CSX Corporation (CSX) 2024 Q2 法說會逐字稿

Good afternoon, everyone. My name is Briana, and I will be your conference operator today. At this time, I would like to welcome everyone to the CSX Corporation second-quarter 2024 earnings conference call. (Operator Instructions)

各位下午好。我叫Briana，今天將擔任本次電話會議的接線員。此刻，我謹代表主辦方歡迎各位參加CSX Corporation 2024年第二季財報電話會議。（接線員指示）

I would now like to turn the conference over to Matthew Korn, Head of Investor Relations and Strategy. You may begin your conference.

現在我想把會議交給投資人關係與策略主管Matthew Korn。您可以開始了。

Thank you, [Jill]. Hello, everyone, and good afternoon, and welcome to our second-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, Chief Commercial Officer; and Sean Pelkey, Executive Vice President and Chief Financial Officer. In the presentation accompanying this call, you will find slides with our forward-looking disclosure and our non-GAAP disclosures for your review. Also please note that our 10-Q has been filed and is available on our website.

謝謝，[Jill]。各位好，下午好，歡迎參加我們的第二季財報電話會議。今天下午與我一同出席的有：總裁兼執行長Joe Hinrichs；執行副總裁兼營運長Mike Cory；執行副總裁兼商務長Kevin Boone；以及執行副總裁兼財務長Sean Pelkey。在本次電話會議隨附的簡報中，您將看到我們的前瞻性聲明揭露以及非GAAP揭露，供您查閱。另外也請注意，我們的10-Q已完成申報並可於我們的網站取得。

With that, it is now my pleasure to introduce Mr. Joe Hinrichs.

接下來，我很榮幸介紹Joe Hinrichs先生。

Thank you, Matthew, and hello, everyone. Thank you for joining our second quarter call today. Before we start, I want to acknowledge and appreciate all our CSX employees who are out there working throughout the Southeast United States as we deal with weather effects from [Hurricane Debbie]. We are prioritizing the safety of our employees and our communities and everything we do and this was a strong quarter for CSX, I am pleased that our results reflect the momentum that we are building as a one CSX team, and I'm proud to see how teams all across our railroad are working together and better more and more effective ways than ever before.

謝謝你，Matthew，各位好。感謝各位今天參加我們的第二季電話會議。在開始之前，我想先向所有CSX員工致意並表達感謝；當我們因應[Debbie颶風] 的天候影響時，他們仍在美國東南部各地持續工作。我們在所有作為中都把員工與社區的安全放在首位。本季對CSX而言是強勁的一季，我很高興我們的成果反映出我們以「One CSX」團隊所建立的動能；我也很自豪看到整個鐵路系統各團隊以前所未有、更好且更有效率的方式協同合作。

Operationally, we are developing initiatives taken excellent scheduled railroading model and make it safer, leaner and more cost effective while providing the consistency and flexibility that our growing customer base demands. And commercially sales and marketing organization is creating new more targeted methods for us to go to market, create partnerships and use our leading value proposition to convert customers onto CSX rail.

在營運方面，我們正推動各項計畫，承襲卓越的精準排程鐵路（scheduled railroading）模式，並使其更安全、更精實、更具成本效益，同時提供我們日益成長的客戶群所要求的一致性與彈性。在商務方面，銷售與行銷組織正建立新的、更具針對性的市場策略，建立合作夥伴關係，並運用我們領先的價值主張，將客戶轉換至CSX鐵路運輸。

But there's much we have accomplished so far this year, and we are eager to maintain and build on our momentum of the rest of the year. We keep reminding the entire one CSX team. So when we are aligned with each other and work together as one team, there's really nothing we could not achieve. Our employees, our customers and our shareholders are seeing how we are growing the business, controlling costs, leading customer service and leveraging our network capacity in ways we never could before the successful culture, we are building a CSX of delivering positive business outcomes.

不過，今年迄今我們已完成許多工作，我們也渴望在今年剩餘時間維持並延續這股動能。我們持續提醒整個One CSX團隊：當我們彼此對齊、以一個團隊共同合作時，幾乎沒有什麼是我們做不到的。我們的員工、客戶與股東都看見我們如何擴大業務、控管成本、引領客戶服務，並以前所未有的方式運用我們的網路產能；我們正在建立的成功文化，正讓CSX能夠交付正向的經營成果。

Now, we can go over some of the highlights. Let's go to slide 1. On slide 1, we show that some of the key results from our second quarter compared to the revised results from past periods. Later on this call, Sean will provide more detail on the review of the accounting treatment for engineering, scrap and certain engineering support labour as described in our financial report.

現在，我們來回顧一些重點。請看第1頁投影片。在第1頁中，我們展示了第二季的一些關鍵成果，並與過去期間經修訂的結果進行比較。在本次電話會議稍後，Sean將就我們財務報告中所述、關於工程、廢料以及特定工程支援人力之會計處理檢視，提供更多細節。

Total volume grew by 2% with our intermodal franchise, again leading the unit growth of 5% versus last year, and we are proud to achieve this result, even with the constraints at the Port of Baltimore that impacted our coal shipments. Our coal team did an excellent job finding creative ways to respond to the key bridge collapse and deliver for our customers. Our operating margin reached 39.1%, which represents a 280 point basis point sequential improvement. Revenue of just over [$3.7 billion] was flat compared to the second quarter of 2023 and up modestly over last quarter as strong merchandise pricing and volume growth offset lower coal prices and decline in other revenue.

總運量成長2%，其中我們的聯運（intermodal）業務再次領先，單位量較去年成長5%；即使巴爾的摩港的限制影響了我們的煤炭出貨，我們仍很自豪能達成此一成果。我們的煤炭團隊在關鍵橋梁坍塌事件後，透過創新方式因應並為客戶交付，表現非常出色。營業利益率達39.1%，較前一季改善280個基點。營收略高於[$3.7 billion]，與2023年第二季持平，並較上一季小幅成長；強勁的商品（merchandise）定價與運量成長，抵銷了煤價下滑及其他收入下降的影響。

Operating income was 1% lower than last year, but up by 8% sequentially at our efficiency efforts help reduce expense. Our earnings per share were flat versus last year and up by 9% sequentially. Overall, this was a good quarter. There was right in line with our expectations. Had we not those sales in Baltimore. Our operating income would have been higher year-over-year. Our challenge now is to keep moving forward by focusing on our execution even as markets fluctuate and unexpected events occur as they always do.

營業利益較去年下降1%，但在效率提升帶動費用降低之下，較前一季成長8%。每股盈餘與去年持平，較前一季成長9%。整體而言，這是一個不錯的季度。結果與我們的預期一致。若非巴爾的摩的那些銷售影響，我們的營業利益本可較去年同期更高。我們現在的挑戰，是即使市場波動、且如往常般會發生突發事件，仍要透過專注執行持續向前推進。

Now I'll turn the call over to Mike Cory to discuss our operational performance.

現在我把電話會議交給Mike Cory，請他說明我們的營運表現。

Thank you, Joe, and thanks to all of you for joining us today. Here's a rundown of our effort of our operating activities in the quarter. But before I do that, I'd just like to extend my sincere thanks to the one CSX operations team for their effort and the contribution day in and day out. We all hear truly appreciate everyone’s teamwork and efforts.

謝謝你，Joe，也感謝各位今天加入我們。以下是本季我們營運活動努力的概述。不過在開始之前，我想先向One CSX營運團隊致上誠摯的感謝，感謝大家日復一日的努力與貢獻。我們都由衷感謝大家的團隊合作與付出。

So let's go to slide 3. The first slide on safety. We saw positive trends on train accidents for the quarter and year-over-year. Reduction was driven mainly by fewer mechanical related derailments and a reduction in human human failure accidents. Although human failure remains our highest utilization factor. On injuries, we saw both an increase in transportation and engineering and play incidents. slips trips and falls remain the highest related cause for injury.

那麼請看第3頁投影片。先從安全談起。本季以及與去年同期相比，我們在列車事故方面呈現正向趨勢。改善主要來自機械相關出軌事故減少，以及人為失誤事故下降。儘管如此，人為失誤仍是我們最高的致因因素。在受傷事件方面，我們看到運輸與工程相關事件都有所增加；滑倒、絆倒與跌倒仍是造成受傷的最高相關原因。

This is an area where increased attention to risk has tremendous potential to reduce personal injury. Much of our focus is on the development of heightened risk awareness for our less experienced employees who have the highest rate of accident and injury or currents. By working with our union colleagues were becoming better able to help our employees there. How to identify at risk situations and hazards that we have a long way to go through this collaboration.

這是一個只要加強風險關注，就有巨大潛力降低人身傷害的領域。我們的重點之一，是提升較缺乏經驗員工的風險意識；這些員工的事故與受傷發生率最高。透過與工會夥伴合作，我們更能協助員工了解如何辨識高風險情境與危害；但透過這項合作，我們仍有很長的路要走。

We believe improvements in safety will take place. We've also embarked on an all-inclusive safe operations, cultural transformation. Transformation starts with my leadership team and I and will extend throughout to every leader at CSX. This three year initiative is the most extensive safety leadership program we have ever embarked on will support a culture of risk awareness and care for everyone knows they're valued and appreciated. Respected and included one CSX was the first phase of this effort to align the organization to our values and cultural principles.

我們相信安全方面將會出現改善。我們也已啟動一項全方位的安全營運文化轉型。轉型將從我與我的領導團隊開始，並延伸至CSX的每一位主管。這項為期三年的計畫，是我們迄今推動過最全面的安全領導力方案，將支持一種重視風險意識與彼此關懷的文化，讓每個人都知道自己被重視、被感謝、被尊重並被接納；「One CSX」是此項努力的第一階段，用以使組織與我們的價值觀與文化原則對齊。

This next initiative will be an extension of one CSX will have a strong focus on strengthening our safety leadership skills, while building engagement with our employees will be aggressively identifying and eliminating unacceptable risks in our operations, which benefits all our stakeholders. So going over the next slide.

下一項計畫將延伸One CSX，並將強力聚焦於強化我們的安全領導技能，同時提升員工參與；我們也將積極辨識並消除營運中不可接受的風險，這將使所有利害關係人受益。接著我們看下一頁投影片。

Overall, our fluidity metrics have remained pretty consistent. Our train speed has improved. We have seen some variability and well effectively. Our drone metric reflects the combination of our team, focusing on keeping costs tightly in line while maintaining a level of service our customers require. And as we've dug deeply dug into train size, then local service. We found some cases where we were spending money to switch a customer when the services not necessarily required. This was reducing that dwell metric, but wasn't positively impacting the customer experience and a wasted precious train and engine resources as well as overall costs. We're eliminating these unproductive handlings, even though in some cases it will result in higher overall dwell.

