Norfolk Southern Corp (NSC) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Norfolk Southern second-quarter 2024 earnings call. (Operator Instructions) This call is being recorded on Thursday, July 25, 2024. I would now like to turn the conference over to Luke Nichols, Senior Director of Investor Relations. Luke, please go ahead.

女士們、先生們，下午好，歡迎參加諾福克南方航空 2024 年第二季財報電話會議。 （操作員說明）本次電話會議於 2024 年 7 月 25 日星期四進行錄音。盧克，請繼續。

Thank you, and good afternoon, everyone. Please note that during today's call, we will make certain forward-looking statements within the meaning of the safe harbor provision of the Private Security and Litigation Reform Act of 1995. These statements relate to future events or future performance of Norfolk Southern Corporation which are subject to risks and uncertainties and may differ materially from actual results. Please refer to our annual and quarterly reports filed with the SEC.

謝謝大家，大家下午好。請注意，在今天的電話會議中，我們將根據1995 年《私人安全和訴訟改革法案》的安全港條款做出某些前瞻性陳述。這些陳述受到風險和不確定性，可能與實際結果有重大差異。請參閱我們向 SEC 提交的年度和季度報告。

Our presentation slides are available at norfolksouthern.com in the investor section, along with our reconciliation of any non-GAAP measures used today to the comparable GAAP measures, including adjusted or non-GAAP operating ratio. Please note that all references to our prospective operating ratio during today's call are being provided on an adjusted basis as referenced in our earnings release.

我們的簡報投影片可在norfolksouthern.com 的投資者部分中找到，以及我們今天使用的任何非公認會計準則衡量指標與可比較公認會計準則衡量指標的對賬，包括調整後或非公認會計準則營運比率。請注意，今天電話會議期間對我們預期營運比率的所有引用都是在我們的收益發布中引用的調整後的基礎上提供的。

Turning to slide 3, it's now my pleasure to introduce Norfolk Southern's President and Chief Executive Officer, Alan Shaw.

轉向幻燈片 3，現在我很高興介紹諾福克南方航空的總裁兼首席執行官艾倫·肖 (Alan Shaw)。

Thank you, Luke, and thank you everyone for joining us. Here with me today are John Orr, our Chief Operating Officer; Ed Elkins, our Chief Marketing Officer; and Mark George, our Chief Financial Officer.

謝謝你，盧克，也謝謝大家加入我們。今天和我在一起的是我們的營運長約翰·奧爾 (John Orr)； Ed Elkins，我們的行銷長；和我們的財務長馬克喬治。

Earlier, we reported our second-quarter financial results. including adjusted operating income of $1.1 billion, net income of $694 million, and diluted earnings per share of $3.06. Notably, we delivered 480 basis points, a sequential margin improvement on our adjusted operating ratio. OR was 65.1% in the second quarter, with a first-half OR of 67.5%, making good on our commitment to our shareholders to a first half operating ratio in the range of 67 to 68%. Our strong progress over this quarter demonstrates our ability to close the gap to our peers by executing our balanced strategy of service, productivity, and growth with safety at its core.

早些時候，我們報告了第二季的財務表現。其中調整後營業收入為 11 億美元，淨利為 6.94 億美元，稀釋後每股收益為 3.06 美元。值得注意的是，我們實現了 480 個基點，調整後的營業比率較上季提高了利潤率。第二季的 OR 為 65.1%，上半年的 OR 為 67.5%，兌現了我們對股東的承諾，即上半年營業比率在 67% 至 68% 範圍內。我們本季的強勁進展表明，我們有能力透過執行以安全為核心的服務、生產力和成長的平衡策略來縮小與同行的差距。

The thoroughbred team delivered significant margin improvement in the quarter despite revenue headwinds by accelerating productivity initiatives. As you will hear from John, Ed, and Mark, we were able to overcome market weakness through increasingly strong progress on our six key operational metrics by responding to market opportunities and growing volume and remaining laser focused on controlling costs.

儘管營收面臨阻力，但該純種團隊透過加快生產力計劃，在本季度實現了利潤率的顯著提高。正如約翰、艾德和馬克所說，我們透過響應市場機會和不斷增長的銷售並繼續專注於控製成本，在六項關鍵營運指標上取得越來越強勁的進展，從而克服了市場的疲軟。

We also take seriously our commitment to being the gold standard of safety in the industry and continue to make progress on improving our safety culture and metrics. This is the strength of our strategy, driving operational excellence and discipline that will deliver and will continue to deliver productivity gains and create the foundation to onboard significant growth when the market returns. This is the flywheel effect that is delivering tangible benefits for customers and shareholders.

