正面趨勢，但收入仍下降了 8%，即 3.23 億美元。營運團隊也孜孜不倦地滿足客戶需求，煤炭量增加了9%。在商品、煤炭和多式聯運方面，不包括燃料回收的收入在本季度增長了 2%，並且增長到中個位數（不包括煤炭 RPU 逆風的影響）。

Expenses were lower by 2%, and I will discuss the line items in more detail on the next slide. Interest and other expense was $13 million higher compared to the prior year. Income tax expense decreased $32 million as the impact of lower pretax earnings more than offset a prior year favorable state tax item. And this quarter's effective tax rate came in at 24.9%. As a result, earnings per share fell by $0.10, including nearly $0.12 of impact from the previously mentioned discrete items.

費用降低了 2%，我將在下一張投影片中更詳細地討論這些項目。利息和其他費用比前一年增加了 1300 萬美元。所得稅費用減少了 3,200 萬美元，因為稅前收入下降的影響遠遠抵消了上一年有利的州稅項目。本季的有效稅率為24.9%。結果，每股收益下降了 0.10 美元，其中包括前面提到的離散項目帶來的近 0.12 美元的影響。

Let's now turn to the next slide and take a closer look at expenses. Total third quarter expense decreased by $39 million. Lower fuel prices and cycling the prior year labor true-up were mostly offset by the impacts of inflation and higher depreciation. Turning to the individual line items. Labor and fringe expense decreased $7 million as the prior year union labor adjustment was largely offset by inflation and increased headcount. Heightened attention to overtime benefited cost per employee particularly in our mechanical workforce where overtime ratios are now running at multiyear lows. Purchase services and other expense increased $25 million versus last year, including $16 million associated with higher casualty expense.

現在讓我們翻到下一張投影片，仔細看看費用。第三季總費用減少了 3,900 萬美元。較低的燃料價格和去年的勞動力調整大部分被通貨膨脹和較高的折舊的影響所抵消。轉向各個行項目。勞動力和附加費用減少了 700 萬美元，因為去年的工會勞動力調整在很大程度上被通貨膨脹和員工人數增加所抵消。對加班的高度關注有利於每位員工的成本，特別是在我們的機械勞動力中，加班率目前處於多年來的最低水平。採購服務和其他費用與去年相比增加了 2500 萬美元，其中與傷亡費用增加相關的 1,600 萬美元。

Turning to sequential performance versus Q2 on the right-hand side of the page, network performance and numerous cost control initiatives in the quarter drove a nearly $20 million reduction in PS&O across our operating departments. We expect these savings to remain in the fourth quarter aside from normal seasonality. Depreciation was up $21 million as a result of last year's equipment study as well as a larger asset base.

轉向頁面右側與第二季相比的連續效能，本季的網路效能和眾多成本控制措施推動我們營運部門的 PS&O 減少了近 2000 萬美元。我們預計，除了正常的季節性因素外，這些節省將在第四季度繼續存在。由於去年的設備研究以及更大的資產基礎，折舊增加了 2,100 萬美元。

Fuel cost was down $89 million, mostly driven by a lower gallon price. This was partially offset by higher consumption, including approximately 2.5 million gallons recognized from prior periods. Adjusting for this fuel efficiency was still unfavorable versus the prior year, and Mike has brought an increased focus on this critical measure. While seasonality will impact fuel efficiency in Q4, we fully expect to get back on trend.

燃料成本下降了 8900 萬美元，主要是由於加侖價格下降。這被消耗量增加部分抵消，其中包括前期確認的約 250 萬加侖。與前一年相比，針對燃油效率的調整仍然不利，麥克更加關注這項關鍵措施。雖然季節性因素將影響第四季度的燃油效率，但我們完全預期會恢復趨勢。

Equipment and rents was $10 million favorable, driven by faster freight car cycle times across all markets. These benefits were partly offset by costs related to higher automotive volumes. Finally, property gains were $21 million unfavorable in the quarter. As a reminder, we are cycling over $50 million of prior year gains in Q4 and expect sales this year to be minimal.

由於所有市場的貨運車週期時間加快，設備和租金優惠達 1000 萬美元。這些好處部分被汽車產量增加相關的成本所抵銷。最後，本季房地產收益為 2,100 萬美元。提醒一下，我們第四季的銷售額較去年同期成長了 5,000 萬美元以上，預計今年的銷售額將微乎其微。

Now turning to cash flow and distributions on Slide 17. Reflecting the discrete factors I discussed earlier, free cash flow is down from the prior year, but remains strong, supporting investments in the safety and reliability of our network as well as an increased level of high-return strategic investments. Robust cash flow has also supported over $3.5 billion in shareholder returns so far this year, including $2.9 billion in share repurchases and over $650 million of dividends.

現在轉向幻燈片17 上的現金流和分配。自由現金流比上一年有所下降，但仍然強勁，這反映了我之前討論的離散因素，支持對我們網路的安全性和可靠性的投資以及提高的水平高回報策略投資。今年迄今為止，強勁的現金流也支持了超過 35 億美元的股東回報，其中包括 29 億美元的股票回購和超過 6.5 億美元的股息。

Economic profit, as measured by CSX cash earnings is about $160 million lower year-to-date, impacted again by intermodal storage revenue and export coal pricing. Nevertheless, the focus on economic profit is helping to incent a pipeline of high-return initiatives that will deliver growth and ongoing efficiency gains.

年初至今，以 CSX 現金收入衡量的經濟利潤減少了約 1.6 億美元，再次受到多式聯運倉儲收入和出口煤炭定價的影響。儘管如此，對經濟利潤的關注有助於激勵一系列高回報舉措，從而實現成長和持續的效率提升。

Now with that, let me turn it back to Joe for his closing remarks.

現在，讓我回到喬的結案陳詞。

All right. Thank you, Sean. Now as shown on Slide 19, we will finish with some updated comments on our outlook as we approach the final quarter of 2023. We continue to expect low single-digit growth in revenue ton miles for the full year, supported by our consistent performance in merchandise and export coal. Automotive and minerals remain important growth areas. So obviously, we're watching developments with the [Toy 3] automakers in [EW] very closely.

好的。謝謝你，肖恩。現在，如幻燈片19 所示，隨著2023 年最後一個季度的臨近，我們將對我們的前景進行一些更新的評論。我們繼續預計全年收入噸英里數將出現低個位數增長，這得益於我們在商品和出口煤炭。汽車和礦物仍然是重要的成長領域。顯然，我們正在密切關注 [EW] 的 [Toy 3] 汽車製造商的進展。

As Kevin mentioned, we also look for a substantial rebound in our agg and food business over the fourth quarter. Export coal volumes remained strong as global demand stays high for U.S. met and thermal coal. For domestic coal, we anticipate some slowdown from the third quarter, which benefited from hot summer weather. Though so far this quarter, we continue to be pleased with our shipment levels.

正如凱文所提到的，我們也預計第四季度我們的農產品和食品業務將大幅反彈。由於全球對美國冶金煤和動力煤的需求維持高位，煤炭出口量依然強勁。對於國內煤炭，我們預計第三季將放緩，這得益於夏季炎熱的天氣。儘管本季度到目前為止，我們仍然對我們的出貨水準感到滿意。

For Intermodal, as we mentioned, we expect domestic activity to keep gaining modest momentum in the fourth quarter. While for now, our international business looks largely stable. Overall, our volume growth rate in intermodal will reflect favorable year-over-year comparisons. As we've said all year, the pricing environment remains supportive, and we have been encouraged by the agreements we've already reached for 2024. Note that with the slowdown in intermodal storage revenue that we have seen over the course of this year, we are now expecting supplemental revenue, excluding trucking to decline by $325 million for the full year.

對於多式聯運，正如我們所提到的，我們預計第四季度國內活動將繼續保持溫和勢頭。目前，我們的國際業務看起來基本上已經穩定。整體而言，我們的多式聯運業務量成長率將反映出良好的年比情況。正如我們全年所說，定價環境仍然具有支持性，我們對 2024 年已經達成的協議感到鼓舞。請注意，隨著我們今年看到的多式聯運存儲收入放緩，我們現在預計全年補充收入（不包括卡車運輸）將減少3.25 億美元。

Our commitment to efficiency and cost control remains in place as we keep our eye on service performance, not just in the near term, but also as we look ahead to improve market conditions and greater demand for rail capacity. Finally, our estimate of $2.3 billion in capital expenditures remains unchanged along with our strong focus on innovation and growth.

我們對效率和成本控制的承諾仍然存在，因為我們不僅關注近期的服務績效，而且還展望未來市場狀況的改善和對鐵路運力的更大需求。最後，我們對 23 億美元資本支出的估計保持不變，同時我們對創新和成長的強烈關注。

I will close by saying that I'm very proud of what we've accomplished as ONE CSX team as I finished my first year with CSX. When I spoke to all of you last fall, we talked about our belief that CSX could accomplish great things and create so much value by working better together as 1 team to serve our customers. We have made very good progress. And all of us know that there remains so much more we can do. I'm even more enthusiastic about our opportunities than I was last year. We all appreciate your support in our company and we keep -- as we keep moving forward. All right. Thank you.