整體而言，我們的流暢度（fluidity）指標維持相當一致。列車速度有所改善。我們也看到一些變動，以及我們的車輛利用效率。我們的「drone」指標反映出團隊在緊密控管成本的同時，仍維持客戶所需的服務水準。而當我們深入檢視列車編組規模與在地服務時，我們發現有些情況下，我們花錢為客戶進行調車，但該服務未必是必要的。這雖然降低了停留時間（dwell）指標，但並未正向改善客戶體驗，反而浪費了寶貴的列車與機車資源以及整體成本。我們正在消除這些無效的處理作業，即使在某些情況下，這將導致整體停留時間上升。

On the flip side, we're spending a considerable amount of time evaluating our network infrastructure for identify opportunities that will increase the efficiency of certain yards and reduced while going forward. These valuation exercises start by analysing the present level of production against demand, ensuring proper standards are in place and that those standards are being met.

另一方面，我們也投入相當多時間評估我們的網路基礎設施，以找出能提升特定編組場效率並在未來降低成本的機會。這些評估作業會先從分析目前的產能水準相對於需求開始，確保已建立適當的標準，且這些標準確實被遵循。

Then we aim to increase workload and reduce both handlings that other locations and a reduction of route miles when possible. This can entail simple self-funded improvements in the infrastructure at some of our switching yards to eliminate car handlings and route miles, effectively recruiting more mass where it makes sense, resulting in improved asset speed, service and reliability. As we identify physical improvements to the infrastructure.

接著，我們的目標是在可行時提高工作量，並同時降低在其他地點的重複裝卸作業，以及減少路線里程。這可能包括在我們部分調車場進行簡單的自籌資金基礎設施改善，以消除車輛裝卸與路線里程，並在合理之處有效地集中更多運量，進而提升資產周轉速度、服務水準與可靠性。當我們辨識出基礎設施的實體改善項目時。

We work with our supervisors to lead that process. So they understand how to extract intended value and more. This experience teaches them to continues to strive for both productive work and opportunities for service or growth potential. This initial exercise has been also been supported by a reduction in costs through better utilization of our mentioned major engineering gains as well. Throughout these exercises. Supervisors are the largest area of focus for us as we continue to develop the bench strength on CSX and position them to understand their overall operations better.

我們會與主管們合作來主導這個流程。讓他們了解如何萃取預期價值，甚至更多。這些經驗也教導他們持續追求高生產力的工作，以及服務或成長潛力的機會。這項初始作業也透過更好地運用我們先前提到的重大工程成果，進一步帶來成本下降。在整個過程中。主管是我們最主要的聚焦領域，因為我們持續在 CSX 強化人才梯隊實力，並讓他們更能理解其整體營運。

And we're supporting them through a variety of methods, which include increasing visibility of leading indicators, identify areas, and they get a lot of daily engagement with the senior leadership team. A great greater focus is to ensure they gain a far deeper understanding of the overall operational customer activities within their charge. We expect to continue improving these metrics as we go forward. Through the actions that were supervises, we will always weigh customer need and the cost required to do so.

我們也透過多種方式支持他們，包括提高領先指標的可視性、辨識重點領域，並讓他們每天都能與資深領導團隊有大量互動。更重要的聚焦點是確保他們能更深入理解其所負責範圍內的整體營運與客戶活動。我們預期在未來將持續改善這些指標。在主管所推動的各項行動中，我們始終會權衡客戶需求以及為滿足需求所需的成本。

Overall, I'm satisfied were on the right trajectory. We have opportunities and plans insight for our network infrastructure and as well our operations leaders ability to improve. Turning over the next slide, we continue to work with Kevin and the Sales and Marketing team to align our operations with the needs of our customers. Preferred service and cost discipline are always at the forefront. We strive to understand exactly how our customers work and what they need from us.

整體而言，我對我們走在正確的軌道上感到滿意。在網路基礎設施方面我們有機會與規劃洞見，同時我們的營運領導者也有提升的空間。翻到下一張投影片，我們持續與 Kevin 以及銷售與行銷團隊合作，使營運與客戶需求保持一致。首選服務與成本紀律始終是我們最優先的重點。我們努力精準理解客戶如何運作，以及他們需要我們提供什麼。

Having this information in hand, a field level supervisors and stressing connectivity with their customers allows us to provide a very high level of first and last-mile service. Our trip plan performance selected well metric reflects the same effect from a continuous focus on cost and customer needs. We've identified areas of opportunity to improve rely on more specific first mile and last mile metric, along with customer feedback and engagement to ensure we are delivering the needed service

掌握這些資訊後，讓第一線主管強化與客戶的連結，使我們能提供非常高水準的首末哩服務。我們的行程計畫績效（Trip Plan Performance）與「選擇良好」指標，也反映出我們持續聚焦成本與客戶需求所帶來的同樣效果。我們已找出可改善的機會領域，將更倚重更具體的首哩與末哩指標，並結合客戶回饋與互動，以確保我們交付所需的服務。

You can see in our CSD numbers that are strong customer engagement level of service are taking place. In closing, we have much work to do as we always well. With that said, I'm really excited now that our operations leadership team has been together for close to six months. I can see the improvement being made to clarify the importance of our tasks and to increase our information visibility.

從我們的 CSD 數據可以看出，強勁的客戶互動與服務水準正在發生。最後，我們一如既往仍有許多工作要做。話雖如此，我非常振奮，因為我們的營運領導團隊已經一起合作將近六個月。我看得到正在進行的改善，包括釐清我們任務的重要性，以及提升資訊可視性。

I can also see the deep thirst for learning from all our supervisors at all levels. And this to me is probably the most important factor going forward. This team fully believe that our approach to save balanced and efficient customer focused railroad has many opportunities for improvement ahead, and our plan is to deliver on everyone.

我也看得到各層級主管對學習的強烈渴望。而對我而言，這可能是未來最重要的因素。這個團隊完全相信，我們打造兼具平衡、效率且以客戶為中心的鐵路營運方式，未來仍有許多改善機會，而我們的計畫是為所有人交出成果。

With that, over to you, Kevin.

接下來交給你，Kevin。

Thank you, Mike. As Joe referenced, we are really seeing a lot of positive momentum, particularly around sales and marketing, collaborating with operations. Highlighting these initiatives are the market reviews where our teams come together to discuss and evaluate opportunities to collaborate on operational efficiencies while delivering new solutions to target profitable business.

謝謝你，Mike。如 Joe 所提到的，我們確實看到許多正向動能，特別是在銷售與行銷與營運之間的協作方面。這些舉措的亮點之一是市場檢視會議，我們的團隊會聚在一起討論並評估合作機會，在提供新解決方案以鎖定具獲利性的業務同時，也提升營運效率。

Driving network efficiencies allows us to deliver a more competitive service product and expand the opportunity for growth. We are continue to be very aggressive in pushing forward on our truck conversions, new industrial development projects and creative solutions with the growing number of shippers who want to maximize their use of CSX rail.

推動網路效率讓我們能提供更具競爭力的服務產品，並擴大成長機會。我們持續以非常積極的態度推進卡車轉換、工業新開發專案，以及與越來越多希望最大化使用 CSX 鐵路運輸的託運人合作的創新解決方案。

As you've heard from a number of our peers and competitors across the transportation industry over these past weeks, the trucking market remains challenged and industrial markets are mixed. As we move into the second half of the year, accumulating effects of interest rates, including a sluggish housing market and fluctuating commodity prices, create headwinds for some of the markets we serve. It's a volatile environment, but we continue to drive initiatives to accelerate modal share and expand CSX's addressable market.

正如過去幾週你從運輸產業的多位同業與競爭對手所聽到的，卡車運輸市場仍面臨挑戰，而工業市場表現分化。隨著我們進入下半年，利率的累積影響（包括疲弱的房市與波動的商品價格）為我們服務的部分市場帶來逆風。環境雖然波動，但我們仍持續推動各項計畫，以加速提升運具分擔率並擴大 CSX 可服務市場（addressable market）。

Let's turn to slide 7 and look at our merchandise performance. We had a great result with revenues up 5% on a 1% increase in volume. RPU was higher by 4%, even with fuel surcharge lower year-over-year as we continue to get pricing results that reflect the strong service that the team is delivering. Throughout the second quarter, our chemicals franchise has performed very well as momentum has persisted in plastics, Industrial Chemicals, waste and energy markets.

讓我們翻到第 7 張投影片，看看我們的商品（merchandise）業務表現。在運量增加 1% 的情況下，營收成長 5%，成果非常亮眼。每單位收入（RPU）提高 4%，即使燃油附加費較去年同期下降；我們持續取得反映團隊所交付強勁服務的定價成果。整個第二季，我們的化學品業務表現非常好，塑膠、工業化學品、廢棄物與能源市場的動能持續。

Minerals revenues also saw positive results driven by industrial development wins and our unique network access into the Southeast markets, including Florida, where we see a multiyear glide path for growth. Our forest products business began to accelerate, driven by demand and pulp board and recent wins in the northeast portion of our network.

礦物類營收也呈現正向成果，主要受惠於工業開發案的勝出，以及我們獨特的網路可進入東南部市場（包括佛羅里達）；我們在該地區看到一條跨多年的成長軌跡。我們的林產品業務開始加速，受需求、紙漿板材（pulp board）以及我們在網路東北部近期取得的業務勝利所帶動。

We've been developing some very promising strategic partnerships in this market, take advantage of the capacity that our network has available, which puts us in a good position to gain more truck share as the housing market rebounds, our automotive business saw 4% revenue growth, leveraging our strong service product to deliver a competitive win with a key customer. Less favourable this quarter was metals were high inventories and expectations of weaker steel prices weighed on volumes.

我們在這個市場正發展一些非常有前景的策略夥伴關係，以利用我們網路可用的運能，這使我們在房市回溫時能更有利地爭取更多卡車運量份額；我們的汽車業務營收成長 4%，憑藉強勁的服務產品，成功在一位關鍵客戶上取得具競爭力的勝利。本季較不利的是金屬類，因庫存偏高以及對鋼價走弱的預期，壓抑了運量。

This is probably the market with the most near-term uncertainty as we watch trends and coil plate and scrap prices for a recovery. Fertilizer volumes continue to be heard by phosphate production issues here in Florida. As in past quarters, volumes of this short haul of business does have a favourable mix effect on the total fertilizer RPU. [In ag] and food remains soft on unfavourable regional craft supply dynamics.

這可能是短期不確定性最高的市場，我們正觀察捲材、板材與廢鋼價格的趨勢，以尋找復甦跡象。肥料運量仍持續受到佛羅里達磷酸鹽生產問題的影響。如同過去幾季，這類短途業務的運量在組合上，確實對整體肥料 RPU 具有正向影響。[In ag] 農業與食品仍偏弱，原因在於不利的區域性作物供給動態。

So we are very encouraged by the fundamentals into the back half of the year where we see a weaker South Eastern crop leading to incremental opportunities for growth for the remainder of the year. Despite a sluggish economy and persistently weak trucking market, we expect to capitalize on our best-in-class service to deliver growth. Chemicals should remain strong, supported by business wins, study plastics and healthy waste moves.