我們也認真對待成為行業安全黃金標準的承諾，並繼續在改善我們的安全文化和指標方面取得進展。這是我們策略的優勢，推動卓越營運和紀律，將並將繼續提高生產力，並為市場回歸時的顯著成長奠定基礎。這就是飛輪效應，為客戶和股東帶來實際的利益。

Efficient operations with a compelling service product allowed our teams to gain share in service-sensitive markets, such as auto and intermodal, while participating in spot opportunities in coal and agriculture. As a result, we posted record performance in several key merchandise measures. While our work continues, our second-quarter results represent an encouraging inflection point in our operating performance.

憑藉引人注目的服務產品進行高效運營，使我們的團隊能夠在汽車和多式聯運等服務敏感市場中獲得份額，同時參與煤炭和農業領域的現貨機會。因此，我們在幾個關鍵商品指標上取得了創紀錄的業績。在我們的工作持續進行的同時，我們的第二季業績代表了我們經營業績的一個令人鼓舞的轉折點。

We have plenty of runway in front of us. I'm excited for Norfolk Southern's opportunities ahead. We're committed to our strategy and delivering the results with pace and urgency that demonstrate the power of a better way for our employees, customers, communities, and shareholders. I'll now turn it over to John to further discuss our operational progress.

我們面前有足夠的跑道。我對諾福克南方航空未來的機會感到興奮。我們致力於我們的策略，並快速、緊迫地交付成果，為我們的員工、客戶、社區和股東展示更好的方式的力量。現在我將把它交給約翰進一步討論我們的營運進度。

Thank you, Alan. It's a pleasure to provide an update on our progress. Turning to slide 5. At NS, safety enables performance, and our commitment to safety is unwavering. During the quarter, we leveraged our NS leadership framework to strengthen our field safety. We continued our efforts to focus on mainline accident reductions, and we commissioned three additional inspection portals and added field sensors. These have contributed to our best-in-class mainline accident rate. We also conducted two cross-functional leadership safety summits, strengthening our capabilities and reinforcing safety from the ballast to the boardroom.

謝謝你，艾倫。很高興提供有關我們進展的最新資訊。轉向投影片 5。本季度，我們利用 NS 領導框架來加強我們的現場安全。我們繼續努力減少幹線事故，並委託安裝了三個額外的檢查端口並添加了現場感測器。這些因素使我們的幹線事故率達到了同類最佳水平。我們也舉辦了兩次跨職能領導安全高峰會，增強了我們的能力並加強了從鎮流器到董事會的安全。

Turning to slide 5, Our metrics improved across all of our core network performance indices. Our balanced approach proved safety, service, and cost improvements work best together. Year to date, we have reduced our active online motor power fleet by 320 locomotives and have targeted an additional 100 reductions in the second half.

轉向投影片 5，我們的所有核心網路效能指數指標均有所改善。事實證明，我們的平衡方法將安全、服務和成本改進結合在一起效果最佳。今年迄今為止，我們已將活躍的線上電機動力車隊減少了 320 台機車，並計劃在下半年再減少 100 台機車。

As we store locomotives, we use reliability metrics to remove the worst performers driving up overall fleet reliability, and driving down maintenance, materials, and fuel expense. Quarter over quarter, we increased our GTMs for available horsepower by 6% and our car velocity by 6%. Both improvements are the result of design processes that drive out time and cost, both in terminals and over the road.

當我們儲存機車時，我們使用可靠性指標來剔除表現最差的機車，從而提高整體機車可靠性，並降低維護、材料和燃料費用。每個季度，我們的 GTM 可用馬力增加了 6%，汽車速度增加了 6%。這兩項改進都是設計流程的結果，無論是在航站樓還是在路上，都節省了時間和成本。

Our strategy includes structural improvements in fuel procurement, materials management, purchase service optimization, crew cost efficiency, and productivity enhancements. So let's take a look at a few of the initiatives in the pipeline that are closing the gap as we track for the $250 million cost takeout commitment.