最後我要說的是，當我在 CSX 工作的第一年結束時，我對我們作為 ONE CSX 團隊所取得的成就感到非常自豪。去年秋天，當我與大家交談時，我們談到了我們的信念：CSX 透過作為一個團隊更好地合作來服務我們的客戶，可以完成偉大的事情並創造如此多的價值。我們已經取得了很好的進展。我們所有人都知道，我們還有很多事情可以做。與去年相比，我對我們的機會更加熱情。我們非常感謝您對我們公司的支持，我們將繼續前進。好的。謝謝。

And Matthew, we're now ready for questions.

馬修，我們現在準備好提問了。

Thank you, Joe. We will now move to our question-and-answer session. In the interest of time and to make sure that everyone on this call has an opportunity. We ask you to please limit yourselves to 1 question. Krista [we're ready to] start the process.

謝謝你，喬。我們現在進入問答環節。為了節省時間並確保參加本次電話會議的每個人都有機會。我們要求您只提出 1 個問題。克里斯塔[我們準備好]開始這個過程。

(Operator Instructions) your first question comes from the line of Chris Wetherbee from Citigroup.

（操作員說明）您的第一個問題來自花旗集團的 Chris Wetherbee。

Maybe, Joe or Mike, I kind of wanted to start with your sense of where you are in terms of resources and services relative to the volume environment. So head count moved up again, maybe give us -- if you can give us a sense of where you think you need to take that or if you're at reasonable staffing levels? And maybe how we think about, like I said, that resource base relative to the volume environment, do you have the ability to do more at these current levels? Are we still in a little bit of the recovery phase?

也許，喬或麥克，我想從您對相對於卷環境的資源和服務的了解開始。因此，員工人數再次增加，也許可以告訴我們—您是否能讓我們了解您認為需要採取哪些措施，或者您的人員配置水準是否合理？也許我們如何思考，就像我說的，相對於卷環境的資源基礎，你是否有能力在當前的水平上做更多的事情？我們還處於恢復階段嗎？

Chris, it's Mike. Look, and then again, I'm going to preface every -- probably most of my answers with I've been here less than a month. But we still have a training pipeline. We still have people that we need to get into position that I spoke of earlier. But overall, I'm comfortable that we have enough to improve the size of train, the amount of trains, the velocity with the people we have.

克里斯，是麥克。聽著，再說一次，我將以我來這兒不到一個月的時間為每一個——可能是我的大部分答案做序言。但我們仍然有培訓管道。我們仍然需要有人進入我之前提到的位置。但總的來說，我很滿意我們有足夠的能力來改善火車的規模、火車的數量以及我們擁有的人員的速度。

But however, there are areas where we're probably getting affected somewhat on the flow of the goods. And so it's constant. We're working not just Kevin and I, but our teams together so they really get the ground floor view of what we can do and not having been here for that long. I haven't really stretch the opportunities out there yet. So I'd say, to answer your question, where we need to be. We have people that are being trained that are going to be positioned. And you remember, we have attrition whether it's retirement or whatever the case.

但是，在某些領域，我們的貨物流通可能會受到一定程度的影響。所以它是恆定的。我們不僅與凱文和我一起工作，而且還與我們的團隊一起工作，以便他們真正了解我們可以做什麼，而不是在這裡待了那麼久。我還沒有真正抓住機會。所以我想說，為了回答你的問題，我們需要去哪裡。我們有正在接受訓練、即將就職的人員。你還記得，無論是退休或其他情況，我們都會有人員流失。

So we're filling that. And with the people we have, we're in good shape, we have to get in better shape. And a lot of that's going to come from self-help and how we utilize the assets.

所以我們正在填補這一點。就我們現有的人員而言，我們的狀況良好，我們必須變得更好。其中很大一部分將來自自助以及我們如何利用資產。

Yes, Craig, is the last thing I'll add is, as Mike mentioned, we're still hiring in a few key locations. That's down to a little more than a handful. And largely, we're in pretty good shape in most other spots. And with the natural attrition we have, we're still hiring to replace some of that because we are still -- our merchandise volume is up this year. So we're still seeing some growth in volume. But we feel pretty good about our ability to manage that. And Mike's really challenged the team and come with a new fresh new set of eyes to look at how we can do some self-help to free up some of our crews to help us even be more efficient.

是的，克雷格，我要補充的最後一件事是，正如麥克提到的，我們仍在幾個關鍵地點進行招募。這已經減少到屈指可數了。總的來說，我們在其他大多數地方都處於良好的狀態。由於我們的自然流失，我們仍在招募來替代其中的一些人員，因為我們今年的商品數量仍在增加。因此，我們仍然看到數量有所增長。但我們對自己的管理能力感到非常滿意。麥克確實為團隊帶來了挑戰，他以全新的眼光來看待我們如何進行一些自助，以釋放我們的一些員工，從而幫助我們提高效率。

Your next question comes from the line of Brian Ossenbeck from JPMorgan.

您的下一個問題來自摩根大通的 Brian Ossenbeck。

Mike welcome back to the industry. Congrats. Just wanted to ask more about the -- on the service side, maybe for Kevin. You're seeing some conversion you mentioned off of areas that have excess truck capacity. So is this stuff that you thought you lost before and was going to come back? Or has the service been so good for so long that people are actually going to convert and stay there? Just trying to get a sense of the stickiness of that? And then, Sean, if you can just give us some comments on the cost per employee for the fourth quarter. It looks like, over time, it's coming down quite a bit. There's always mix and trainees involved. So any color on that would be helpful.

麥克歡迎回到這個行業。恭喜。只是想詢問更多有關服務方面的信息，也許是針對凱文的。您看到卡車運力過剩的地區發生了一些您提到的轉變。那麼，這些東西是不是你之前認為失去了會回來的東西呢？還是服務一直以來都非常好，以至於人們實際上會轉變並留在那裡？只是想感受一下它的黏性嗎？然後，肖恩，您能給我們一些關於第四季度員工人均成本的評論嗎？看起來，隨著​​時間的推移，它已經下降了很多。總是有混合和實習生參與。所以任何顏色都會有幫助。

Yes. I would say on the truck conversion side, we're really, really early into this thing. The good news is customers are willing to start to have those conversations that, quite frankly, we just couldn't have a year ago, given where we were. And so we're building momentum. I expect this to build on itself into next year. The great thing is, I think, as an industry is starting to become aligned in terms of going after growth, going after some of the opportunities that exist out there collectively as an industry, and I think that's very encouraging as well. But it's a mixture. It's a mixture of going after new customers.

是的。我想說，在卡車改裝方面，我們真的非常非常早地涉足這件事。好消息是，客戶願意開始進行這些對話，坦白說，考慮到我們所處的位置，我們一年前根本無法進行這些對話。所以我們正在積蓄動力。我預計這將在明年繼續下去。我認為，最棒的是，一個行業開始在追求成長、追求作為一個行業共同存在的一些機會方面變得一致，我認為這也非常令人鼓舞。但它是一種混合物。這是追求新客戶的混合體。

Clearly, you pointed out the trucking market is not very supportive right now. But even in this market, we're finding customers that with ESG and with other things are wanting to have that discussion. There's still value that we can drive. But I only expect as the trucking market it firms up in the next year and the years ahead, that this will accelerate on itself and see a lot of momentum coming.

顯然，您指出貨運市場目前的支援力度並不大。但即使在這個市場上，我們也發現客戶希望就 ESG 和其他問題進行討論。我們仍然可以推動價值。但我只預計，隨著卡車運輸市場在明年和未來幾年的發展，這一趨勢將自行加速，並看到巨大的動力即將到來。

Brian, on your follow-up question around cost per employee, we did made a lot of progress on the overtime front in the third quarter. That's an area that Mike's been focused on right from the very beginning, trying to figure out ways we can restructure the work and eliminate waste in certain locations. So that's going to help. I will say, though, sequentially, Q3 to Q4, you probably will see still an uptick in cost per employee like we normally do. That's driven by some capital work labor that will go over to OE in the fourth quarter. we also have some seasonal vacation and some accruals that will hit in the fourth quarter. So I would say, sequentially, Q3 to Q4, you'll probably see comp of our employee up a few percent.

Brian，關於您關於員工人均成本的後續問題，我們在第三季的加班方面確實取得了很大進展。這是麥克從一​​開始就關注的一個領域，試圖找出重組工作並消除某些地點浪費的方法。所以這會有幫助。不過，我想說的是，從第三季到第四季度，您可能會看到每位員工的成本仍然在上升，就像我們通常所做的那樣。這是由一些資本工作勞動力推動的，這些勞動力將在第四季度轉移到原始設備製造商。我們還有一些季節性假期和一些應計費用將在第四季度發生。所以我想說，從第三季到第四季度，您可能會看到我們員工的薪資增加了幾個百分點。

Your next question comes from the line of Brandon Oglenski from Barclays.