因此，我們對下半年基本面感到相當鼓舞；我們看到東南部作物較弱，將在今年剩餘期間帶來額外的成長機會。儘管經濟疲弱且卡車市場持續低迷，我們預期將憑藉同級最佳的服務來實現成長。化學品應可維持強勁，受惠於業務勝出、穩健的塑膠需求以及健康的廢棄物運輸量。

We also see opportunities in our Forest Products segment where we see operational focus differentiating us in the market. We're also anticipating a much better second half for our Ag and food business with demand supported by larger [hog and chicken herds] in the Southeast, which will feed, which will need feed grain supplies from the Midwest.

我們也在林產品領域看到機會，因為我們對營運的聚焦正在市場上形成差異化。我們也預期農業與食品業務在下半年會明顯改善，需求將受到東南部較大的[豬與雞存欄量]支撐，這將帶動飼料需求，而飼料將需要來自中西部的飼料穀物供應。

Turning to slide 8 in the coal business, first, I want to reiterate Joe's comments from the beginning of the call. Our team in Baltimore did a fantastic job of finding creative solutions to move coal after the key bridge collapse. Their efforts made a huge difference in reducing the negative impact that this incident had on CSX and the customers we serve. As we highlighted at a conference earlier this spring. Operations, Curtis Bay were up and running at the end of May several weeks ahead of our original projections.

接著看第 8 張投影片的煤炭業務，首先我想重申 Joe 在電話會議一開始的評論。我們巴爾的摩團隊在關鍵橋梁坍塌後，出色地找到了創新方案來運送煤炭。他們的努力在降低此事件對 CSX 以及我們所服務客戶的負面影響方面，帶來了巨大差異。正如我們在今年春季稍早的一場會議中所強調的。Curtis Bay 的營運在 5 月底恢復運作，比我們原先的預估提前了數週。

For the quarter, revenues were down 12%. We estimate that without the key bridge collapse, the year-over-year decline would have been more in the range of 5%. Volume was down only 3% with the decline driven by domestic shipments largely to utilities. Key here is that our team was able to grow export volume by 8% year-over-year, which is an extraordinary result given the closure of the Port of Baltimore. RPU was 9% lower year-over-year to 6% lower sequentially, in line with our expectations and driven by export benchmark prices and unfavourable utility mix.

本季營收下滑12%。我們估計，若沒有關鍵橋梁坍塌事件，年對年降幅應會落在約5%的區間。運量僅下滑3%，下滑主要由國內出貨所致，且多數流向公用事業客戶。關鍵在於，儘管巴爾的摩港關閉，我們團隊仍能將出口運量年對年提升8%，這是非常卓越的成果。每單位收入（RPU）年對年下降9%，較前一季下降6%，符合我們的預期，主要受出口基準價格以及不利的公用事業組合影響。

Looking ahead, the key benchmark for high quality Australian coal remains above $200 per metric ton. Given the lag in our export coal contracts, we expect a mid to high single digits. The sequential decline for all in coal RPU in the third quarter, but temporary idling of our recently opened export minor network should have little impact on our export volumes as we see strong production offsets at other CSX served mines.

展望未來，高品質澳洲煤的關鍵基準價格仍維持在每公噸200美元以上。考量我們出口煤合約的滯後效應，我們預期第三季整體煤炭RPU將出現中至高個位數的季減。不過，我們近期啟用的出口支線網路暫時停擺，對出口運量影響應不大，因為我們看到其他由CSX服務的礦區有強勁的產量抵消。

Just as we did this last quarter, the team is already finding some creative ways to pivot towards other opportunities in the marketplace where we see strong demand for export capacity at our Curtis Bay terminal. On the domestic side, low natural gas prices continued to impact volumes, but we see some good signs from the hot summer, maximizing their coal units in response to very strong demand. We have also seen inventory levels moderate from the highs seen earlier in the year.

就像上季一樣，團隊已在尋找一些創新的方式，轉向市場上其他機會；我們看到在Curtis Bay碼頭對出口產能有強勁需求。在國內方面，低天然氣價格持續影響運量，但炎熱夏季帶來一些正面訊號，公用事業為回應非常強勁的需求而將燃煤機組開到最大。我們也看到庫存水位已從年初的高點回落。

Finally, turning to intermodal and slide 9. Revenue increased 3% on 5% volume growth. RPU declined 2% as we felt the effects of lower fuel surcharge revenue and negative mix. Our international business drove our volume growth this quarter, supported by higher East Coast ports, import activity and favourable Ally payment with our steamship line partners. This has been the trend through the year, and we've been pleased to see customer activity remains solid so far in the third quarter and contrast momentum in our domestic intermodal business remains muted as weak trucking conditions persist.

最後，談到聯運業務與第9頁。營收在運量成長5%的帶動下增加3%。RPU下滑2%，反映較低的燃油附加費收入以及不利的產品組合影響。本季運量成長主要由國際業務帶動，受惠於東岸港口進口活動增加，以及我們與航運公司夥伴之間有利的Ally付款安排。這一直是今年以來的趨勢；我們也樂見第三季迄今客戶活動仍然穩健。相較之下，由於卡車市場疲弱狀況持續，我們國內聯運業務的成長動能仍偏弱。

The weak trucking market has continued much longer than what was expected coming into the year. But in the meantime, we'll keep pushing hard in a tough environment, leading with our best-in-class service. All in the collective team has been capitalizing on opportunities throughout the year, working together to win business and gain share for CSX with mixed conditions across end markets, we've been able to grow total volume by 3% year to date, while setting ourselves up for more profitable growth over the longer term by demonstrating to our customers I see expands apart for our service, creativity, efficiency and capacity.

疲弱的卡車市場延續的時間遠超出年初的預期。但在此期間，我們仍會在艱困環境中持續全力以赴，以業界領先的服務作為核心競爭力。整體而言，團隊今年持續把握各種機會、協同合作以爭取業務並提升CSX市占；在終端市場景氣好壞不一的情況下，我們仍能使今年迄今總運量成長3%，同時也透過向客戶展現我們在服務、創意、效率與產能方面的差異化，為長期更具獲利性的成長奠定基礎。

Now let me turn it over to Sean.

接下來我把時間交給Sean。

Thank you, Kevin, and good afternoon. As Mike and the operations team continue to drive efficiency with strong service, we're challenging ourselves to hold support costs in line and grow revenue through pricing gains and new business wins. As Joe noted, we've built momentum over the last several quarters, and we're looking ahead the strong year-over-year growth for the second half of the year as we finally cycle some of the discrete items that helped our results in prior years.

謝謝你，Kevin，大家下午好。在Mike與營運團隊以強勁服務持續推動效率之際，我們也要求自己將支援成本控制在合理範圍，並透過價格提升與新業務得標來推動營收成長。如Joe所提，我們在過去幾季累積了動能；展望下半年，隨著我們終於跨過前幾年有利於業績的一些一次性項目比較基期，我們預期年對年成長將相當強勁。

Revenue was flat in the second quarter, while operating income was down 1% when compared to revised prior year results. Merchandise and Intermodal revenue ex-fuel was up 5% and was partially offset by about $100 million of unfavourable impacts related to lower export coal benchmark pricing and the Francis Scott Key bridge collapse. Declines in other revenue, fuel recovery, and trucking drove an additional revenue headwind of nearly $60 million expenses were 1% higher, and I will discuss the line items in more detail on the next slide.

第二季營收持平；與修正後的去年同期結果相比，營業利益下滑1%。扣除燃油後的商品與聯運營收成長5%，但部分被出口煤基準價格下滑以及Francis Scott Key大橋坍塌事件帶來約1億美元的不利影響所抵銷。其他收入下滑、燃油回收以及卡車運輸亦造成近6,000萬美元的額外營收逆風。費用增加1%，我將在下一頁更詳細說明各項目。

Interest and other expense was $11 million higher compared to the prior year, while income tax expense fell by $8 million. As a result, earnings per share was up 9% sequentially and stable year-over-year at $0.49. Let's now turn to the next slide and take a closer look at expenses.

利息及其他費用較去年增加1,100萬美元，而所得稅費用減少800萬美元。因此，每股盈餘較前一季成長9%，年對年持平，為0.49美元。現在我們看下一頁，更深入檢視費用。

As noted in the quarterly financial report, how review of the accounting treatment for engineering, scrap and certain engineering support labour drove immaterial adjustments to previously reported financial statements. Second quarter 2023 expense was revised up by $16 million and going forward, we expect a similar quarterly expense impact split between labour and PS&O.

如季度財務報告所述，我們對工程、廢料以及部分工程支援人力的會計處理進行檢視，導致對先前已揭露的財務報表作出不具重大性的調整。2023年第二季費用上修1,600萬美元；往後我們預期每季會有類似的費用影響，並分攤於人力與PS&O（採購服務及其他）之間。

The labour portion will result in lower capital expenditures and the adjustments for engineering, scrap and labour did not impact cash flow. Total second quarter expense increased by $20 million. Turning to the individual line items, labour and fringe was $18 million as costs from increased headcount and inflation were partly offset by lower incentive compensation and other items.

其中人力部分將使資本支出降低，而工程、廢料與人力的調整不影響現金流。第二季總費用增加2,000萬美元。就各項目而言，人力與附加福利費用增加1,800萬美元，主要因人員編制增加與通膨推升成本，但部分被較低的激勵薪酬及其他項目所抵銷。

Head count declined slightly from first quarter and is expected to remain relatively stable through the remainder of the year. We expect to deliver labour efficiency gains in the second half, while continuing to ensure the training pipeline is stable to offset attrition and support future growth. Also, as a reminder, our union employees are receiving a 4.5%-wage increase effective on July 1, and that will be reflected in a higher sequential cost per employee.

人員編制較第一季略為下降，預期今年剩餘期間將維持相對穩定。我們預期下半年可實現人力效率提升，同時持續確保訓練管道穩定，以抵銷人員流失並支援未來成長。另外提醒，我們的工會員工自7月1日起將獲得4.5%的加薪，這將反映在每位員工的序列成本上升。

Purchase services and other expense increased to $8 million as broad-based efficiency savings and a favourable insurance recovery. Mostly offset costs from inflation, a write-off of inventory in the quarter and other items. Depreciation was up $6 million due to a larger asset base. Fuel costs was down $11 million, driven by a lower gallon price and improved efficiency, partly offset by costs related to higher volume through a combination of operating initiatives and effectively leveraging fuel-saving technologies. We matched our best quarter of fuel efficiency over the last three calendar years.