我們的策略包括燃料採購、材料管理、採購服務優化、船員成本效率和生產力提高方面的結構改進。因此，在我們追蹤 2.5 億美元的成本支出承諾時，讓我們來看看正在醞釀中的一些正在縮小差距的舉措。

Turning to slide 7. We have delivered a 6% improvement in car velocity by reducing handlings, extending train schedules, and improving connection performance. Car velocity is something I monitor closely. It captures improvements in our operating plan, terminal execution, and over-the-road performance. For example, during the quarter, we eliminated over 700 unnecessary car handlings per day.

轉向幻燈片 7。我密切監視汽車速度。它體現了我們的營運計劃、終端執行和公路性能方面的改進。例如，在本季度，我們每天消除了 700 多次不必要的汽車處理。

Driving car velocity in response to overall train speed improvements includes working with our customers to right-size the inventory in their pipelines. As train speed and car velocity improve, fewer cars are required to service the current volume. In the quarter, we've delivered a reduction of 3% of cars online.

提高汽車速度以響應整體列車速度的提高包括與我們的客戶合作，調整其管道中的庫存規模。隨著火車速度和汽車速度的提高，滿足目前運量所需的汽車數量會減少。本季度，我們在線上交付的汽車數量減少了 3%。

We are improving safety, train speed, and service reliability by addressing unscheduled train stops and dispatching practices. For example, our mechanical war rooms root cause analysis of every unscheduled train stop has resulted in 18% reduction of these unscheduled stops in Q2.

我們透過解決非計劃列車停靠和調度問題來提高安全性、列車速度和服務可靠性。例如，我們的機械作戰室對每個計畫外列車停靠站進行根本原因分析，導致第二季這些計畫外停靠站數量減少了 18%。

We have a new network operations watchdog team bringing extreme discipline to planned adherence. They challenge the root cause for every extra train. This has instilled network wide visibility and accountability to execution and planning. I'm really encouraged that this has increased connections and train yield and has driven out extra train starts from 200 in March to just 50 in June.

我們有一個新的網路運營監管團隊，對計劃的遵守實行嚴格的紀律。他們挑戰每趟額外列車的根本原因。這為執行和規劃注入了網路範圍內的可見性和責任感。我真的很受鼓舞，因為這增加了連接數和火車產量，並減少了額外的火車出發次數，從 3 月份的 200 趟減少到 6 月份的 50 趟。

These improvements to our operating plan and terminal discipline have resulted in a 4% reduction in crew starts. The combination of crew and overtime reductions has dropped our crew expense per KGTM by 8% compared to Q1.

我們對營運計劃和碼頭紀律的這些改進使船員開工率減少了 4%。與第一季相比，船員和加班費的減少使我們每 KGTM 的船員費用下降了 8%。

As operational effectiveness grows, we are recalibrating our standards and sweating the network resources even further. This is the path to at least 7 to 10% improvement in car velocity. Yard and local redesigns are underway. We are driving out waste and rework in the first mile and last mile operations.

隨著營運效率的提高，我們正在重新調整我們的標準，並進一步消耗網路資源。這是使汽車速度至少提高 7% 到 10% 的途徑。庭院和局部的重新設計正在進行中。我們正在消除第一英里和最後一英里運營中的浪費和返工。

We are unlocking the capacity to take on additional work within the same footprint. Efficiency in this space is really important to me, since we allocate approximately 50% of crew starts here.

我們正在釋放在相同佔地面積內承擔額外工作的能力。這個空間的效率對我來說非常重要，因為我們分配了大約 50% 的工作人員從這裡開始。

Over the next 24 months, we will continue to improve fuel productivity. We will continue to push locomotives, leverage trip optimizer to assertively manage horsepower per ton. turn power more quickly, improve fuel distribution and vendor accountability, and increase train size. We are targeting locomotive productivity improvements of an additional 8%.

未來 24 個月，我們將持續提高燃油效率。我們將繼續推動機車，利用行程優化器來自信地管理每噸馬力。更快提供動力，改善燃料分配和供應商責任，並增加列車規模。我們的目標是將機車生產率再提高 8%。

One of my personal objectives is to develop the next generation of skilled PSR railroaders and to build the bench strength to sustain the improvements that I'm leading. We are structuring the organization to drive the daily and strategic outcomes, and I am proud and encouraged by the engagement of the people in every department and across the entire organization.

我個人的目標之一是培養下一代熟練的 PSR 鐵路工人，並增強後備力量以維持我所領導的改進。我們正在建立組織以推動日常和策略成果，每個部門和整個組織的員工的參與讓我感到自豪和鼓舞。

The team is working collaboratively and with confidence. Our team is energized and motivated to build upon the strength of the quarter and deliver the next wave of initiatives that will yield savings in all P&L categories beyond just comp and bend, but in materials, rents, and purchase services.