您的下一個問題來自巴克萊銀行的布蘭登·奧格倫斯基。

And Mike, welcome back as well. And I guess, Mike, can I just ask you, the U.S. roads historically just haven't had a great track record of organic growth, and we know things like coal have been a long-term headwind. But what have you seen in your first month or so that you like to see at the CSX plan or changes you want to make that will help with this idea that CSX can outgrow the market looking ahead?

麥克，也歡迎回來。我想，麥克，我可以問你嗎，美國公路歷史上沒有良好的有機成長記錄，而且我們知道煤炭等東西一直是長期的逆風。但是，在第一個月左右的時間裡，您在 CSX 計劃中看到了哪些您希望看到的內容，或者您​​希望做出哪些改變，以幫助您認識到 CSX 未來的發展能夠超越市場？

Brandon, thank you. Well, I mentioned in my remarks the visibility of information. And it just -- it creates this connection where people see we have people that manage terminals that manage the dispatch on the road. We have people that manage people from a crew management perspective, we manage -- look we do all these things individually and to see it all together. And then again, back to being understanding of what it is you can do, whether it's from a capacity or a service perspective, but then cutting in with Kevin's team, we can get sticky because we can really understand all the work we're doing is really to get that business is keep that business and I see that here. The opportunity here is, look, the railway I came from, you got the business, you went 1,200, 1,500 miles, and then there was more business here, it's everywhere. And it's not -- it's competitive, but there's lots of it. And Kevin, we're not talking so much about the truck.

布蘭登，謝謝你。嗯，我在發言中提到了資訊的可見性。它只是——它創建了這種聯繫，人們可以看到我們有人管理終端，管理路上的調度。我們有人從船員管理的角度來管理人員，我們管理——看起來我們單獨做所有這些事情，然後一起看。話又說回來，回到理解你可以做什麼，無論是從容量還是服務的角度來看，但是然後與凱文的團隊切入，我們可以變得粘性，因為我們可以真正理解我們正在做的所有工作實際上，獲得業務就是保持業務，我在這裡看到了這一點。這裡的機會是，看，我來自的鐵路，你得到了生意，你走了 1,200、1,500 英里，然後這裡有更多的生意，它無處不在。它不是——它是有競爭力的，但有很多。凱文，我們不是在談論卡車。

Obviously, we're going to grow with the market and what it gives us. But I just -- I think the opportunity here when we connect our people. We are everywhere. We service what is it, 2/3 of the U.S. market. And that's just the opportunity in itself. So I don't know if I'm answering your question again, I've been here a month, but I see that, that's really what our goal is. We want to grow properly. We want it to be ratable. We want to make sure that we're in a position for it. And we're going to make sure that we rid ourselves of waste. So we're not getting rid of the assets that we need when it does come.

顯然，我們將隨著市場及其為我們帶來的東西而成長。但我只是——我認為當我們將我們的人民聯繫起來時，這裡就有機會。我們無所不在。我們服務的是美國 2/3 的市場。這本身就是機會。所以我不知道我是否再次回答你的問題，我已經在這裡一個月了，但我明白，這確實是我們的目標。我們想要正常成長。我們希望它是可評級的。我們希望確保我們有能力做到這一點。我們將確保消除浪費。因此，當我們需要的資產真正到來時，我們不會將其丟棄。

Your next question comes from the line of Jonathan Chappell from Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Jonathan Chappell。

Mike, I kind of want to build on that and you kind of brought up your former role as well. You transitioned there from a PSR railroad to a growth railroad. And maybe that didn't go smoothly as you would have hoped. So you're not joining a [fixer] upper here. CSX's service metrics have improved vastly over the last year or two and now you're pivoting the growth. So what are some of the lessons that you've learned from that transition at the last role and some of the dangers to avoid? And how you manage capacity as you're trying to fill the network without clogging up the network and causing service issues.

麥克，我想以此為基礎，你也提到了你以前的角色。你們在那裡從 PSR 鐵路轉變為成長鐵路。也許這並不像你希望的那樣順利。所以你不會加入這裡的[修復者]上部。 CSX 的服務指標在過去一兩年裡有了很大改善，現在您正在推動成長。那麼，您從上一個角色的轉變中學到了哪些教訓以及需要避免的一些危險？以及在嘗試填充網路而不堵塞網路並導致服務問題時如何管理容量。

Thanks, Jonathan, 1 of the wounds just opened up. Look, it's no different. We have to be really aligned. First of all, we have to understand what our assets and our people can do for us and expand on that, obviously. But I just don't see the market, the commodities we move being the same as the growth is where it came from. And so Again, I have a long way to go to understand the market, and I'm working extremely hard with Kevin to understand it. But look, the principles are the same.

謝謝，喬納森，其中一處傷口剛裂開。你看，沒什麼不同。我們必須真正保持一致。首先，我們必須了解我們的資產和員工可以為我們做什麼，並顯然對此進行擴展。但我只是沒有看到市場，我們移動的商品與成長的來源是一樣的。因此，我再說一次，要了解市場，我還有很長的路要走，我正在與凱文一起非常努力地了解它。但看，原理是一樣的。

We sell a service, we deliver a service. And how fast we recover from any service disruptions is key to keeping the customer knowing that our goal is to be the reliable provider for them. So I don't see any difference. And you can go back and take a look at the hockey stick recovery and all that great history, but I'm looking forward. And I don't think anything changes in my view as to how we approach this. we know what we can do and we continue to really stay close. And again, the teams being together from the ground floor up. there shouldn't be surprises. And if there are, we're going to build our resiliency so that we can attack it again and again, be reliable for the customer. So I don't see that big of a difference in terms of the model that we have here or wherever we have -- what we had -- what I had before. It's sell the service, deliver the service. And Kevin is really working hard with his team on ratability. So there shouldn't be surprises.

我們出售服務，我們提供服務。我們從服務中斷中恢復的速度是讓客戶知道我們的目標是成為他們可靠的提供者的關鍵。所以我看不出有什麼差別。你可以回去看看曲棍球棒的恢復和所有偉大的歷史，但我很期待。我認為我對如何處理這個問題的看法沒有任何改變。我們知道我們能做什麼，我們將繼續保持密切聯繫。再說一次，團隊從底層開始就在一起。應該不會有什麼意外。如果有的話，我們將建立我們的彈性，以便我們可以一次又一次地攻擊它，對客戶來說是可靠的。因此，我認為我們在這裡或任何地方擁有的模型——我們擁有的模型——我以前擁有的模型沒有那麼大的差異。它出售服務，提供服務。凱文（Kevin）正在與他的團隊一起努力提高評分率。所以不應該有什麼意外。

Your next question comes from the line of Scott Group from Wolfe Research.

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

Maybe, Kevin, just any color on how much of an uptick in the coal yield we should expect in Q4 and into Q1? And then maybe just Sean, just help us think about some of the puts and takes for Q4. It just sounds like better volume, less of a fuel headwind, maybe some net uplift, but maybe some continued cost pressures. So you put it all together, does -- you think operating ratio gets better or worse from Q3? Any directional color you want to give us?

凱文，也許我們可以預期第四季和第一季煤炭產量會增加多少？然後也許肖恩（Sean）可以幫助我們思考第四季的一些調整和調整。聽起來像是銷售量更好，燃料逆風減少，也許有一些淨提升，但也可能有一些持續的成本壓力。所以你把所有這些放在一起，你認為第三季的營運比率會變得更好還是更差？您想給我們任何方向性的顏色嗎？

Yes. Scott, there can be a lot of mix issues within our coal business. When you think about Southern utilities, longer length of haul, higher RPU versus Northern Utilities export coal, a very, very good business. It can be shorter haul, so it can sometimes be a little bit lower RPU as well. But on average given some of the benchmark strength that we've seen, I would look for something in the low single digits, maybe mid-single digits depending on mix.

是的。斯科特，我們的煤炭業務可能存在許多混合問題。當你想到南方公用事業公司時，與北方公用事業公司出口煤炭相比，運輸距離更長、RPU 更高，這是一項非常非常好的業務。它可以是較短的距離，因此有時 RPU 也可以稍微低一些。但平均而言，考慮到我們所看到的一些基準強度，我會尋找低個位數的東西，也許是中個位數的東西，這取決於組合。

And Scott, on your question around Q4, I think you did a good job of kind of summarizing the factors. We're off to a good start in terms of the volume, and that's obviously 1 of the most important factors in terms of not only seeing OR stay stable to improve, but also, more importantly, growing our earnings. As you mentioned, fuel should be a little bit less of a negative here in Q4 than it was in Q3, we'll see what the direction of fuel prices is, but we had $30 million a lag in the third quarter that we don't expect to repeat and then in terms of the cost seasonally, we typically do see higher costs in Q4 than Q3.