採購服務及其他費用增加800萬美元，因為廣泛的效率節省與有利的保險理賠回收，大致抵銷了通膨、當季存貨沖銷及其他項目的成本。折舊因資產基礎擴大而增加600萬美元。燃料成本下降1,100萬美元，主要受每加侖價格較低與效率改善帶動，但部分被運量增加相關成本所抵銷；我們透過多項營運措施並有效運用節油技術來因應。我們達成過去三個曆年中燃油效率最佳的一季（並列）。

Finally, equipment and rents decreased by $5 million, while property gains were unfavourable by $4 million. Now turning to cash flow and distributions on slide 13. Free cash flow year to date is $1.15 billion. This reflects lower net earnings and deferred tax payments made this year, partially offset by the prior year impact back wage pay-outs as expected capital expenditures or prioritize investments for the safety, reliability and long term growth of our railroad.

最後，設備與租金費用減少500萬美元，而資產處分收益則不利4,000萬美元。接著看第13頁的現金流與資本回饋。今年迄今自由現金流為11.5億美元。這反映淨利較低以及今年支付的遞延稅款，部分被去年一次性補發薪資的影響所抵銷；同時我們也如預期進行資本支出，優先投資於鐵路的安全、可靠性與長期成長。

After fully funding these investments, we distributed nearly $1.3 billion to shareholders here to date, and we remain committed to our balanced and opportunistic approach to returning excess cash. A long-term focus on economic profit further aligns our interests with our shareholders. While economic profit is lower year to date, as we cycle prior year comparisons, the team is strategically focused on growing this measure over time. We expect second half economic profit to be up versus the prior year as profitable growth is paired with disciplined asset utilization and attractive returns on our capital investments.

在充分投入這些投資之後，我們今年迄今已向股東回饋近13億美元；我們仍致力於以平衡且具機會性的方式返還多餘現金。長期聚焦於經濟利潤，能進一步使我們的利益與股東一致。雖然今年迄今經濟利潤較低，但隨著我們跨過去年同期比較基期，團隊正以策略性方式專注於隨時間提升此一指標。我們預期下半年經濟利潤將較去年增加，因為獲利性成長將與嚴謹的資產運用及具吸引力的資本投資報酬相結合。

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

接下來我把時間交回Joe，請他做結語。

All right. Thank you, Sean. Now we will wind up our prepared remarks by reviewing our guidance for the full year 2024. We look at slide 16. We expect total volume and total revenue growth in a low to mid-single digit range for the second half of the year. Total first half revenue was slightly below original expectations, largely due to lower fuel prices.

好的。謝謝你，Sean。現在我們將以回顧2024年全年指引來結束事先準備的談話內容。請看第16頁。我們預期下半年總運量與總營收成長將落在低至中個位數區間。上半年總營收略低於原先預期，主要因燃油價格較低。

The macroeconomic environment does appear a little more uncertain than it did a few months ago. That said, as Kevin described, in merchandise, we see promise across chemicals, forest products, Ag and food and minerals market, supported by increasing customer activity, the ramp-up of new projects, and a growing portfolio of business wins.

宏觀經濟環境看起來確實比幾個月前更不確定一些。即便如此，如Kevin所述，在商品業務方面，我們在化學品、林產品、農業與食品以及礦產市場都看到成長潛力，並受到客戶活動增加、新專案逐步放量，以及業務得標組合持續擴大所支撐。

On the other hand, metals and fertilizers at both lagged and appears likely to remain softer through the end of the year. We expect momentum to gradually build in intermodal, supported by strong port activity and the strength of our service performance, which is facilitating new ways of working together with our channel partners, is allowing us to drive small but meaningful modal conversions even as the truck market still remains soft.

另一方面，金屬與化肥兩者皆落後，且看來可能在年底前仍將維持疲弱。我們預期聯運動能將逐步增強，受惠於強勁的港口活動以及我們服務表現的優勢；這也促成我們與通路夥伴以新的方式協作，使我們即便在卡車市場仍偏弱的情況下，仍能推動小幅但具意義的運具轉換。

The reopening of the Port of Baltimore returned to full operations at Curtis Bay and consistent domestic demand should lead to a modest pickup in coal shipments in the second half of the year. Continue to price according to our leading service work better together as a one CSX team and push forward on our efficiency initiatives.

巴爾的摩港重新開放後，Curtis Bay 已恢復全面營運，而穩健的國內需求應可帶動下半年煤炭出貨量小幅回升。我們將持續依據我們領先的服務來進行定價，以「一個 CSX 團隊」的方式更好地協作，並推進我們的效率提升計畫。

As a result, we expect to deliver meaningful operating margin expansion on a year-over-year basis in the second half, supported by a very strong incremental margin on our revenues.

因此，我們預期下半年將在年對年基礎上實現具意義的營業利益率擴張，並由我們營收的非常強勁增量利潤率所支撐。

Our CapEx forecast of approximately $2.5 billion is unchanged, as does our balanced opportunistic approach to capital returns. We are encouraged by our accomplishments to accomplishments over the first half of the year. Now we are very focused on executing our plan or the rest of 2024 as we position ourselves for sustained profitable growth over the long term. We have the capacity, the operating model, leadership team and the culture we need to ensure that we were the best run railroad in North America. We look forward to sharing more details about our strategy at our upcoming Investor Day in November.

我們約 25 億美元的資本支出（CapEx）預測維持不變，我們在資本回饋方面的均衡且機會導向的作法亦同。我們對上半年所取得的成果感到鼓舞。目前我們非常專注於執行 2024 年剩餘期間的計畫，以便在長期為持續且獲利的成長做好定位。我們具備所需的產能、營運模式、領導團隊與文化，以確保我們成為北美營運最佳的鐵路公司。我們期待在 11 月即將舉行的投資人日分享更多策略細節。

Thanks for your interest in our company. Matthew, we're ready to take questions.

感謝各位對本公司的關注。Matthew，我們準備開始回答問題。

(Event Instructions)

(活動說明)

Brian Ossenbeck, JPMorgan.

Brian Ossenbeck，摩根大通。

Hey, Good afternoon. Thanks for taking my question. So maybe with Kevin, just wanted to see if you're feeling any impact you're seeing any impact from the potential East and Gulf Coast labor disruption doesn't sound like that's the case, but wanted to see if there's anything in particular that you're hearing from customers and maybe some points we've seen a lot international volume. You gave the reasons for that. But when you think some of that would start spill over into the domestic side?

嗨，午安。謝謝讓我提問。所以也許先請教 Kevin，想了解你們是否感受到、或看到任何來自潛在東岸與墨西哥灣沿岸勞工中斷的影響；聽起來似乎沒有，但仍想確認一下你們從客戶那邊聽到的情況，以及一些重點。我們看到國際貨量很多。你也說明了原因。但當你思考這些何時會開始外溢到國內端？

Yeah, I guess that's the magic question, right. one of the domestic market recover on given what we've seen on the export or the import side of the business. I think on idle, we're still not hearing from customers of major shift them and their activity from the east to the west on if that were to occur, I think you probably presents maybe more opportunities than risks for our business on particular, especially as some things I want to move further into the East, the eastern part of our network where today that's truck.

是的，我想這就是那個關鍵問題，對吧：在我們看到出口或進口端的表現之後，國內市場何時會復甦。我認為到目前為止，我們仍未聽到客戶有大幅把活動從東岸轉到西岸的情況；若真的發生，我想對我們的業務而言，可能機會大於風險，特別是當有些貨物流向我們網路更東側的區域，而那部分目前多由卡車承運。

So it's a watch item for us on will be because with Mike and his team and on April to capitalize on that as we see a shift, which the team is well prepared to capitalize on some. Yes, we all listen to the earnings calls from customers on the domestic side. And I think we all came into the year a little bit more optimistic on the recovery will come, but has been posted to the right, that's for sure. And I think hopefully on the import business will be a precursor to some better days ahead on the domestic side. But we're not yet seeing that uplift necessarily as you heard from a lot of our customers on their earnings calls.

所以這是我們持續關注的事項；我們會與 Mike 及其團隊密切合作，並在看到轉移時加以掌握，而團隊也已做好準備去承接其中一部分。是的，我們也都在聽國內端客戶的法說電話。我想我們在年初對復甦的到來都稍微更樂觀一些，但確實已經往後延了。我希望進口業務能成為國內端好轉的前兆。但目前我們還沒有必然看到那樣的提振，正如你從許多客戶的法說中聽到的一樣。

Scott Group, Wolfe Research.

Scott Group，Wolfe Research。

Hey, thanks, afternoon, guys. So I'm sure that the comments about meaningful margin improvement in the back half. Any directional colour what that means? And I know every quarter you gave us some thoughts on sort of the sequential puts and takes for margins and earnings to good quarter in a row with cost ex fuel coming down. Do you think that continues stuff like that? Thank you.

嗨，謝謝，午安，各位。我想確認一下你們提到下半年會有「具意義的」利潤率改善。能否提供一些方向性的說明，這大概代表什麼？另外，我知道你們每一季都會分享一些關於利潤率與獲利的環比增減因素；這一季成本（不含燃料）下降，已經連續兩季表現不錯。你們認為這樣的趨勢會延續嗎？謝謝。

Sure, Scott. Yes, I mean, we're not going to give a pinpoint estimate on meaningful improvement in margins are probably would have done that, obviously, but dumb feel good about the setup for the second half of the year. And I think what's exciting is some of the sort of dust that's been in the year in terms of year-over-year comparisons starts to come here in the second half of the year.

當然可以，Scott。是的，我們不會對「具意義的」利潤率改善給出精確數字；如果要那樣做，我們顯然早就做了。但我們對下半年的態勢感到樂觀。我認為令人振奮的是，今年在年對年比較上的一些雜音，會在下半年開始消退。

And you'll see the core momentum that we continue to build, both on the cost side, but also that pricing action supportive of the service reflective of the service that we're delivering, as well as the growth that we're seeing in the business that will drop through at very attractive incremental margins. Sequentially, second to the third quarter, you got a couple of things going on that are probably worth remembering one is Kevin's guidance on the coal RPU, which will be down mid to high single digits. That will be a big impact.

你會看到我們持續累積的核心動能，不僅在成本面，也包括定價行動——這些定價是由我們所提供的服務所支撐並反映該服務水準——以及我們在業務上看到的成長，而這些成長將以非常具吸引力的增量利潤率落到獲利上。就環比而言，從第二季到第三季，有幾件事值得記住：其一是 Kevin 對煤炭每單位收入（RPU）的指引，將下降中到高個位數百分比。這會帶來很大的影響。

We got the wage step up for us. That will be about 20 million fuel. We had positive lag in the second quarter. So depending on where prices go, that could be a headwind as well. That said, we're holding the line on expenses. The things that we can control, obviously, we can't control the wage increase or fuel prices. But outside of that, we feel good about the run rate that we're at in terms of second quarter for expenses. And our focus is on the growing year-over-year and delivering that growth at strong incremental.