該團隊正在充滿信心地協作工作。我們的團隊充滿活力和動力，以本季的優勢為基礎，實施下一波舉措，這些舉措將在所有損益類別中實現節省，而不僅僅是補償和彎曲，還包括材料、租金和採購服務。

Success breeds success. I want to close out my remarks on slide 8 and 9 with two flywheel examples of balancing service and cost. In automotive, our car velocity increased by 16%, creating the platform for growth, as our carloads increased by 7%. Within intermodal, shipments and service performance simultaneously increased by 8%. This following the 15% lane rationalization we discussed earlier this quarter.

成功孕育成功。我想用平衡服務和成本的兩個飛輪範例來結束我對投影片 8 和 9 的評論。在汽車領域，我們的汽車速度增加了 16%，為成長創造了平台，我們的車輛裝載量增加了 7%。在多式聯運中，出貨量和服務績效同時成長了 8%。這是繼我們本季早些時候討論的 15% 車道合理化之後的結果。

And what's really important to me is that we are launching our NS intermodal reservation system in September. This smooths train demand, reduces rents and expenses, and creates service certainty. Our customers are enjoying some of the best sustained service ever.

對我來說真正重要的是，我們將於 9 月推出 NS 聯運預訂系統。這可以平滑列車需求，降低租金和費用，並創造服務確定性。我們的客戶正在享受有史以來最好的持續服務。

At the same time, we have consolidated train starts, streamlined our service plan, reduced handling complexity, and have driven out cost. We are unlocking tremendous value within our franchise, adding new capability, urgently eliminating waste, and driving to a sub-60% OR.

同時，我們整合了列車開行，簡化了服務計劃，降低了處理複雜性，並降低了成本。我們正在釋放我們的特許經營權的巨大價值，增加新功能，緊急消除浪費，並推動 OR 低於 60%。

Now I'll turn it over to Ed.

現在我會把它交給艾德。

Hey, thank you, John, and good afternoon to everyone on the call. Let's go to slide 11, and I'll review our commercial results for the second quarter.

嘿，謝謝你，約翰，祝所有參加電話會議的人下午好。讓我們轉到投影片 11，我將回顧第二季的商業表現。

Overall results were driven by notably more fluid network that delivered a better service product to our customers. Revenues came in just above $3 billion, a 2% increase versus last year. Volumes rose 5% led by an 8% increase in intermodal while RPU fell 3% driven by unfavorable impacts from interval mix. Merchandise revenue improved 4% while volumes increased 2% and RPU rose 3%.

整體結果是由更流暢的網路推動的，該網路為我們的客戶提供了更好的服務產品。營收略高於 30 億美元，比去年成長 2%。多式聯運成長 8%，帶動量成長 5%，而由於區間組合的不利影響，RPU 下降 3%。商品收入成長 4%，銷量成長 2%，RPU 成長 3%。

RPU less fuel increased 4% versus last year, which once again set an all-time record alongside a new all-time record for revenue less fuel. This marks the 36th out of the prior 37 quarters where merchandised RPU less fuel grew year over year. In intermodal, revenue was flat, volume increased 8%, and RPU declined 8%. And in coal, revenue declined 3% on a 2% volume decrease.

RPU 減去燃油比去年增加了 4%，再次創下了歷史記錄，同時也創下了收入減去燃油的新歷史記錄。這是過去 37 個季度中商品 RPU 較少燃料年增長的第 36 個季度。在多式聯運方面，營收持平，成交量成長 8%，RPU 下降 8%。煤炭方面，收入下降 3%，銷量下降 2%。

Now these were impacted by the outage of the Francis Scott Key Bridge in Baltimore. I do want to take a second here to reflect on coal's performance in the face of extraordinary challenges around the unprecedented closure of the Baltimore Port Complex in April. We and our customers demonstrated extraordinary operational agility and creativity to keep global supply chains intact via Lambers Point, Virginia, until service was restored in Baltimore.