史考特，關於你關於第四季的問題，我認為你在總結因素方面做得很好。就數量而言，我們有了一個良好的開端，這顯然是最重要的因素之一，不僅可以看到 OR 保持穩定以提高，而且更重要的是，可以增加我們的收入。正如您所提到的，第四季度的燃油負面影響應該比第三季度要小一些，我們將看看燃油價格的走向是什麼，但第三季度我們有3000 萬美元的滯後，我們沒有這樣做。預計不會重複，然後就季節性成本而言，我們通常確實會看到第四季度的成本高於第三季度。

So if you were to look over the last 5 years, each and every 1 of those years, the OR has been worse in Q4 than Q3 and everything except for 2020, the COVID year operating income has been down sequentially from the third quarter. Now we're off to a good start, like I said, and we've got our eyes fixed on places that we can eliminate waste and control costs. So I think we've got a good shot of bucking that seasonal trend and doing a little bit better than that.

因此，如果你回顧過去 5 年，每一年，第四季的 OR 都比第三季更糟糕，除了 2020 年以外的所有年份，COVID 年營業收入都比第三季連續下降。現在，正如我所說，我們有了一個良好的開端，並且我們已經將目光集中在可以消除浪費和控製成本的地方。因此，我認為我們有機會扭轉季節性趨勢，並做得更好一點。

Your next question comes from the line of Justin Long from Stephens.

你的下一個問題來自史蒂芬斯的賈斯汀朗。

Kevin, it sounds like you've recently had some early success with market share gains, both truck and rail. But could you expand a little bit more on the commodity groups where you're seeing the most meaningful tailwinds on that front? And as we move into 2024, where you see the most opportunity to keep that momentum going?

凱文，聽起來您最近在卡車和鐵路市場份額方面取得了一些早期成功。但您能否進一步擴展一下您在這方面看到的最有意義的推動因素的商品類別？當我們進入 2024 年時，您認為哪裡最有機會保持這種勢頭？

Yes. I think it's really within our merchandise portfolio, and it's broad-based. There's different initiatives across the board from our metals side of the business, which I highlighted, Automotive has been a good strength for us. And it's all on the back of service that's differentiated in the market, and we've really been able to capitalize on that with the customer. The customers are looking for reliable service and I think we've been stand out in the market here year-to-date and our team has been selling it, and it's been incredibly helpful on that side.

是的。我認為它確實屬於我們的商品組合，而且基礎廣泛。我們的金屬業務方面有全面不同的舉措，我強調了這一點，汽車業務對我們來說是一個很好的優勢。這一切都取決於市場上差異化的服務，我們確實能夠與客戶一起利用這一點。客戶正在尋找可靠的服務，我認為我們今年迄今為止在市場上脫穎而出，我們的團隊一直在銷售它，這在這方面非常有幫助。

I won't say we're going to start to see some benefits of the industrial development side, more in probably the '25, '26, but you'll start to see that layer in late '24 and got a lot of momentum there. And again, it goes back to the service product that we've been able to deliver and getting the confidence as these industries build new plants that they're locating on our railroad.

我不會說我們將開始看到工業發展方面的一些好處，更多可能是在 25 年、26 年，但你會在 24 世紀末開始看到這一層，並獲得了很大的動力。再說一次，這又回到了我們能夠提供的服務產品，並在這些行業在我們的鐵路上建造新工廠時獲得了信心。

So I actually just sat down with Christina this afternoon, and we're going through all the industrial projects that have been taking place throughout the U.S. And it's interesting, you look at a map holistically throughout the U.S., and it's almost focused in the East. And that's our railroad. That's where we operate in. That's where our team is really going after it today, and I'm very, very optimistic on what's happening on that side. So A lot of opportunities they're mixed across different industries. And every industry is created a little bit different, but we are being able to lean into those conversations quite different environment than what was occurring last year, but very optimistic here.

所以我今天下午剛剛和克里斯蒂娜坐下來，我們正在討論美國各地正在發生的所有工業項目，很有趣，你從整體上看整個美國的地圖，它幾乎集中在東部。這就是我們的鐵路。這就是我們開展業務的地方。這就是我們團隊今天真正追求的目標，我對這方面發生的事情非常非常樂觀。因此，他們有很多機會混合在不同的行業中。每個行業的創建都略有不同，但我們能夠在與去年完全不同的環境中進行對話，但這裡非常樂觀。

Your next question comes from the line of Amit Mehta from Deutsche Bank.

您的下一個問題來自德意志銀行的 Amit Mehta。

Sean, I wanted to -- so just a follow-up on that question around 3Q to 4Q, but maybe ask it as it relates to 2024. I mean, obviously, we're -- we're moving from a very inflationary environment to a less inflationary environment. You've got a little bit of labor, another uptick in labor in the middle of next year. But then I also look at like PS&O that 19% of revenue several years ago was as low as 14%, 15% of revenue. But there's obviously some opportunity to get more leverage the cost structure, especially on that big PS&O item. So I don't know if you can kind of help us enter your brain a little bit and think what is the cost structure look like in '24 because obviously, we're still in an inflationary environment, but you still got maybe these tunky idiosyncratic opportunities to kind of leverage some parts of the cost structure.

肖恩，我想——所以只是在第三季度到第四季度對這個問題進行後續跟進，但也許會問它，因為它與2024 年有關。我的意思是，顯然，我們正在——我們正在擺脫一個非常通貨膨脹的環境通膨較少的環境。你有一點勞動力，明年年中勞動力會再增加。但後來我也看到像PS&O，幾年前19%的收入已經低至14%、15%的收入。但顯然有一些機會可以更好地利用成本結構，尤其是在大型 PS&O 專案上。所以我不知道你是否可以幫助我們稍微進入你的大腦，想想24年的成本結構是什麼樣的，因為顯然，我們仍然處於通貨膨脹的環境中，但你仍然可能有這些笨拙的東西利用成本結構某些部分的特殊機會。

Yes, Amit, obviously, we're still in the planning phases for 2024. So I don't want to get too far ahead of ourselves here. But you know the story on labor and just to make sure everybody understands and it's level set, we're going to have a 4.5% wage increase midyear next year. That's the last year of the contract with the union employees. That's a step up from the 4% increase that we had midyear this year.

是的，阿米特，顯然，我們仍處於 2024 年的規劃階段。所以我不想在這裡走得太遠。但你知道關於勞工的故事，只是為了確保每個人都理解並且設定了水平，我們明年年中的工資將增加 4.5%。那是與工會員工合約的最後一年。這比我們今年年中 4% 的增幅有所提高。

In terms of PS&O, at least on the inflationary side, it's early, but I think it's fair to say that we'll start to see some normalization of the inflationary pressures from this year. So we had mid-single-digit inflation this year. It will probably be a little bit less than that. But certainly higher than the 5-year average as some of those outside service contracts are based on lagging indicators or labor indices that are going to reset.

就 PS&O 而言，至少在通貨膨脹方面，現在還為時過早，但我認為可以公平地說，我們將從今年開始看到通膨壓力正常化。因此，今年我們的通膨率為中個位數。可能會比這個少一點。但肯定高於 5 年平均水平，因為其中一些外部服務合約是基於滯後指標或即將重置的勞動力指數。

So, suffice it to say, I do think we've got fewer headwinds overall going into next year than we did going into this year, and that sets us up well. We've got cost inefficiency opportunities, but I think more importantly, Kevin and the team are building a really nice pipeline of growth that really stems from the way that we've been serving the customer over the last year and that sustained service level as well as some of the initiatives the team has been working on. That's really what's going to drive growth as we get into next year and beyond.

所以，我只想說，我確實認為明年的整體阻力比今年少，這讓我們做好了準備。我們有成本效率低下的機會，但我認為更重要的是，凱文和團隊正在建立一個非常好的成長管道，這實際上源於我們去年為客戶提供服務的方式以及持續的服務水平以及團隊一直正在努力的一些舉措。這確實是我們進入明年及以後推動成長的因素。

Your next question comes from the line of Tom Wadewitz from UBS.

您的下一個問題來自瑞銀集團 (UBS) 的湯姆·瓦德維茨 (Tom Wadewitz)。

Yes. I wanted to see -- I guess it's kind of staying on the same topic, Sean. But if you think about 2024, and volume sensitivity in terms of how the OR performed, do you think that there is a chance that you could see improvement in the OR if you don't see volume growth? And perhaps related to that, from a pricing perspective, I think sometimes people think that there is a time delay on some of the pricing with multiyear contracts, and there might be catch up on pricing related to inflation. So I guess it's kind of 2 things within that, just OR sensitivity to volume and also potential catch up on pricing.