我們也會面臨薪資的階梯式上調。這大約是 2,000 萬美元。燃料方面，我們在第二季有正向落後效應（lag）。因此取決於價格走勢，這也可能成為逆風。即便如此，我們仍會守住費用。對於我們能控制的部分——顯然我們無法控制薪資上調或燃料價格。但除此之外，我們對第二季費用水準所呈現的運行率（run rate）感到滿意。我們的重點是推動年對年成長，並以強勁的增量利潤率交付這些成長。

Jonathan Chappell, Evercore ISI.

Jonathan Chappell，Evercore ISI。

Thank you. Kevin and maybe looping, Mike, in here as well. Back on the opportunities, I think there's a lot of uncertainty around what could happen with the port. There's probably a perception that the East Coast rails are hit more directly. But as you mentioned, there's probably more kind of long haul as it relates to intermodal, et cetera.

謝謝。Kevin，也許也請 Mike 一起回答。回到機會面，我認為港口可能發生的情況存在很多不確定性。外界可能認為東岸鐵路會更直接受到衝擊。但如你所提，可能更多是與聯運等相關的長途運輸。

Can you just tell us how you think about the US opportunities and risks of this because it gets closer and what it does have the network as far as keeping balance and resources that are required if there were to be a stoppage and you did have to kind of shift toward Chicago focus as opposed to some of the East Coast ports?

你能否談談你們如何看待這件事在美國的機會與風險，因為時間越接近，對網路的影響、在維持平衡以及若真的停工所需的資源配置上會是如何？如果真的發生停擺，而你們必須把重心轉向以芝加哥為核心，而不是一些東岸港口，你們會怎麼做？

Yeah. I'll let Mike follow-up. But from a capacity standpoint, where we're working really close with our team. I think we're well positioned to adjust as we have in the past on when these events happen temporarily. But like you mentioned, there's opportunities probably for some longer-haul business, should we see a disruption on the East Coast and some more volumes that would traditionally move east local and think about the New York markets and maybe some of the South Eastern markets that are locally truck on that would have to move through the West Coast. That's an opportunity for all of us to participate and will be more than ready to do that.

好的。我先請 Mike 補充。但就產能而言，我們與團隊合作得非常緊密。我認為我們具備良好條件，能像過去一樣在這類事件暫時發生時進行調整。不過如你所說，若東岸出現中斷，可能會帶來一些較長途的業務機會；一些原本會在東岸本地向東移動的貨量——例如紐約市場以及部分美國東南部市場——目前多由卡車在地承運，若必須改由西岸進出，就會需要穿越運輸。這是我們所有人都能參與的機會，而我們也會做好充分準備。

But I'll hand it over to Mike to talk about capacity.

我把時間交給 Mike 來談產能。

Sure. Thanks, Kevin. Hi, John. [What's the] capacity John? we have the odd you had train train pair, let's say that's a higher rate of using capacity, but for the most part, our network can withstand whatever Kevin brings us. In terms of intermodal, we've done a lot of work at our terminals. Our intermodal team has is really dug in deeper over the last six, eight months to provide that great first mile last mile for the customer. But in terms of the capacity over the network, it's there for us to get that get the business.

當然可以。謝謝你，Kevin。嗨，John。[目前的]運能 John？我們偶爾會遇到你提到的列車對列車的情況，可以說那是較高的運能使用率，但就大多數情況而言，我們的網路足以承受 Kevin 帶給我們的任何需求。就聯運而言，我們在場站做了大量工作。我們的聯運團隊在過去六到八個月確實更深入投入，為客戶提供優質的首里與末里服務。但就整體網路的運能來看，我們具備能力去承接並拿下這些業務。

Chris Wetherbee, Wells Fargo.

Wells Fargo 的 Chris Wetherbee。

Hey, thanks. Good afternoon, guys. I guess real quick, I don't know if you gave it. I apologize if I could you give us the number the for the accounting change for the quarter, the impact on 2Q? And then I guess I was curious about how you think about pricing sort of going forward as you see service product continued to be very solid. There's some opportunities on the volume side. I know you do most of the repricing probably towards year end. Are you seeing any of that acceleration in terms of the year-over-year growth and able to capture on new contracts that are 2Q and into 3Q?

嗨，謝謝。各位下午好。我想很快問一下，我不確定你們是否已經提供過。如果可以的話，能否請你們給我們本季會計變更的數字，以及對 2Q 的影響？另外我也想了解，當你們看到服務產品持續非常穩健時，你們如何看待未來的定價走勢。在運量端也有一些機會。我知道你們大部分的重新定價可能會在年底進行。你們是否看到年增率有加速，並且能在 2Q 以及進入 3Q 的新合約上反映出來？

Chris, it's Sean. I'll take the restatement first. So what I mentioned was that of $16 million impact in the prior year split between labour and PS&O some even though there was no restatement for Q2, obviously, because we're reporting Q2 results of this year for the first time, that impact was similar in the second quarter. And that's pretty similar to what we expect on a go-forward basis as well.

Chris，我是 Sean。我先回答重編（restatement）的部分。我剛才提到的是，前一年有 1,600 萬美元的影響，分攤在勞務與 PS&O 之間；雖然第 2 季並沒有重編，因為我們是第一次報告今年的第 2 季結果，但第 2 季的影響也大致相同。而且這也與我們對未來持續期間的預期相當一致。

I'll turn it over to Kevin for pricing.

我把定價的部分交給 Kevin。

In the second question, clearly, no facing a truck market when you're trying to convert truck is not the most ideal backdrop on to do that. But we've had a lot of success. And then you have clearly see that that's really build and build momentum as that market comes back. So and on the intermodal side, not as strong of a pricing environment, which we've been pretty transparent about on the merchandise side, given our service, given the value we're providing to customers, given the efficiencies we're driving for them, we're having really good discussions around there.

就第二個問題而言，當你想把貨量從卡車轉到鐵路時，面對卡車市場的環境顯然不是最理想的背景。但我們已經取得很多成功。而且你也可以清楚看到，隨著市場回溫，這股動能會持續累積、越來越強。至於聯運方面，定價環境沒有那麼強，我們在雜貨（merchandise）業務上也一直很透明地說明；但考量到我們的服務、我們為客戶提供的價值，以及我們替他們推動的效率提升，我們在那方面正進行非常好的討論。

And you're right, a lot of that repricing every year comes out of the end of the year in the first part of next year. But with inflation coming down, those things, those will be factors as well. But we still nothing's really changed from our from our strategy there. We want to go after volume and price and deliver the value to our customers. So they see the value and giving us more business along with it. Obviously covering the cost and inflation that we will have to absorb every year.

你說得沒錯，每年的重新定價多半會在年底以及隔年年初發生。但隨著通膨下滑等因素，這些也都會成為影響因子。不過我們的策略並沒有真正改變。我們希望同時爭取運量與價格，並把價值交付給客戶。讓他們看見價值，進而帶來更多業務。當然也要涵蓋我們每年必須吸收的成本與通膨。

Tom Wadewitz, UBS.

UBS 的 Tom Wadewitz。

Yes, good afternoon. Wanted to see, Mike, if you could offer some thoughts on how you think that the network is running. I think some of the metrics show a little bit of deterioration in terms of like on-time arrivals or carload trip plan compliance. I wonder if you think you know why you think that would be the case and whether you would expect those metrics to to rebound as you look into 3Q and 4Q?

是的，下午好。Mike，我想請你談談你如何看待目前網路的運行狀況。我認為有些指標顯示略有惡化，例如準點到達率或車皮運行計畫符合度。我想知道你認為為什麼會這樣，以及你是否預期在展望 3Q 和 4Q 時，這些指標會回升？

Sure. Thanks for the question . Look, we have we have really made a lot of changes here the last six months, most focused on two things won't safety first as though you can tell by our metrics on that, but service we whatever we do in terms of weather as we make changes to the operating plan, which in some cases has caused trains not to run on time right down to making sure that the assets that we have out there are being pushed.

當然。謝謝你的問題。你看，我們在過去六個月做了很多改變，主要聚焦兩件事：第一是安全——從我們的指標你也看得出來；第二是服務。我們所做的一切，不論是天候因素，或是我們調整營運計畫，在某些情況下確實造成列車未能準點運行；一直到確保我們在外部配置的資產都能被有效運用。

So locomotives being stored, we're doing we're doing things right now just to test the railway. And yes, there's been there's been some drop in some of the metrics. And yes, they will improve as we go forward. But we have opportunities here, first of all, with a very young can partake in it. So the changes we're making and yet they're having some effect, nothing material that some effect on some of our some of our lagging indicators.

例如機車的封存，我們現在做的一些事情其實是在測試鐵路系統。是的，有些指標確實出現下滑。而且是的，隨著我們往前推進，這些會改善。但我們也有機會，首先，我們有一支非常年輕、可以參與其中的團隊。所以我們正在做的改變確實會帶來一些影響，但沒有重大到足以改變局勢，只是對我們部分落後指標造成一些影響。

But what we're able to do from a cost perspective and still maintain that service is powerful. And really by focusing on the connectivity between our field people and their customers, we're starting to see even more benefits come up. Yes. We'll get our metrics back. But at the same time, we're not we're not running for a metric. We're running for service. We're running for a return, and that's very important.

但從成本角度來看，我們仍能維持服務水準，這點很有力。而且透過聚焦於我們現場人員與其客戶之間的連結，我們開始看到更多效益浮現。是的。我們會把指標拉回來。但同時，我們不是為了指標而跑。我們是為了服務而跑。我們是為了報酬而跑，這非常重要。

And so Tom for me, just learning as I go, I've been here 10 months now. I'm not overly concerned. And trust me, it's a focus as we go through to improve those metrics. And prior to this storm we had going on we had a pretty good July. Those regards. So some metrics will improve but focuses on cost and service and safety. And that will figure out the right metrics from there.

所以 Tom，就我而言，我邊做邊學，我到這裡現在 10 個月。我並不太擔心。相信我，我們會持續聚焦改善這些指標。而在這場風暴發生之前，我們 7 月其實表現得相當不錯。就那些方面而言。所以有些指標會改善，但重點仍是成本、服務與安全。然後我們會從那裡找出正確的衡量指標。

Ben Nolan, Stifel.

Stifel 的 Ben Nolan。

Hey, I appreciate it. Thank you, guys. At the half is going to ask a little bit on the chemical side. It is that has been working pretty well for you guys. A was curious how you had if you think it is just fundamentally there's just a lot more chemicals removed or is this share gains maybe relative to the trucking side of the business or maybe competitors and a framing that you can talk to you on the chemical side would be helpful.