現在，這些受到巴爾的摩弗朗西斯斯科特基大橋停駛的影響。我確實想在這裡花一點時間思考一下煤炭在面對四月份巴爾的摩港口綜合體史無前例的關閉所帶來的巨大挑戰時的表現。我們和我們的客戶展示了非凡的營運敏捷性和創造力，以保持經由維吉尼亞州蘭伯斯角的全球供應鏈完好無損，直到巴爾的摩的服務恢復。

I'll note that propelling our record, Merchandise Less Fuel in a Quarter, was our automotive book, which set a record for total revenue and RPU less fuel. Metals, which achieved an all-time quarterly record in revenue less fuel, and chemicals, which marked an all-time record for RPU less fuel. Intermodal revenue was flat in the quarter.

我要指出的是，推動我們記錄的《一個季度商品減少燃料》是我們的汽車書籍，它創下了總收入和 RPU 減少燃料的記錄。金屬產業創下了扣除燃料收入的歷史季度記錄，而化學品則創下了扣除燃料 RPU 的歷史記錄。本季多式聯運營收持平。

However, if we exclude pressure from fuel and storage charges, revenues grew by 2% despite the mix in price headwinds. All of these superlatives are supported by the strong service product that John and his team are delivering.

然而，如果我們排除燃料和倉儲費用的壓力，儘管存在價格不利因素，收入仍增加了 2%。所有這些最高級的內容都得到了約翰和他的團隊提供的強大服務產品的支持。

Let's turn to slide 12 and review our outlook for the rest of '24. We're lowering our expectations for full-year revenue growth to around 1% based on continuing market cost currents, and we expect overall adverse mixed headwinds to continue. In merchandise, new industrial activity may be constrained by higher interest rates and borrowing costs, but we expect to see continued benefits from ongoing infrastructure and manufacturing projects underway.

讓我們轉向投影片 12，回顧我們對 24 年剩餘時間的展望。基於持續的市場成本現狀，我們將全年營收成長預期下調至 1% 左右，並且我們預期整體不利的混合阻力將持續存在。在商品方面，新的工業活動可能會受到利率和借貸成本上升的限制，但我們預計正在進行的基礎設施和製造項目將持續帶來好處。

Our improved network fluidity will also deliver growth and unlock shareholder value. Intermodal volumes remain a driver of overall volume growth as international shipments rise through import and export demand, while excess capacity and weak truck prices are expected to remain headwinds to domestic volumes. And finally, in coal, we foresee a challenged environment within the utility space continuing. while export markets see some momentum from the reopening of the Baltimore Channel and new production.

我們改進的網路流動性也將帶來成長並釋放股東價值。由於進出口需求導致國際貨運量增加，多式聯運量仍然是總體量增長的推動力，而運力過剩和卡車價格疲軟預計仍將阻礙國內量的增長。最後，在煤炭領域，我們預計公用事業領域的充滿挑戰的環境將持續下去。而出口市場則因巴爾的摩海峽的重新開放和新的生產而看到了一些動力。

All right, let's finish up on slide 13. I'm going to take a minute to highlight a recent win-win with a large met coal producer in the US. Set to be developed in 2025, our rail lines will link this new coal production facility with the global market. This mine will produce nearly 5 million short tons of premium-grade met coal annually when it reaches full production.

好吧，讓我們結束投影片 13。我們的鐵路線將於 2025 年開發，將把這個新的煤炭生產設施與全球市場連接起來。該礦產達產後，每年將生產近500萬短噸優質冶金煤。

This new partnership is a concrete example of our strategy to grow high-quality carload revenue, close the gap to peers in key markets, and significantly enhance our met coal portfolio for years and years to come. This one also demonstrates our customers' confidence in Norfolk Southern, in our service, and our commitment to our strategy. We're grateful to be chosen for this project, and we're excited for the future of this opportunity.

這項新的合作關係是我們策略的一個具體例子，該策略旨在增加高品質的整車收入，縮小與主要市場同行的差距，並在未來幾年顯著增強我們的冶金煤產品組合。這也顯示了我們的客戶對諾福克南方航空、我們的服務以及我們對策略的承諾的信心。我們很高興被選中參與這個項目，並且對這個機會的未來感到興奮。

Investing strategic capital to support regions of our network with economic growth is also in motion. The state of Alabama is an example where our investments include terminal and mainline infrastructure projects that support customers as they invest and expand their businesses. These investments are a key part of our balanced approach to deliver top-tier revenue growth over the long term. And finally, I just want to thank our customers for their partnership and for their business.