是的。我想看看——我想這有點停留在同一個主題上，肖恩。但如果您考慮到 2024 年，以及 OR 表現的數量敏感性，您是否認為如果沒有看到數量增長，您是否有機會看到 OR 的改進？也許與此相關，從定價的角度來看，我認為有時人們認為多年期合約的某些定價存在時間延遲，並且與通貨膨脹相關的定價可能會趕上。所以我想這裡面有兩件事，要嘛是對數量的敏感度，要嘛是定價方面的潛在追趕。

Yes, Tom. So I mean, our plan is going to be to grow volume ahead of the economy. That's what we're going to shoot for and that's what we're going to plan for. So I think if we were to have no growth next year, I think it would be tough to improve the OR with the continued inflationary pressures that we're seeing. You're cycling. We had that insurance settlement earlier in the year. So there's a few things there. Depreciation will continue to go up, things like that. So we need growth. That's what the model requires, and that's what we're building into the plan. Kevin, I don't know if you want to address the price piece?

是的，湯姆。所以我的意思是，我們的計劃將是在經濟成長之前增加銷售量。這就是我們要努力的目標，也是我們要規劃的目標。因此，我認為，如果我們明年沒有成長，我認為在我們看到的持續通膨壓力下，很難改善 OR。你在騎自行車。我們在今年稍早就達成了保險協議。所以有一些事情。折舊將繼續上升，諸如此類。所以我們需要成長。這就是模型所需要的，也是我們正在計劃中建構的。凱文，我不知道你是否想談價格問題？

Yes. On the pricing, roughly 60% of our business reprices every year, and 30% of that is kind of carryover of what we've already touched this year. So we'll touch the other half going into next year. And the environment is still supportive. And it certainly helps when the service product is vastly improved, and we'll continue to price to our service levels and those are up. And so it's a conversation that customers expect. Our labor inflation is very visible to the world, and we have those discussions. They don't -- they're not unexpected from the customer.

是的。在定價方面，我們每年大約 60% 的業務都會重新定價，其中 30% 是我們今年已經觸及的內容的結轉。所以我們將在明年討論另一半。而且環境仍然是支援的。當服務產品得到極大改進時，這肯定會有所幫助，我們將繼續根據我們的服務水準定價，並且這些水準會不斷提高。因此，這是客戶所期望的對話。我們的勞動力通膨對世界來說非常明顯，我們也進行了這些討論。他們不會——他們對客戶來說並不出乎意料。

Your next question comes from the line of Allison Poliniak from Wells Fargo.

您的下一個問題來自富國銀行的艾莉森·波利尼亞克 (Allison Poliniak)。

Just want to go back to the domestic intermodal side. You're starting to see some conversion from truck here. When you're talking to customers, what's really starting -- holding them back from converting at this point? Is there something in the service product that you have to evolve? Or is it just simply building that trust with the reliability that you guys have had over the past few months? Just any thoughts there?

只想回到國內聯運那邊。您開始在這裡看到卡車的一些轉變。當您與客戶交談時，真正開始的是什麼—阻礙他們在此時進行轉換？服務產品中有什麼東西是你必須改進的嗎？或者只是簡單地透過過去幾個月你們所擁有的可靠性來建立這種信任？只是有什麼想法嗎？

Yes. To reflect on the pandemic and the domestic intermodal in our intermodal franchise performed very, very well. It really was outside the industry in a lot of ways. What minimized our growth opportunity was really the chassis and some of the equipment limitations that existed. So Obviously, we're in a very, very different world today. And so those limitations don't exist on a year-over-year basis and we're really seeing the team able to capitalize on that and the strength of our service product is really coming through when you see -- what we talked about in the chart that we mentioned previously is I think all those things are coming together, service leading in the East and then allowing our customers to grow with us with our service product.

是的。回顧這場流行病，我們的多式聯運特許經營中的國內多式聯運表現非常非常好。它在很多方面確實處於行業之外。真正使我們的成長機會最小化的是底盤和一些存在的設備限制。顯然，我們今天處於一個非常非常不同的世界。因此，這些限制逐年不存在，我們確實看到團隊能夠利用這一點，並且當您看到我們在我們之前提到的圖表是我認為所有這些事情都匯集在一起，服務在東方領先，然後讓我們的客戶透過我們的服務產品與我們一起成長。

Your next question comes from the line of Ken Hoexter from Bank of America.

您的下一個問題來自美國銀行的 Ken Hoexter。

Mike, welcome back to the sector and happy to have you here. Joe or Mike, I guess, just operations seem pretty solid, right, in terms of how well you're operating? And obviously, you still want to improve? And maybe, Mike, just talk about what -- I know you've been there for a month, but what do you see is -- I don't know if it's low-hanging fruit or opportunities on operations. It sounds like Sean's saying or Kevin saying you need the volumes in order to get that operating leverage, but are there things you can do on the cost side from what you see that can aid that leverage opportunity?

麥克，歡迎回到這個領域，很高興你能來到這裡。我想喬或麥克，只是營運看起來相當可靠，對吧，就你們的營運情況而言？顯然，你還想進步嗎？也許，麥克，只是談談——我知道你已經在那裡待了一個月，但你看到的是——我不知道這是唾手可得的成果還是營運機會。這聽起來就像肖恩或凱文說的那樣，你需要數量才能獲得營運槓桿，但從你所看到的情況來看，你可以在成本方面做一些事情來幫助利用槓桿機會嗎？

Yes. Ken, thanks. Look, visibility of waste and getting it and collating that information so that I can -- what I do is I try to teach and learn, learn and teach. That's really what it's about. So we have a good group of people. Many of them younger haven't been experienced in the positions they're in. So that's really where I've been focusing, first of all, we get a temperature read, but really start to share with them how to go about getting at that waste. And it's not easy in a network like this. And it's something that we will do as a team, but I'm not big on the next day looking at a report.

是的。肯，謝謝。看，浪費的可見性，獲取它並整理這些信息，這樣我就可以——我所做的就是嘗試教和學，學和教。這就是它的真正意義。所以我們有一群很好的人。他們中的許多年輕人沒有在他們所處的職位上有經驗。所以這確實是我一直關注的地方，首先，我們得到了溫度讀數，但真正開始與他們分享如何去了解那種浪費。在這樣的網路中這並不容易。這是我們作為一個團隊要做的事情，但我不太願意第二天看報告。

I want it visible right away so they see their actions. And so I see great opportunity in that. They're hungry to do it. They're more than motivated, and it's up to me to teach them and help them get there. And I have all the confidence in the world that's where we'll get. But we'll see just through the waste exercise at first and then it starts to allow you to get into understanding how to divide the network to Kevin's point, to keep and even get better service and get the businesses out there.

我希望它立即可見，以便他們看到他們的行為。所以我看到了巨大的機會。他們渴望這樣做。他們非常有動力，我有責任教導他們並幫助他們實現這一目標。我對我們將要實現的世界充滿信心。但我們首先會看到浪費練習，然後它開始讓您了解如何按照凱文的觀點劃分網絡，以保持甚至獲得更好的服務，並使業務發展起來。

Yes, Ken, I just want to add a little thing. I think the timing of Mike joining us is perfect because we've had a year of taking advantage of the operating model that we have, engaging with our employees do a lot of things around culture and ONE CSX. We made tremendous progress, especially on the service metrics as you've seen, and we have close to industry-leading metrics across the board on the operating side.

是的，肯，我只是想補充一點。我認為 Mike 加入我們的時機非常完美，因為我們已經花了一年的時間利用現有的營運模式，與員工互動，圍繞文化和 ONE CSX 做了很多事情。我們取得了巨大的進步，特別是在服務指標方面，正如您所看到的，並且我們在營運方面全面接近行業領先的指標。

Now we have Mike coming in with his experience, best set of eyes and all the opportunities that can now allow us to step back and say, okay, we've come this far, great work, proud of the team's work. Now here's the opportunity that we have to advance even further. And so the timing is perfect, I think, for us, works out very nicely. Our team is excited and motivated. You've seen now, as Kevin has highlighted many times in his comments tonight, regarding the customers have acknowledged and they acknowledge that with me all the time, the service levels that we've sustained almost reliably now and repeatedly for 12 months and now we have the opportunity to get more efficient and to get even better.

現在麥克帶著他的經驗、最好的眼光和所有的機會進來，現在可以讓我們退後一步說，好吧，我們已經走到了這一步，幹得很棒，為團隊的工作感到自豪。現在這是我們必須進一步前進的機會。所以我認為這個時機非常完美，對我們來說效果非常好。我們的團隊非常興奮和積極。正如 Kevin 在今晚的評論中多次強調的那樣，您現在已經看到，客戶已經承認，並且他們承認一直以來與我在一起，我們現在幾乎可靠地維持了 12 個月以來一直重複的服務水平我們有機會提高效率、做得更好。

And Mike has come in with a great attitude and excited about how we can take it to the next level and still focus, of course, on improving our service metrics but also teaching our team, which is a relatively young team to understand what it takes now to take the next step forward. So we're excited about it. I'm excited about it. And I think we can continue to outpace the industry when it comes to progress on our efficiency metrics.