嗨，感謝。謝謝各位。我想稍微問一下化學品這一塊。這部分對你們來說運作得相當不錯。我想了解你們是否認為這主要是基本面上化學品出貨量就是更多了，還是說相較於卡車端的業務、或相較於競爭對手，你們有取得市占提升？如果能就化學品這塊提供一些框架說明會很有幫助。

Yes. I mean, I think you've first got to start with last year. Obviously, that was a difficult backdrop for our chemical market, but we have seen some wins on the industrial development side of that are really starting to help us there. And so that's been positive in the plastics market. So we really capitalize on those opportunities.

是的。我的意思是，我認為你首先得從去年談起。很明顯，去年對我們的化學品市場而言是個艱困的背景，但我們在工業開發端看到一些勝利，現在真的開始在那方面幫到我們。而且在塑膠市場也是正向的。所以我們確實把握住了那些機會。

And I think it's all the valve that you mentioned. We obviously have count quality carriers and that alignment with them that have that understanding of the market has helped us in our conversations with customers, common factors, risks and customer, where we're kind of bundling that opportunity together and allows us for us to work together and whiteboarding sessions to really look at their total network and how we can make that rail more rail centric over time.

我認為也包含你提到的所有因素。我們顯然有高品質的承運商，並且與他們的合作對齊，加上他們對市場的理解，這有助於我們與客戶的對話；在共同因素、風險與客戶面向上，我們把這些機會做某種程度的打包，讓我們能一起合作，透過白板討論（whiteboarding sessions）真正檢視他們的整體網路，以及我們如何隨時間推進，讓他們的運輸更以鐵路為核心。

So those are exciting things. Some of the things that we've been working on for a long time that are really picking up momentum. But it's really all of the above. It starts with the leading service and the in the East. And we're really on delivering on that and the but allows us to have a really different conversation with our customers. And we were able to a year or two ago.

所以這些都是令人振奮的事情。有些是我們長期在做的工作，現在真的開始加速累積動能。但基本上是多重因素共同作用。起點是我們在東部的領先服務。而我們確實在交付這件事；這也讓我們能與客戶展開非常不同的對話。而這是我們在一兩年前還做不到的。

Eric Morgan, Barclays.

Eric Morgan，巴克萊。

Hey, good afternoon and thanks for taking my question. I wanted to ask on industrial development was just wondering if you could offer any update on some of those projects. I don't think the merchandise slide called out the on that 1% contribution to the merchandise volumes you called out last quarter. So just wondering if that's still a target. And I'm curious as to any other progress you've made since last quarter, the incremental that might have to be tracking closer to the high end of that 1% to 2% range you've talked about for, I think, '25 or '26.

嗨，午安，謝謝讓我提問。我想問一下工業開發方面，想請你們就其中一些專案提供最新進度。我記得上季你們提到商品運量有 1% 的貢獻，但我不認為商品那張投影片有特別點出這一點。所以想確認這是否仍是目標。另外也想了解自上季以來你們還有哪些進展；是否有新增的動能，可能讓你們更接近你們談到、我想是 2025 或 2026 年的 1% 到 2% 區間的高端？

Yes. I mean, Joe mentioned an Investor Day in November, and we're certainly going to put probably more of a vote on this. The story and kind of open up a lot more of the details and and share with on with all of you. But we are seeing that acceleration of this year-over-year in that range that I mentioned. And when you look at full run rate and some of these projects can take a year or two to really get up to full run rate volume. But the pickup in terms of things that we're seeing and put in place this year has certainly accelerated this year, and we anticipate that will accelerate next year and then the following year.

是的。我的意思是，Joe 提到 11 月會有投資人日，我們當然會在那時把這部分講得更完整。把整個故事以及更多細節攤開來，並與各位分享。但我們確實看到我剛才提到的那個區間內的年增加速。而且當你看完整的達產（full run rate）時，這些專案有些需要一到兩年才能真正爬升到滿載運量。不過，就我們今年看到並已落地的事項而言，確實已在今年加速，我們預期明年會再加速，後年也會如此。

So that means for several years of growth as those projects really come up to full rate production on average, a lot of these projects are $1 million or $2 million. So it's a lot of small things that add up to a fairly large number. And we do have the larger projects in there as well. But it's a very diverse set of projects, opportunities that are coming online across number of our merchandise network of segments. So that's exciting. Um, we still see the momentum out there. I think it's going to be fun to talk about it in November. And I'm sure that some share more of those details with you.

所以這代表未來好幾年都會有成長，因為這些專案平均而言會逐步爬升到滿載生產。很多專案規模大概是 100 萬或 200 萬美元。所以是很多小項目累積起來，最後會變成相當可觀的數字。當然我們也有較大型的專案在其中。但整體來說，這是一組非常多元的專案與機會，正陸續在我們商品運輸網路的多個區隔上線。所以這很令人振奮。嗯，我們仍看到外部動能。我想 11 月談這個會很有意思，也相信到時能與各位分享更多細節。

Ken Hoexter, Bank of America.

Ken Hoexter，美國銀行。

Hey, great. Good afternoon. And Sean can you just I guess can you clarify when you say come in for improvement in January? Answering Scott's question, but you didn't say if you're going to see sequential improvement or decline, I just want to clarify if you if you were suggesting you're going to see improvement sequentially. And then when you mentioned labour, flattish, do you still see opportunities to cut costs there or can we see progress on that or is it kind of the risk fine level you expect to run it? Thanks.

嗨，很好。午安。Sean，你能否釐清一下你說 1 月會有改善是什麼意思？你在回答 Scott 的問題時提到，但你沒有說你預期會看到環比改善還是下滑；我只是想確認你是否在暗示會看到環比改善。另外你提到勞動成本大致持平（flattish），你們是否仍看到在那裡降成本的機會？我們是否能看到相關進展？還是說那大概就是你們預期會維持的合理水準？謝謝。

Yes, Ken, I'll take the sequential part first. We're not going to guide specifically to sequential. I did lay out a couple of factors there that are be somewhat challenging from 2Q to acute into tick 3Q in terms of the wage step up, the net fuel and the on the coal RPU. That being said, core expenses, we should trend pretty similarly take Q2, and we'll see what happens in terms of the demand side of the equation. But again, feel good about low to mid single digit volume and revenue growth year-over-year in the second half.

好的，Ken，我先回答環比的部分。我們不會特別針對環比提供指引。我確實列出幾個因素，從第二季到第三季可能會有些挑戰，包括薪資階梯式上調、燃油淨額，以及煤炭 RPU（每單位收入）。即便如此，核心費用應該會與第二季走勢相近；至於需求端會如何發展，我們再觀察。但再次強調，我們對下半年運量與營收年增低到中個位數仍有信心。

And then in terms of the labour opportunities, I think there's always continued opportunities to do. I've efficiencies on labour mix makes clearly focused on overtime reductions out there on what we're seeing momentum across many of the graphs. These also got a team working very closely at how do we increase retention across the craft workforce, T&E in particular, there's there's significant costs and training those employees. Every time option is extraordinarily important, not just from a, you know, an operating standpoint, but also from a cost and efficiency standpoint. So definitely opportunities going forward.

至於勞動方面的機會，我認為一直都有持續改善的空間。在勞動組合效率上，我們明確聚焦於降低加班；從我們看到的情況來看，許多地點都出現動能。我們也有一個團隊非常密切地在研究如何提升技術工種（craft workforce）的留任率，特別是 T&E（列車與機務）這一塊，因為訓練這些員工的成本相當高。每一次的流失都極其重要，不只是從營運角度，從成本與效率角度也是如此。所以未來確實還有機會。

On the labour side, even if it's not headcount, I think head count will be pretty stable. And we will drive year-over-year improvements and headcount efficiencies where we do expect volume to grow more than headcount in the second half.

在勞動端，即使不是人頭數，我認為人力編制會相當穩定。而且我們會推動年對年的人力效率改善；我們預期下半年運量成長會高於人頭數成長。

Daniel Imbro, Stephens

Daniel Imbro，Stephens。

Okay, great. Thanks. This is Brendan on for Danielle. I wanted to ask, as we've gone through earnings season, we've heard some anecdotes about the truck market, maybe moving a little closer to balanced than it has been over the last couple of years and maybe even showing some signs of seasonality. Again, I wanted to ask, have you seen or heard any anecdotes from customers to suggest truck to rail conversions are picking up sequentially or could pick up in the back half? Thanks.

好的，很好。謝謝。我是 Brendan，代 Danielle 提問。在這一輪財報季中，我們聽到一些關於卡車市場的說法，認為它可能比過去幾年更接近平衡，甚至出現一些季節性跡象。我想再問一次：你們是否從客戶那邊看到或聽到任何跡象，顯示卡轉鐵（truck-to-rail）的轉換在環比上正在回升，或可能在下半年回升？謝謝。

Yes. Listen to the same calls you did. I think they're obviously a lot closer to it on a day-to-day basis on than we are. I think the environment's persisted longer than what we expected than everyone expected. Quite frankly, we're just setting ourselves up for the recovery, and I think we're well positioned there. But I don't have any additional antidotes the to add to what we've all heard on. I'm hopeful that we're further along in this cycle than the knot. And I think we're set up with what Mike mentioned on our intermodal upside for from a capacity standpoint, we're better positioned than we ever have to bring on the volume.

是的。我們也聽了跟你一樣的電話會議。我想他們在日常層面顯然比我們更貼近。我認為這個環境持續的時間比我們預期的更久，也比大家預期的更久。坦白說，我們就是在為復甦做好準備，我認為我們在那方面的布局很到位。但我沒有額外的案例（anecdotes）可以補充，超出我們大家已經聽到的內容。我希望我們在這個循環中已經走得比想像中更前面。而且如 Mike 提到的，就我們的聯運（intermodal）上行空間而言，從產能角度看，我們比以往任何時候都更有條件承接新增運量。

Jason Seidl, TD Cowen.

Jason Seidl，TD Cowen。

I wanted to dig a little bit deeper, Joe, to a comment you made. You talked about it now there appears there or was that comment more related to what we've seen sort of over the past two weeks with PMI being negative again in the job number that we saw last week? Or was this from what your customers might be telling you what if it is from the customers? Maybe you could elaborate or give us more colour on that .

Joe，我想就你剛才的一段評論再深入一點。你提到現在看起來……或者說那段話比較是針對我們在過去兩週看到的情況，例如 PMI 再度轉負，以及上週公布的就業數據嗎？還是這是來自你們客戶告訴你們的訊息？如果是來自客戶，也許你可以再多做一些說明或提供更多細節（colour）。

Thanks, Jason. I think covenants highlight a number of the areas where area we didn't talk about was automotive. And while we had a strong performance in the first half of the year, I think you've seen the shipments over the last few weeks have been down a little bit coming out of their shutdown period. So that's one we watch very carefully from the consumer side of things. Interest rate sensitivity, you think about it, how is the market auto market are two big growth areas in our business that are very rate sensitive.