投資策略資本以支持我們網路區域的經濟成長也在進行中。阿拉巴馬州就是一個例子，我們的投資包括終端和乾線基礎設施項目，為客戶投資和擴展業務提供支援。這些投資是我們實現長期頂級收入成長的平衡方法的關鍵部分。最後，我只想感謝我們的客戶的合作夥伴關係和業務。

I'll now turn it over to Mark to cover our financial results.

現在我將把它交給馬克來報道我們的財務表現。

Thanks, Ed, and good afternoon, everyone. Let's start on slide 15 with a quick reconciliation of GAAP results on the left and the adjusted results on the right. You'll see that the Eastern Ohio incident column is actually income in the quarter of $65 million, as our $156 million of insurance recoveries exceeded the additional costs that were accrued.

謝謝艾德，大家下午好。讓我們從第 15 張投影片開始，左側是 GAAP 結果的快速核對，右側是調整後的結果。您會看到，俄亥俄州東部事故一欄實際上是本季的收入 6,500 萬美元，因為我們 1.56 億美元的保險賠償超過了應計的額外成本。

In the restructuring column, you will also see income as we booked a favorable true-up to our Q1 separation cost accruals, but also realized an associated favorable post-retirement curtailment adjustment within our other income line item. We also highlight, under the advisory cost column, expenses incurred in Q2 associated with the proxy contest. Adjusted results, including a 65.1% OR, was in line with our guidance range. EPS of $3.06 was aided by $0.05 below the line from a favorable state income tax adjustment.

在重組欄中，您還會看到收入，因為我們對第一季的應計離職成本進行了有利的調整，但也在我們的其他收入項目中實現了相關的有利的退休後縮減調整。我們也在諮詢成本一欄下強調了第二季與代理商競爭相關的費用。調整後的結果（包括 65.1% OR）符合我們的指導範圍。每股收益為 3.06 美元，得益於有利的州所得稅調整，線下 0.05 美元。

On the next chart, slide 16, I'll go through the year-over-year and sequential variances compared to the adjusted results. Our second-quarter performance was a function of a dose of revenue lift combined with the team making excellent progress on network performance and providing strong service that enabled us to remove costs from our structure. Year-over-year revenue was up $64 million, or 2%, with volumes up 5%, but RPU was down 3%.

在下一張圖表（投影片 16）中，我將介紹與調整後結果相比的同比差異和連續差異。我們第二季的業績是營收提升的結果，加上團隊在網路效能方面取得了巨大進步，並提供了強大的服務，使我們能夠從結構中消除成本。營收年增 6,400 萬美元，即 2%，銷量成長 5%，但 RPU 下降 3%。

As I discussed, adverse mix remained a headwind to RPU in the quarter. Operating expenses were down $7 million year-over-year despite inflation headwinds, reflecting strong momentum on cost takeout, which drove 160 basis points of OR improvement. The cost reduction momentum is especially evident when looking at the sequential decline of $119 million or 6% on $40 million more revenue combining to drive up a large 480 basis point sequential reduction in our operating ratio and will most certainly result in a sharp narrowing of the OR gap with the industry.

正如我所討論的，不利的組合仍然是本季度 RPU 的阻力。儘管通膨逆風，營運支出仍年減 700 萬美元，反映出成本削減勢頭強勁，推動 OR 改善 160 個基點。當收入增加 4,000 萬美元的情況下環比下降 1.19 億美元或 6% 時，成本削減勢頭尤其明顯，這導致我們的運營比率環比大幅下降 480 個基點，並且肯定會導致運營比率大幅收窄。同行業的差距。

Drilling into the revenue change on slide 17, focusing here on the sequential increase in revenue from Q1 of $40 million That was driven by merchandise volume growth. Yet despite what appears as a favorable mix shift at the high level, with a 2% rise in merchandise volume, RPU to Q1 was only flat. And that's because mix within each business line was adverse, as you'll see illustrated in the gray box, where volume growth of below-average RPU business lines exceeded volume growth in the above-average business lines.

深入研究幻燈片 17 上的收入變化，重點關注第一季收入環比增長 4000 萬美元，這是由商品銷售增長推動的。然而，儘管高層出現了有利的組合轉變，商品數量增加了 2%，但第一季的 RPU 卻持平。這是因為每個業務線內的混合是不利的，正如您將在灰色框中看到的那樣，低於平均水平的 RPU 業務線的銷量增長超過了高於平均水平的業務線的銷量增長。

Shifting to a sequential look at operating expense on slide 18, I'll start by saying it's nice to see all green on this chart. OPEX is down $119 million versus the first quarter. The dramatic acceleration in our network velocity has allowed us to drive out the remaining service mitigation costs in the quarter, which shows up in several categories, including comp and bend, most notably overtime, but also in equipment rents, purchase services, as well as other.