麥克以一種很好的態度來到這裡，他對我們如何將其提升到一個新的水平感到興奮，當然，他仍然專注於提高我們的服務指標，同時也教導我們的團隊，這是一個相對年輕的團隊，了解它需要什麼現在要向前邁出下一步。所以我們對此感到興奮。我對此感到很興奮。我認為，在效率指標方面，我們可以繼續超越產業。

Your next question comes from the line of Bascome Majors from Susquehanna.

你的下一個問題來自薩斯奎哈納的巴斯科姆梅傑斯隊。

To follow up on that earlier question, can you roll that out a little bit further not just on the service side, but Mike, your role from -- in the mandate you've been giving to focus on culture. Sales, the integration of Kevin's department with yours, what would we see different from CSX over the next 3 to 5 years versus what we've seen over the last 3 to 5.

為了跟進先前的問題，您能否進一步推出這一點，不僅在服務方面，而且邁克，您的角色 - 在您一直致力於關注文化的任務中。銷售，Kevin 的部門與你的部門的整合，我們在未來 3 到 5 年中看到的 CSX 與過去 3 到 5 年的情況有何不同。

That's a tough 1 Bascome. Still -- I'm still out there trying to learn. And that's important to me because I don't want to block anybody or make them feel they can't come forward with an idea. That's #1. But going forward, I want to share the experience I have so that they're incorporating that into the things they do today. And to me, we'll see improvements in all our metrics.

這是一個艱難的 1 Bascome。儘管如此——我仍然在努力學習。這對我來說很重要，因為我不想阻止任何人或讓他們覺得他們無法提出想法。那是#1。但展望未來，我想分享我的經驗，以便他們將其融入他們今天所做的事情中。對我來說，我們將看到所有指標的改進。

A bigger focus on -- when I say velocity, I'm talking both trains and cars but fluidity and we run a pretty condensed network here. Everything is really close. We don't have, in many cases, a lot of time to recover. So it's the plan we put into effect and the discipline about executing it. And so what I'm trying to share with them is the availability of data and how to use it. It hasn't -- I don't see that they've had enough time. They've gone through a pretty tough period here over the last couple of years. They've rebounded extremely nicely. And to Joe's point, this is to get to the next level so where they're self-sufficient. And I know they can be, they know they can be, but I'm here to show them that way. And maybe, Kevin, if you have something to add?

更重要的是——當我說速度時，我指的是火車和汽車，但流動性，我們在這裡運行一個非常緊湊的網路。一切都非常接近。在很多情況下，我們沒有太多的時間來恢復。所以這是我們實施的計劃和執行它的紀律。因此，我試圖與他們分享的是數據的可用性以及如何使用數據。我認為他們沒有足夠的時間。在過去的幾年裡，他們在這裡經歷了一段相當艱難的時期。他們的反彈非常好。對喬來說，這是為了達到一個新的水平，以便他們能夠自給自足。我知道他們可以，他們也知道他們可以，但我來這裡是為了向他們展示這一點。也許，凱文，你有什麼要補充的嗎？

Yes. I would just -- I would highlight that the team's -- Mike's team and my team, they coordinate daily. They're speaking better than they ever have to each other. It's important from a sales and marketing perspective. You talked about can we handle a surge in volume demand? Well, it's up to us to communicate that real time. So the team can work -- make sure we're prepared for that volume, communicate with the customer and make sure it's ratable and that we have the people in place to handle it. And I think a lot of the discussions we're having right now are around that.

是的。我只是——我想強調的是，麥克的團隊和我的團隊，他們每天都在協調。他們之間的交談比以往任何時候都好。從銷售和行銷的角度來看，這很重要。您談到我們能否應付數量需求的激增？嗯，這取決於我們是否能夠即時溝通。這樣團隊就可以工作——確保我們為該數量做好準備，與客戶溝通並確保它是可評估的，並且我們有適當的人員來處理它。我認為我們現在正在進行的許多討論都是圍繞著這個問題的。

And it's -- I don't think it's rocket science to figure out where things could come back very, very quickly. And we're having those discussions around creating resiliency in this network. And we're going to get together in a couple of weeks, our teams again go through it market by market. What do we see for next year? What do we see over the next 3 years? And how are we going to prepare for that? And those conversations are better than they ever have been.

我不認為弄清楚事情可以非常非常快地恢復到什麼程度是多麼複雜的事情。我們正在圍繞如何在該網路中創建彈性進行討論。我們將在幾週後聚在一起，我們的團隊將再次逐一市場地進行研究。明年我們會看到什麼？未來三年我們會看到什麼？我們將如何為此做好準備？這些對話比以往任何時候都更好。

Yes. Yes. And I'll just finish it up Bascome like I've been, like I said, pretty much -- well, not pretty much everywhere, but a lot of locations, and I really focus on bringing everybody that has a role in servicing the customer. I was up in Baltimore Curtis Bay. I had everybody from facilities to Kevin and his marketing team to the people that run the plant to our engineering, mechanical, everybody has a role to play when they see their actions actually doing it together. They become more than customer advocates. They know and can respond to the customer much faster. Because they know exactly -- they know exactly what they can offer. And so going forward, this is not operations and marketing. No, this is CSX. This is how we approach this. This is how we build the business and keep it and drive it even better for the customer. That's what I see in 3 to 5 years.

是的。是的。我會像以前一樣完成巴斯科姆的工作，就像我說的，幾乎- 嗯，不是幾乎所有地方，而是很多地方，我真的專注於讓每個在服務中發揮作用的人都參與進來。顧客。我當時在巴爾的摩柯蒂斯灣。我有每個人，從設施到凱文和他的行銷團隊，再到工廠的營運人員，再到我們的工程、機械，當他們看到自己的行動實際上在一起時，每個人都可以發揮作用。他們不僅僅是客戶的擁護者。他們了解並能夠更快地回應客戶。因為他們確切地知道——他們確切地知道自己能提供什麼。因此，展望未來，這不再是營運和行銷。不，這是CSX。這就是我們的處理方式。這就是我們建立、維持業務並為客戶提供更好業務的方式。這就是我在 3 到 5 年內看到的情況。

You guys can't see it, but Mike has the shirt on, it's ONE CSX. That's what we're talking about here. And that's the vision that our teams are seamless enough that people see CSX as 1 entity, not a bunch of different functions and silos all focused on, of course, safety first of our employees and the communities we live in and serve. But ultimately, the service we provide our customers, which leads to the growth potential that we've all talked about. And doesn't take a rocket scientist to figure out in this business what incremental margins come with growth in this business.

你們看不到，但麥克穿著襯衫，這是 ONE CSX。這就是我們在這裡討論的內容。我們的願景是，我們的團隊足夠無縫，人們將CSX 視為一個實體，而不是一堆不同的職能和孤島，當然，所有這些都專注於我們員工以及我們居住和服務的社區的安全第一。但最終，我們為客戶提供的服務帶來了我們都談到的成長潛力。不需要火箭科學家就能弄清楚這項業務的成長會帶來什麼樣的增量利潤。

And -- but from my year-plus experience here now, we will realize the most potential when we have operations and marketing sales as described by both Kevin and Mike as 1 team, looking at every opportunity together with a can do, let's find a way to make sure it's profitable, let's find a way to be able to serve the customer and do it efficiently and that's the spirit of ONE CSX, focus on how -- on teaching and training our employees to be part of that team and to get excited by that opportunity and do it in a way that we're proud of how we work together in service of the customer. That's ONE CSX is what everyone is talking about.

而且- 但從我現在在這裡一年多的經驗來看，當我們像凱文和邁克所描述的那樣作為一個團隊進行運營和營銷銷售時，我們將實現最大的潛力，一起尋找每一個機會和可以做的事情，讓我們找到一個確保盈利的方法，讓我們找到一種能夠有效地服務客戶的方法，這就是 ONE CSX 的精神，專注於如何教導和培訓我們的員工成為該團隊的一部分並獲得我們對這個機會感到興奮，並以我們為客戶服務的方式感到自豪。這就是每個人都在談論的 ONE CSX。

Your next question comes from the line of Jason Siedl from TD Cowen.

您的下一個問題來自 TD Cowen 的 Jason Siedl。

Thank you, operator. Joe and team, good afternoon, Mike, welcome back. It must be pretty exciting coming -- hitting the ground running in a railroad showing improving service numbers. So we look forward to seeing what you can do in 2024. My question actually is going to be to Kevin. Kevin, you had some comments you said that you had many, many reasons to be optimistic. So I noted the 2 many's there. You sort of touched on domestic plastics improving I'd like to get some meat on the bone there with those commentaries. And then you talked a little bit about some industrial development project with Christina. Can you give us some numbers on what you're seeing now in terms of total projects and maybe what you had a year ago and maybe pre-pandemic?