謝謝，Jason。我想你提到的涵蓋了幾個面向；我們還沒談到的一個領域是汽車。雖然我們上半年表現強勁，但我想你也看到，過去幾週在他們停工期結束後，出貨量有些下滑。所以這是我們從消費端角度會非常密切關注的一項。利率敏感度方面，你想想看，住房市場與汽車市場是我們業務中兩個很大的成長領域，而它們都對利率非常敏感。

So we're watching it very carefully. But my comment was, you know, so that's in addition to all that stuff. It's Kevin talked about earlier in my comment was more in general. I think I mean, we are thinking about this call is even before today's events in the marketplace. I think there's just a little more uncertainty about where the economy really is. And we see a number of areas that we're excited about one-half of the year. But clearly, we're watching what happens with the Fed were watching what happens in the general economy.

所以我們會非常仔細地觀察。但我的評論是，你知道，除了 Kevin 先前提到的那些之外。我剛才的評論比較是更一般性的。我想，我們在準備這通電話會議時，其實是在今天市場事件發生之前就已經在思考這些。我覺得對於經濟實際處於什麼狀態，現在不確定性稍微更高了一些。我們看到下半年有不少讓我們感到興奮的領域。但很明顯地，我們也在關注聯準會的動向，以及整體經濟的變化。

And so I think you could say where we are today versus two months ago, the economy seems to be a little bit more fragile, and we're optimistic that the you know, I can pick itself up, but we're watching very carefully.

因此我想可以說，相較於兩個月前，現在的經濟看起來稍微更脆弱一些；我們仍樂觀地認為經濟可以回升，但我們會非常謹慎地持續觀察。

Stephanie Moore, Jefferies.

Stephanie Moore，Jefferies。

Hi, good afternoon and thank you. I mean, the tenant community and the same love to hear maybe some color that you're seeing from maybe some picked up infrastructure, general industrial investments that we've seen across the southeast of any commentary that would potentially be a slowdown in that activity or acceleration Canada like for it and kind of thought because we cannot afford. Thank you.

嗨，午安，謝謝。我的意思是，租戶社群也同樣很想聽聽你們看到的一些情況，可能是來自我們在美國東南部看到的一些回升的基礎建設、一般工業投資；你們是否有任何評論，這些活動可能會放緩或加速——加拿大之類的——以及某種想法，因為我們負擔不起。謝謝。

Yes, I'm not really any on slowdown. And I think we presented of the slide last time that we do have a really, very diverse portfolio. And there was a lot of focus on the EV market. And certainly we've seen some of that be pushed to the right, but our portfolio is much, much larger than just the UV segment. So other areas, we continue to stay on trend on pace, and we'll obviously have a ramp-up period over time. But we have we are pretty clear line of sight. A lot of construction is already underway.

是的，我其實沒有看到任何放緩。而且我想我們上次也展示了那張投影片，我們確實擁有一個非常、非常多元的投資組合。市場上有很多焦點放在電動車（EV）市場。當然，我們確實看到其中一些被往後延，但我們的投資組合遠遠不只是電動車這一塊。所以在其他領域，我們仍然維持在趨勢上、按進度推進，並且很明顯地，隨著時間會有一段爬坡期。但我們的可視性相當清楚。很多建設其實已經在進行中。

So a lot of some capital out there with these projects needing to be finished. And so we feel pretty good that, um, you know, despite maybe on even if the macro scene a little bit weaker in the back half that these projects are large in large part will continue on and be a positive factor for us in the back half and into the next year in the following year.

所以這些專案需要完成，外面也已經投入了不少資本。因此我們感覺相當不錯，嗯，你知道，即使宏觀環境在下半年可能稍微轉弱，這些大型專案在很大程度上仍會持續推進，並在下半年、以及明年與後年，成為對我們有利的正面因素。

Walter Spracklin, RBC Capital.

Walter Spracklin，RBC Capital。

Yes. Thanks very much. Good afternoon, everyone. I was wondering I don't know if this is a question more for Mike or for Sean. With regard to long term or where your or could go. I know that you and I'm a number of your peers, we're able to achieve a 55 or at least on a quarterly basis in the past. But now with with cost inflation, new work rules and I'm talking really just your rail operation, if you would exclude your trucking from this conversation.

是的。非常感謝。各位午安。我在想——我不確定這個問題更適合問 Mike 還是 Sean。關於長期而言，或你們的（營運比率）能到哪裡。我知道你們以及你們的一些同業，過去曾經能做到 55（大概是指營運比率 55%），至少在某些季度是如此。但現在在成本通膨、新的工作規則之下——我主要是指你們的鐵路營運，如果把卡車運輸先排除在這個討論之外。

If we look at the cost inflation and work rules and the other factors that have come to play here in the current environment, do you still see your efforts? And like you mentioned, you're making great efforts on cost efficiency on service and on and on safety. Can they translate into 55 again? Or is 60 the new 55 or something else? Maybe if you could talk a little bit conceptually about that so much the top target itself, but if these are real impediments to you achieving the run rate you've had in the past?

如果我們看成本通膨、工作規則以及其他在目前環境中出現的因素，你們仍然認為你們的努力——如你提到的，你們在成本效率、服務以及安全方面都做了很大的努力——能再把它帶回到 55 嗎？而且如你所說，你們在成本效率、服務以及安全方面都做了很大的努力。它們能轉化為再次達到 55 嗎？還是說 60 變成新的 55，或是其他水準？也許你可以從概念上談談，不一定是目標數字本身，而是這些因素是否真的是你們達到過去那種運行水準的實質障礙？

Well, I'll start off, Walter and nice to hear you that you're on the call. I look no different than any other time with the margin is not what we're aiming for. We do see a pipeline in terms of efficiencies, and that's again, this is going to take time, but it's happening as we speak. We're developing supervisors to see these things, giving them the tools to be able to to relate to them better. And I see a lot of the things I saw my previous career. There's just opportunity here to connect people and activities where we get rid of waste. And that's our focus.

Walter，我先回答，也很高興聽到你在線上。我看待這件事跟以往沒有不同：我們追求的不是某個利潤率（或營運比率）數字。我們確實看到一條效率提升的管線；同樣地，這需要時間，但它正在發生。我們正在培養主管去看見這些事情，並提供他們工具，讓他們能更好地把這些事情連結起來。我看到很多我在上一段職涯中看過的做法。這裡有機會把人與活動連結起來，消除浪費。這就是我們的重點。

And I'll turn it over to my financial [friend] here.

我把問題交給我這位財務「朋友」。

Thanks, Mike. I agree. I mean, margin, obviously, as an indicator of financial health and it in our industry, it helps that helps us to understand how our efficient were running the railroad. And clearly, as we're able to grow the business as well and do that at strong incremental, that's going to help the margin. But the margin really isn't the destination. The goal is to grow earnings to grow economic profit and be disciplined around the way that we spend capital and look for opportunities to invest in things that have a high return, whether those are growth oriented projects or projects that help us to drive further efficiency gains, technology investments, capacity investments across the railroad.

謝謝，Mike。我同意。我的意思是，利潤率顯然是財務健康的指標；在我們這個產業，它有助於我們了解鐵路營運的效率。而且很明顯地，當我們能夠擴大業務規模，並以強勁的增量表現來做到，這會有助於利潤率。但利潤率本身並不是終點。目標是成長盈餘、成長經濟利潤，並在資本支出方式上保持紀律，同時尋找高報酬的投資機會——不論是成長導向的專案，或是能推動進一步效率提升的專案，包括技術投資、產能投資，遍及整個鐵路網。

That's our primary focus. We think that's the quickest surest way to grow the value of the company. And in terms of things changing versus previously, I think you make a good point in terms of the impact of inflation on the rail operating ratio, operating margin equation. That being said, I don't see any reason why we can't continue to see improvement in that metric as we expect across many other metrics in our financial performance over time. If the formula of the equation that we have going for us right now is able to continue and we've got confidence that we'll be able to do that.

那是我們的主要重點。我們認為那是最快、最確定能提升公司價值的方法。至於和過去相比有哪些改變，我想你提到通膨對鐵路營運比率、營運利潤率這個方程式的影響，確實是個好點。即便如此，我看不出有任何理由讓我們無法隨著時間推進，持續改善這個指標——就像我們預期其他許多財務績效指標也會改善一樣。如果我們目前這個有利的方程式能持續下去，而我們也有信心能做到。

So this is Joe. Last comment to add to that. I appreciate you recognizing quality carriers as part of our equation when it comes to margins. If you look at our second quarter performance, even with now accounting for scrap in the release, labour from according to our policies, even looking at he will fuel being down, we had over 39% margin in our corporate results. But if you look at the as we've said in the past, the effect of quality cares about 280 basis point effect on our total margin.

我是 Joe。最後再補充一點。我很感謝你把「優質承運人」（quality carriers）視為我們在利潤率方程式中的一部分。如果你看我們第二季的表現，即使現在在發布中把廢料（scrap）納入會計處理、並依照我們的政策處理勞務，甚至在燃油下跌的情況下，我們公司整體結果的利潤率仍超過 39%。但如同我們過去所說，「優質承運」的影響，對我們總利潤率大約有 280 個基點的影響。

So our rail operations that and if you just do that simple math, had over 41% margin in this second quarter. In a clean quarter with not a lot of exceptional things going on or like a lot of those quarters that you're referencing in the past had high fuel surcharge or had brought a demerger storage charges or even had record export coal prices and other things like that, we're at a pretty stable quarter, even with the Baltimore bridge collapse and with our rail operations, even with the inflation that we've had over the last couple of years capable of delivering that kind of performance.

所以我們的鐵路營運——如果你做個簡單的數學——在第二季的利潤率超過 41%。在一個相對乾淨的季度，沒有太多一次性事項；不像你提到過去那些季度，可能有很高的燃油附加費、或有拆併相關的倉儲費用，甚至有創紀錄的出口煤價等因素——我們這季相當穩定，即使有巴爾的摩大橋坍塌的事件；而我們的鐵路營運在過去幾年的通膨之下，仍有能力交出那樣的表現。

And as we've noted, we are optimistic about how we continue to run this as forward. We're very excited about the margin potential of this business and recognizing that that service and and our operating efficiency go hand in hand. Having said all of that, if the pursuit is just only to optimize the margin number, this industry or even this company has the potential to turn away. Good business, I mean, I think it has in the past, we had a 41%-plus percent operating margin for our rail business last quarter and a 35% margin opportunity presented itself. Do we turn it down and some, you know what our cost of capital as a whole lot lower than that. And those businesses don't have that kind of margin in really good business. And so that's was John's points very valid. We're going to grow earnings grow to cash.