轉向幻燈片 18 上營運費用的順序查看，我首先要說的是，很高興看到該圖表上的所有內容都是綠色的。營運支出較第一季下降 1.19 億美元。網路速度的急劇加快使我們能夠消除本季度剩餘的服務緩解成本，這些成本體現在幾個類別中，包括補償和彎曲，最顯著的是加班費，但也體現在設備租賃、購買服務以及其他。

The ops team did a terrific job speeding up the network and improving service to deliver on these cost savings, as well as fuel efficiency improvements. You'll also see savings in the comp and bend from lower employee levels, largely driven from the previously announced downsizing actions that we took in our management ranks, but also sequential attrition of nearly 2% of our T&E workforce.

營運團隊在加快網路速度和改善服務方面做得非常出色，從而節省了成本並提高了燃油效率。您還將看到較低員工等級帶來的薪酬和彎曲節省，這主要是由於我們先前宣布的管理層裁員行動，以及我們近 2% 的 T&E 員工的連續流失。

Property gains in the second quarter totaled $25 million compared to zero in Q1, so the first half is pretty much on a normal annual run rate. Real estate transactions are lumpy, and some of you may say that the $25 million in the quarter was 2x a theoretically smoothed amount, but either way you choose to evaluate our results, our OR performance in the quarter was in line with our commitment. So we are very encouraged at what is clearly an inflection point in our cost structure. allowing us to meet the commitment we made on OR despite a weaker volume environment than we had been planning for, demonstrating organizational agility.

第二季的房地產收益總計為 2,500 萬美元，而第一季為零，因此上半年幾乎處於正常的年度運行速度。房地產交易波動較大，有些人可能會說本季的2,500 萬美元是理論上平滑金額的2 倍，但無論您選擇以哪種方式評估我們的結果，我們本季的OR 業績都符合我們的承諾。因此，我們的成本結構明顯出現了轉折點，我們對此感到非常鼓舞。儘管數量環境比我們計劃的要弱，但它使我們能夠履行對 OR 所做的承諾，展現了組織敏捷性。

As we look to the second half, there are various headwinds and tailwinds to consider. Ed noted that the revenue will be softer than we previously expected, with some sequential volume improvement, but adverse mix. And the industry's next contractual wage increase that took effect on July 1 creates a $25 million step up in comp and bend here in the third quarter.

當我們展望下半年時，有各種逆風和順風需要考慮。艾德指出，營收將比我們先前的預期疲軟，銷量將有所改善，但混合情況不利。該行業的下一次合約薪資成長於 7 月 1 日生效，使第三季的薪資和彎曲增加了 2500 萬美元。

However, John talked about our actions and momentum on productivity side within operations, and that will help neutralize the wage impact. All that said, the key message I want to leave you with today is that despite softer macro conditions, we are reaffirming our guidance for the second half operating ratio in the 64% to 65% range.

然而，約翰談到了我們在營運中生產力方面的行動和勢頭，這將有助於抵消工資影響。話雖如此，我今天想留給大家的關鍵訊息是，儘管宏觀環境較為疲軟，我們仍重申下半年營運比率在 64% 至 65% 範圍內的指導。

Before I hand to Alan, I'll make a comment on capital. Many of you have seen that with PSR, there is often a liberation of excess capital assets. That boosts efficiency and creates incremental cash flow streams, adding to shareholder returns. We've had some of those in the past several years with some larger asset sales, and we continue to evaluate opportunities and have a robust list of properties for which we are pursuing sales that will simplify our network and generate cash over the next several quarters.

在向艾倫發言之前，我將對資本發表評論。你們中的許多人都已經看到，透過 PSR，通常可以釋放多餘的資本資產。這提高了效率並創造了增量現金流，增加了股東回報。在過去的幾年裡，我們已經進行了一些規模較大的資產銷售，我們將繼續評估機會，並擁有強大的房產清單，我們正在尋求銷售，這將簡化我們的網絡並在未來幾個季度產生現金。

Thanks, Mark. Let's turn to slide 20. As you heard from Ed, we lowered our full-year revenue guidance from approximately 3% to approximately 1% growth. And you heard from John and Mark that we're overcoming the revenue drop with a focus on the significant productivity opportunities in front of us, which gives us the confidence in reaffirming our full-year OR guidance despite the lower revenue outlook. The momentum demonstrated in the second quarter is a testament to the strength of our strategy.