謝謝你，接線生。喬和團隊，下午好，麥克，歡迎回來。這一定是非常令人興奮的——在鐵路上投入運行，顯示出服務數量的改善。因此，我們期待看到您在 2024 年能做些什麼。我的問題實際上是問凱文的。凱文，你有一些評論說你有很多很多的理由保持樂觀。所以我注意到那裡有兩個。你有點談到了國產塑膠的改進，我想透過這些評論得到一些實質內容。然後你和克里斯蒂娜談了一些工業發展項目。您能否給我們一些關於您現在看到的項目總數以及一年前或大流行前的數字？

Yes. We're exposed to a lot of cyclical businesses. And we're talking about -- and everybody is talking about a Looming recession, well, in my opinion, a lot of the businesses we touch have been in recession for the last year and many of them are at cyclical lows. And maybe we went beyond that with the destocking that occurred. So when we talk about some of the plastics and we talk about forest products in some of these other markets, there's significant destocking headwinds that we've been dealing with for the past 3, 4 quarters. And so just based on that, obviously, the comparisons get much easier from here as we look into 2024.

是的。我們面臨很多週期性業務。我們正在談論——每個人都在談論迫在眉睫的衰退，嗯，在我看來，我們接觸的許多企業去年都陷入了衰退，其中許多企業處於週期性低點。也許我們通過去庫存超越了這一點。因此，當我們談論某些塑膠以及其他一些市場的林產品時，我們在過去的三、四個季度中一直面臨著巨大的去庫存阻力。因此，基於此，顯然，當我們展望 2024 年時，比較會變得更加容易。

And hopefully, in a world where demand is relatively stable, that would imply, hopefully, some growth beyond just having the economy snap back a bit here. So that gives me a little bit of optimism. Obviously, if you turn the TV on right now, it can make you a little bit hesitant to be bullish. But the things that we can control, as I mentioned before, that pipeline has never been bigger I don't think -- I've only been here for about 6, 7 years, but talking to my colleagues that have been around a lot longer, the things that we're doing from an industrial development side, the things we're doing, working with other Class 1s -- is things -- yes, the Western Class 1s going after the Mexico business, we can participate in that.

希望在一個需求相對穩定的世界裡，這將意味著，除了經濟略有回升之外，還有一些成長。所以這讓我有點樂觀。顯然，如果你現在打開電視，可能會讓你對看漲感到有點猶豫。但我們可以控制的事情，正如我之前提到的，我認為這條管道從未如此龐大——我只在這裡工作了大約六七年，但與我經常接觸的同事交談更長，我們從工業發展方面正在做的事情，我們正在做的事情，與其他1 級合作- 是的，西方1 級正在追求墨西哥業務，我們可以參與其中。

We're really happy to work with them. There's a lot of things, a lot of momentum just around us all working together to create opportunities for ourselves where I think -- for decades, we've been pushing volume, quite frankly, off the railroad on the truck. And now we're all going to work collectively to really change that trend. And that's exciting. I forget the second part of that question.

我們真的很高興與他們合作。我們周圍有很多事情、很多動力，大家共同努力為自己創造機會，我認為，幾十年來，坦白說，我們一直在推動鐵路卡車運量。現在我們將共同努力，真正改變這種趨勢。這很令人興奮。我忘記了這個問題的第二部分。

The industrial projects, we did highlight a number of those. I think we'll pull a fighter we'll come back probably at the end of -- as we look into next year and kind of put more numbers around that, but the activity levels are just tremendous. And then we haven't seen any slowdown. And like I said before, the biggest challenge is to create the inventory of readily available industrial sites that are shovel-ready tomorrow, basically, as these companies, as we're seeing more onshoring, we're seeing more industrial development, they want to go quickly and we've got to be ready to serve their needs. So that's the focus of this team is how it can create more opportunities throughout our network to react to where they need to go and create a service so they can reach their customers. But we'll put some more numbers around that as we develop it, but the team has done a great job, and we've got a lot of momentum there.

在工業項目方面，我們確實強調了其中的一些。我認為我們會拉出一架戰鬥機，我們可能會在年底回來——當我們展望明年並在這方面提供更多數字時，但活動水平非常巨大。然後我們沒有看到任何放緩。正如我之前所說，最大的挑戰是創建現成的工業場地庫存，以便明天可以開工，基本上，因為這些公司，隨著我們看到更多的外包，我們看到更多的工業發展，他們希望為了快速行動，我們必須準備好滿足他們的需求。因此，該團隊的重點是如何在整個網路中創造更多機會，對他們需要去的地方做出反應並創建服務，以便他們可以接觸到客戶。但在開發過程中我們會提供更多數據，但團隊做得很好，而且我們有很大的動力。

Your next question comes from the line of Jordan Alliger from Goldman Sachs.

你的下一個問題來自高盛的 Jordan Alliger。

I was wondering if you could maybe give some color or thoughts around the auto sector. Obviously, it's been an area of a lot of strength, the strikes, work stoppages are going on. How much cushion do you guys have relative to the inventory that's out there versus how long this drags on before it really starts to impact carloads.

我想知道您是否可以對汽車行業發表一些看法或想法。顯然，這是一個力量很大的領域，罷工、停工正在發生。你們對現有庫存有多少緩衝，以及在真正開始影響車輛裝載量之前會持續多久。

Yes. I mean, obviously, we want a quick resolution, the quicker, the better. As you're probably aware of, the industry as a whole has been short on car supply. So to some degree, that's probably helping us or helping the industry to a certain degree. There's certainly some impacts to us. We're seeing strong demand in other areas. Where we have a diverse portfolio, so we're able to probably supply more cars to those customers that have been wanting more cars here recently and diverting some of those as we've seen some impact.

是的。我的意思是，顯然我們希望快速解決問題，越快越好。您可能知道，整個行業的汽車供應一直短缺。因此，在某種程度上，這可能會幫助我們或在一定程度上幫助整個產業。對我們來說肯定有一些影響。我們看到其他領域的強勁需求。我們擁有多元化的產品組合，因此我們可能能夠向最近想要更多汽車的客戶提供更多汽車，並在我們看到一些影響時轉移其中一些汽車。

But my boss here knows that industry more than anybody else, and I keep on asking him every day what his thoughts are. But we'll manage through it. I think more -- this is deferred revenue, and we think the demand still remains out there. So as we move into next year, we expect to capture all the demand that exists.

但我的老闆比任何人都更了解這個行業，我每天都不斷詢問他的想法。但我們會處理好它。我認為更多的是——這是遞延收入，我們認為需求仍然存在。因此，當我們進入明年時，我們希望抓住現有的所有需求。

Your next question comes from the line of David Vernon from Bernstein.

你的下一個問題來自伯恩斯坦的大衛‧弗農。

So Kevin, I wanted to ask you about the drivers of that domestic intermodal growth from a channel perspective. The numbers sort of turned around in week 17, and it's been pretty straightened up to the right. Is this just general stuff you're getting through traditional INCs or is it a parcel company that's doing a little bit more over the rails? Is it a retailer that you've got a direct relationship with? Is there any 1 single driver of what's looking like a pretty big divergence from industry intermodal performance that we should be thinking about there in domestic intermodal?

凱文，我想從通路角度問您國內多式聯運成長的驅動因素。數字在第 17 週發生了逆轉，並且已經向右拉直了。這只是您透過傳統 INC 獲得的一般物品，還是一家在鐵路上做更多事情的包裹公司？它是與您有直接關係的零售商嗎？在國內多式聯運中，是否有任何一個因素導致我們應該考慮與產業多式聯運表現有很大差異？

Well, I think it's not -- there's not 1 single driver. It's the teams working together on the operating side and on the sales and marketing side. They're going after every opportunity there is. And there -- whether it's identifying new lanes, other things that are profitable, we're going after it right now and really being able to lean in and I have to commend the team for their creativity, their ability to work with the -- our partners and operations and really go after things and adapt quickly and react quickly to market demand out there. So we still have a significant value proposition, even with the truck as weak as it is today, and that will only accelerate once the truck firms up a little bit here in the next year. But really, really proud of what they've been able to accomplish, and we've got a lot of momentum around it.

嗯，我認為不是——沒有一個司機。這是營運方面以及銷售和行銷方面的團隊共同努力的結果。他們會抓住每一個機會。在那裡——無論是確定新的車道，還是其他有利可圖的事情，我們現在正在努力，並且真正能夠投入其中，我必須讚揚團隊的創造力，以及與——我們的合作夥伴和營運部門真正追求事物並快速適應並快速回應市場需求。因此，即使卡車像今天一樣疲軟，我們仍然有一個重要的價值主張，而且只有明年卡車在這裡稍微穩定一點後，這種價值主張才會加速。但真的，我們對他們所取得的成就感到非常自豪，而且我們對此充滿動力。

Your next question comes from the line of Walter Spracklin from RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Walter Spracklin。

This is James McGarragle, I'm on for Walter today. I wanted to ask a question on U.S. port share shift towards the U.S. East Coast and away from the U.S. West Coast over the past number of years. You've given the agreements with the unions on the West Coast? Do you expect this share shift to trend to -- towards the East Coast to continue? And any early indication you can share from your conversations with the shipping lines and your strategy to capitalize on these trends longer term?