而且如我們所指出的，我們對未來持續這樣營運感到樂觀。我們對這項業務的利潤率潛力非常興奮，也認知到服務與營運效率是相輔相成的。話雖如此，如果追求的只是把利潤率數字最佳化，這個產業、甚至這家公司，都可能因此拒絕掉好的業務。我的意思是，我想過去確實發生過：我們上季鐵路業務的營運利潤率是 41% 以上，但如果出現一個 35% 利潤率的機會，我們要把它拒絕嗎？而且，你知道，我們整體資本成本遠低於那個水準。而那些業務即使沒有那麼高的利潤率，也仍然是很好的業務。所以 John 的觀點非常有效。我們要成長盈餘、成長現金。

So we can return that to shareholders and reinvest in the business for profitable growth. And that's kind of way we looked at it. Efficiency matters. There's no question about sort of safety sort of the service. But the big opportunity at these margins is to create growth, profitable growth, which has strong intermodal, more incremental margins. I mean that's what we're excited about.

這樣我們才能把它回饋給股東，並再投資於業務以實現獲利性成長。這大致就是我們看待它的方式。效率很重要。毫無疑問，安全與服務也同樣重要。但在這樣的利潤率水準下，最大的機會是創造成長、創造獲利性成長；其中聯運（intermodal）具備更強的增量利潤率。我的意思是，這正是我們感到興奮的地方。

David Vernon, Sanford Bernstein.

David Vernon，Sanford Bernstein。

Hey, guys. Thanks for taking the question. John, I wanted to ask that the incremental sort of operating leverage question a little bit differently. If you look at the first half of the year, volumes are up 2% operating profit down for I know the bridges in there. But if you think about what's been missing in the equation for for operating leverage to drop down to the bottom line on that volume, what's going to change in the second half of the year?

各位好。感謝讓我提問。John，我想用稍微不同的方式來問一下「邊際」營運槓桿的問題。如果看上半年，運量成長 2%，營業利益卻下滑——我知道其中包含橋梁事件的影響。但如果從「為什麼這些運量沒有透過營運槓桿落到損益底線」的角度來看，缺少的環節是什麼？下半年會有哪些改變？

Yes. No, good question, David. If you look at the first half, I mean, I get to about $300 million of kind of a unique year-over-year challenges between the Baltimore collapse, the lower export coal pricing decline in other revenue, net fuel, that's $300 million. Second half is not going to be anywhere near that signal. Second, we will have coal pricing headwinds, but the rest is pretty clean.

是的。David，這是個好問題。如果看上半年，我們大概有約 3 億美元屬於一些相當特殊的年對年挑戰，包括巴爾的摩橋梁坍塌、出口煤炭價格走低導致其他收入下降，以及燃料淨額等，合計約 3 億美元。下半年不會再有接近這種程度的影響。其次，我們仍會面臨煤價的逆風，但其他部分相對乾淨。

And then the other thing that's different and we are in the first half of the year, we were still cycling and some of the labour additions that came on over the course of last year. So our labour productivity was negative in the first half of the year. That's going to turn positive. We've in the second half of the year on our volume growth and keeping headcount essentially flat from where we are right now. So those are the two big factors there.

另外一個不同點是：上半年我們仍在消化去年期間新增的人力所帶來的比較基期。因此，上半年我們的勞動生產力是負成長。這將轉為正成長。我們在下半年會在運量成長的同時，基本上把人頭數維持在目前水準不變。所以這兩點是主要因素。

Ravi Shanker, Morgan Stanley.

Ravi Shanker，摩根士丹利。

Thanks, everyone. So maybe also piggybacking on that operating leverage question. I mean just to kind of summarize the call a little bit into feels like a little bit of a mixed message from you guys on cycle sentiment of the one hand, you did say that the it appears the kind of inflation is kind of pushed out a little bit in the economy is a little more fragile. The other hand you are guiding to is some pretty strong operating leverage in the back half.

謝謝各位。我也想延伸剛才那個營運槓桿的問題。我試著把這通電話的重點做個總結：感覺你們對景氣循環的看法有點「訊息混合」。一方面你們提到通膨似乎在經濟中被往後推遲了一些、經濟也更脆弱；但另一方面，你們又指引下半年會有相當強的營運槓桿。

You're just trying to get a sense of how much visibility you have on that operating leverage? Because general commentary indicated that's driven a lot by volume and price and in a fragile market and have that maybe to the hard to come by, especially given some of the puts and takes on the end markets that are just trying to get a sense of how much confidence and visibility you have on that operating leverage in the back half?

我想了解的是，你們對這個營運槓桿的能見度有多高？因為一般來說這主要由運量與價格驅動；在較脆弱的市場環境下，這些可能更難取得，尤其考量終端市場有不少此消彼長的因素。我想更清楚你們對下半年營運槓桿的信心與能見度到底有多高？

There's been a lot of puts and takes. This is Sean on and on a year-to-date basis, but we're pretty much right on our plan in terms of both total volume and revenue, which is which is great. We had a stretch plan in place across the teams. And we do we've done a good job when there have been challenges, figure out ways to offset them given the good job of describing that with the Key Bridge outage in Baltimore and what we did to adjust there.

確實有很多此消彼長的因素。我是 Sean。就年初至今而言，我們在總運量與營收方面基本上都正好符合計畫，這點非常好。我們在各團隊之間設定了更具挑戰性的目標。而且當遇到挑戰時，我們也做得不錯，能找出方法去抵消影響；你提到的巴爾的摩 Key Bridge 中斷，以及我們如何調整因應，就是很好的例子。

And we think we'll be able to continue to do that as the year goes forward. And I think I think we also talked about a number of the opportunities. There are some markets that are setting up quite well for us in the second half of the year. It's not it's not guaranteed until we actually move the freight, but we've got a couple of areas of strength between Ag and food and minerals and chemicals continuing to show nice year-over-year growth. There's some headwinds and some uncertainties out there as well.

我們認為在接下來的年度進程中也能持續做到這點。我想我們也談到了一些機會。有些市場在下半年對我們來說布局相當有利。當然，在我們真正把貨運出去之前，一切都不能保證；但在農業與食品、礦產，以及化學品等領域，我們有幾個強項，持續呈現不錯的年對年成長。同時也存在一些逆風與不確定性。

So nothing's ever a given, but we're not only focused on on growing the volumes were also focused on getting the price that we need to get in the marketplace. A lot of that price for this year has already been locked in and then driving efficiency and the cost base. And we've already seen pretty significant improvements from where we entered the year to where we're exiting the first half of the year. That gives us confidence we'll be able to hold the line there into the second half.

所以沒有任何事情是理所當然的；但我們不只專注於運量成長，也專注於在市場上取得我們需要的價格。今年有相當一部分的價格其實已經鎖定；接著就是推動效率與成本基礎的改善。而且我們已經看到從年初到上半年結束，出現相當顯著的改善。這讓我們有信心在下半年也能守住這條線。

So if the macro is not as supportive and maybe we don't see as much growth as we expect, well, we still be able to deliver margin improvement in the I think we will.

所以如果總體環境沒有那麼支持、也許成長不如我們預期，我們仍能交出利潤率改善嗎？我認為可以。

Jeff Kauffman, Vertical Research.

Jeff Kauffman，Vertical Research。

Thank you very much for squeezing me in. Mike, just a quick question. You talked about some excess capacity actually might have been. Kevin had mentioned that we have plenty of capacity on the line, and I noticed that the well was up a little bit. So I guess my question is, are there opportunities you said you're testing the railroad here and they're seeing what it can do to run with fewer locomotives or fewer cars or maybe technology can help you drive efficiency on the asset side.

非常感謝讓我插進來提問。Mike，我有個簡短問題。你提到一些超額產能，可能其實是——Kevin 也提到我們在線路上有充足的產能，而我注意到（某項指標）略有上升。所以我的問題是：你們是否看到一些機會？你說你們正在「測試」這條鐵路，看看在更少的機車、更少的車輛下能跑到什麼程度，或是科技是否能幫助你們在資產端提升效率。

I'm not talking so much about the people side here because you mentioned that earlier. But I was just kind of wondering because cars online were up about 3,000 cars sequentially. I don't know if that seasonal or not, but what kinds of opportunities do you see for improved asset utilization on the rail?

我不是在談人力端，因為你們先前已經提過。但我在想，因為在線車輛數量環比增加了大約 3,000 輛。我不確定那是不是季節性因素，但你們在鐵路資產利用率提升方面，看到了哪些機會？

Thanks, Jeff. Just to clarify, what I've been speaking about before was in intermodal shift. So obviously the heat and I'm speaking specifically about season in our intermodal trains and the capacity that we have in that network. But everything you you've talked about, the answer is yes, to be one to run with fewer locomotives. Will there be technology that enhances what it is? We're doing?

謝謝你，Jeff。先澄清一下，我之前談的是聯運（intermodal）的轉移。所以很明顯地，我指的是我們聯運列車的旺季，以及我們在該網路中的產能。但你提到的那些，答案都是肯定的：是否能用更少的機車來運行？是否會有科技來強化我們正在做的事情？我們會嗎？

Absolutely. The biggest thing we're focused on right now is outside of outside of the day-to-day, sweeping the corners, making sure people understand what the standards are and how to go about achieving them further looking at infrastructure that we have. And so there's some opportunities to reduce out of route miles reduced a lot of handlings essentially create mass where we don't have it today. This railroad has customers everywhere versus it being linear, where you can accumulate all your traffic, you switch it out and it runs.

絕對會。我們目前最專注的一件事是：除了日常營運、把邊邊角角都掃乾淨、確保大家理解標準並知道如何達成之外，我們也在更深入檢視我們現有的基礎設施。因此有一些機會可以降低繞行里程、減少大量的裝卸/處理次數，基本上是在目前沒有形成「貨量聚集（mass）」的地方創造聚集。這條鐵路的客戶分布在各處，而不是線性走廊那種模式——在那種模式下你可以把所有貨量集中起來、編組後就一路運行。

So we're going to try, John's going to try. We are looking at our network to see areas where we can bring and create mass in certain places and eliminate all those touches that we do. We do a lot of work online and road with trains block swapping because we just don't have the mass at the at the origin terminal. So there's opportunities there. And at our in our Investor Day or when we get together will lay out a far more than just me talking, but it will show you what we're talking about there.

所以我們會嘗試，John 也會嘗試。我們正在檢視網路，找出哪些區域可以把貨量導入並在特定地點形成聚集，進而消除我們目前做的所有那些「觸點」（處理/轉運）。我們在線上與途中做了很多工作，例如列車的分組交換（block swapping），因為在起始場站我們就是沒有足夠的貨量聚集。所以那裡有機會。而在我們的投資人日，或我們再次聚在一起時，我們會用更完整的方式呈現——不只是我口頭描述——讓你看到我們在談什麼。

Thank you. No further questions. This concludes our Q&A session and conference call. You may now disconnect.

謝謝。沒有其他問題。本次問答環節與電話會議到此結束。您現在可以掛線。