我是詹姆斯·麥加拉格爾，我今天代表沃爾特。我想問一個關於過去幾年美國港口份額從美國西海岸轉向美國東海岸的問題。你已經與西海岸的工會達成協議嗎？您預計這種向東海岸轉移的趨勢會持續下去嗎？您與航運公司的對話中是否有任何早期跡象可以分享，以及您長期利用這些趨勢的策略？

I think you've heard it over and over again, the West Coast are challenged in terms of being able to add capacity. And so there's been tremendous investments that continue to be made on the East Coast and we're the beneficiary of that. And -- so we'll continue to work with our East Coast ports and expect that trend to continue going forward. You also see a migration out of China and the other markets, and that's also helpful for what we're seeing in terms of imports coming off from new locations that can go that are more likely to go to the East Coast than maybe the West Coast previously. So a lot of good momentum, a lot of significant investments being made. We're making investments alongside of them. to make sure we're prepared for the growth, but it's been a great story. I don't see any reason that, that won't continue going forward.

我想您已經一遍又一遍地聽到，西海岸在增加容量方面面臨挑戰。因此，東海岸繼續進行大量投資，我們是其中的受益者。因此，我們將繼續與東海岸港口合作，並預計這一趨勢將繼續向前發展。你也看到中國和其他市場的遷移，這也有助於我們看到從新地點進口的情況，這些新地點更有可能流向東海岸而不是西海岸之前。因此，勢頭良好，正在進行大量重大投資。我們正在與他們一起進行投資。確保我們為成長做好準備，但這是一個很棒的故事。我看不出有任何理由不會繼續下去。

Your next question comes from the line of Ravi Shanker from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Ravi Shanker。

Just a couple of questions here. One follow-up. Sorry if I missed this, but I was a little surprised to see the headwind on the accessorials get a little bit worse because it sounded like you guys had a pretty good handle on that. Can you just kind of unpack that for us and kind of if that's now a final number and also maybe for Joe, bigger picture, I know the rails are all trying to pivot very heavily towards growth, which has historically been challenging to come by. What do you think about inorganic growth potential opportunities, maybe short lines, maybe trucking? Like is that something you guys are looking at as well?

這裡只有幾個問題。一項後續行動。抱歉，如果我錯過了這一點，但我有點驚訝地看到配件上的逆風變得更糟，因為聽起來你們對此處理得很好。您能否為我們解開這個問題，如果這現在是最終數字，也許對喬來說，更大的前景，我知道鐵路正在努力大力轉向增長，而這在歷史上一直是一個挑戰。您如何看待無機成長的潛在機會，也許是短線，也許是卡車運輸？你們也在看這個嗎？

Ravi, this is Sean. I'll start with the question around the accessorials. So it's been trending down all year long. I would say we took our kind of last sequential step down from Q2 to Q3. It's a little bit more than we expected, but it wasn't just intermodal storage. There were some other components of other revenue that were down slightly. There's a lot of different things in there from subsidiary revenue to switching charges to lots of different factors. So this is probably a good run rate to use going forward. It is also impacted by volume to a degree. So it will trend to a little bit higher when the intermodal volumes recover likely. But the level that we're at right now, we do think is kind of the bottom, and that's why we just wanted to make sure everybody understood where we were headed for the fourth quarter on that line.

拉維，這是肖恩。我將從有關配件的問題開始。所以全年都呈現下降趨勢。我想說，我們採取了從第二季到第三季的最後一個連續步驟。這比我們預期的要多一點，但這不僅僅是聯運存儲。其他收入的其他一些組成部分略有下降。其中有許多不同的因素，從子公司收入到轉換費用，再到許多不同的因素。因此，這可能是適合未來使用的良好運行率。它也在一定程度上受到體積的影響。因此，當聯運量可能恢復時，它會趨於略高。但我們確實認為我們現在所處的水平是底部，這就是為什麼我們只是想確保每個人都了解我們第四季的發展方向。

Thanks Sean and Ravi, just a couple of other comments from your second part of your question, I mean, at the highest level, I wouldn't think that trucking is where we would see growth. We're proud of the acquisition of quality carriers and how that's progressed with us at CSX, but that was very specialized sort of our chemical customers where very strong franchise and a very important business to us. We'll always be opportunistic. But I wouldn't say that trucking is where the growth comes from. But just a couple of areas to highlight that we haven't been highlighted so far tonight. First and foremost, I'll start with the fact that I think you get the sense from this team that we firmly believe that the best way to provide opportunity for growth is to continue to provide class -- best industry-leading service to our customers. And when we do that, it gives us more and more opportunities to win business with customers.

謝謝肖恩和拉維，只是問題第二部分的一些其他評論，我的意思是，在最高層面上，我不認為卡車運輸是我們會看到成長的領域。我們對收購優質營運商以及 CSX 的進展感到自豪，但這是我們非常專業的化學品客戶，他們擁有非常強大的特許經營權，對我們來說是一項非常重要的業務。我們永遠都是機會主義的。但我不會說卡車運輸是成長的來源。但有幾個方面需要強調，今晚到目前為止我們還沒有強調。首先，我將從以下事實開始：我認為您從這個團隊中了解到，我們堅信提供成長機會的最佳方式是繼續為我們的客戶提供一流的行業領先服務。當我們這樣做時，我們將有越來越多的機會贏得客戶的業務。

So that is the foundation of where we see growth. But you have to remember, we've been investing in the New England region, which is the old Pan Am network that we purchased, and that's going to be an opportunity for growth. We're excited about that. We're going to start a new interchange point with CPKC in Myrtle wood, Alabama. We're very excited about that opportunity. And Kevin referenced it, but I want to highlight it, in order for this industry to see significant growth, we have to work better together to be motivated to serve customers in new and better ways and we're starting to have some of those good conversations with other Class I railroads to be able to talk and think differently about how do we serve the customer and how do we get excited about that opportunity.

所以這是我們看到成長的基礎。但你必須記住，我們一直在投資新英格蘭地區，這是我們購買的舊泛美網絡，這將是一個成長機會。我們對此感到興奮。我們將在阿拉巴馬州默特爾伍德與 CPKC 建立一個新的轉乘點。我們對這個機會感到非常興奮。凱文提到了這一點，但我想強調一點，為了讓這個行業看到顯著增長，我們必須更好地合作，以激勵以新的、更好的方式為客戶服務，我們已經開始擁有一些好的與其他 I 類鐵路進行對話，以便能夠以不同的方式談論和思考我們如何為客戶服務以及我們如何對這個機會感到興奮。

So there are a number of incremental steps we can take to grow the business beyond just getting better and all the work they were doing and the cynical nature of our business, which will be some -- some things that should help us going into '24 as both Kevin and Sean mentioned. But those are some incremental areas that we have opportunities and then as our intermodal product continues to get better and we continue to be in the 95-plus percent [indiscernible] compliance reliably, repeatedly and get to the high 90s as the truck market starts to rebound and as costs continue to increase there. We can be even more competitive versus truck and get some more business off the road there.

因此，我們可以採取一些漸進的步驟來發展業務，而不僅僅是變得更好，他們所做的所有工作以及我們業務的憤世嫉俗的本質，這將是一些 - 一些應該幫助我們進入'24正如凱文和肖恩提到的。但這些是我們有機會的一些增量領域，然後隨著我們的多式聯運產品不斷變得更好，我們繼續可靠地、反复地保持95% 以上的[音頻不清晰]合規性，並隨著卡車市場開始發展而達到90 年代的高點。反彈並且成本繼續增加。與卡車相比，我們可以更具競爭力，並在那裡獲得更多業務。

So lots of opportunity for us. We have to continue down the path we're on of continuing to provide that reliable service, but there's some exciting developments going on in addition to all the projects that are going on in industrial development side that as Kevin referenced earlier, will provide more -- maybe some more information on that, not guidance but information on the context of that. But there are hundreds and hundreds of projects in the works in that space. So a lot to be excited about and really excited about the capability of our network to take advantage of that.

我們有很多機會。我們必須繼續沿著我們所走的道路繼續提供可靠的服務，但是除了工業開發方面正在進行的所有項目之外，還有一些令人興奮的發展正在進行，正如凱文之前提到的那樣，這些項目將提供更多 - - 也許有更多關於此的信息，不是指導，而是有關其背景的信息。但該領域有數百上千個項目正在進行中。我們的網路能夠利用這一點，這讓我們非常興奮，也非常興奮。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。