謝謝，馬克。讓我們轉向幻燈片 20。您從約翰和馬克那裡聽說，我們正在克服收入下降的問題，重點關注我們面前的重大生產力機會，這讓我們有信心重申我們的全年 OR 指導，儘管收入前景較低。第二季所展現的勢頭證明了我們策略的力量。

I want to thank all 20,000 of my Norfolk Southern teammates for all they have done and are doing every single day to deliver on our shareholder commitments and accelerate our operational improvements. John, Ed, and Mark have identified specific actions and outcomes to deliver improved results and workforce, T&E, fuel, mechanical, purchase services and rents, and capital productivity, as well as smart growth in merchandise, intermodal, and coal.

我要感謝諾福克南方航空的 20,000 名隊友，感謝他們為履行我們的股東承諾和加速我們的營運改進所做的一切和每天正在做的一切。約翰、艾德和馬克確定了具體行動和成果，以改善績效和勞動力、差旅費、燃料、機械、採購服務和租金、資本生產力，以及商品、聯運和煤炭的智慧成長。

We have a clear line of sight on multiple initiatives and a roadmap for margin gains in several key areas over the next 18 months as we close the OR gap. I'm proud of our progress in the second quarter encouraged by our trajectory, and confident in our team's ability to execute and deliver results in the quarters ahead.

隨著我們縮小 OR 差距，我們對未來 18 個月內多個關鍵領域的利潤成長有了清晰的願景和路線圖。我對我們在第二季度取得的進展感到自豪，並對我們團隊在未來幾季執行和交付成果的能力充滿信心。

We will now open the call to questions. Operator?

我們現在開始提問。操作員？

(Operator Instructions) Tom Wadewitz, UBS.

（操作員說明）Tom Wadewitz，UBS。

Yeah, good afternoon. Ed, you highlighted down a number of the yield ex fuel records and the performance in merchandise. So I wanted to ask you about intermodal yield. Are we seeing intermodal yields at a bottom, or are there potential drivers that they go down further? And how do you think about the opportunity and the timing to see stronger pricing and revenue per unit in the intermodal business?

是的，下午好。艾德，您強調了一些不含燃料的產量記錄和產品表現。所以我想問你關於多式聯運收益率的問題。我們是否看到多式聯運收益率觸底，或者是否有進一步下降的潛在驅動因素？您如何看待多式聯運業務中看到更強勁的定價和單位收入的機會和時機？

Thank you, man. Let me walk you through really the price and mix story in Intermodal. Mix and price make up around six of the seven points in weakness that you saw there. And that mix is really driven in the premium segment where lower parcel counts are really pressuring our carriers to keep their unionized road fleets employed. The other mixed piece is we're seeing a lot of empty shipments.

謝謝你，兄弟。讓我向您詳細介紹多式聯運的價格和組合故事。混合和價格構成了您在那裡看到的七個弱點中的大約六個。這種混合確實是在高端市場推動的，其中包裹數量的減少確實迫使我們的承運人繼續僱用其工會公路車隊。另一個好壞參半的是我們看到大量空運。

On the Intermodal side, we're seeing them and have seen them really all year long. in the intermodal segment, or excuse me, in the international segment, where carriers are really trying to push empties back offshore. We're also starting to see a lot more domestic empty repositioning moves back to the West Coast. We think that's in anticipation of possible ILA action on East Coast ports there.

在多式聯運方面，我們看到了它們，而且全年都在見到它們。在多式聯運領域，或者對不起，在國際領域，承運商確實試圖將空箱推回海外。我們也開始看到更多的國內空置重新定位回到西海岸。我們認為這是預計國際勞工組織可能對那裡的東海岸港口採取行動。

And then the second part of your question is when does the highway rates get better, and when do we start to see some of the capacity drop out from the highway carriers that are putting a lot of pressure on rates? I think we're around the bottom. I really do.

那麼你問題的第二部分是高速公路費率什麼時候會變得更好，我們什麼時候開始看到對費率施加很大壓力的高速公路運營商的一些運力下降？我認為我們已經接近底部了。我真的這麼做。

From what I see, from what I read, and from what I hear from our customers, we're kind of bouncing right along the bottom. And I think we're getting closer and closer to an inflection point. Talking to one of our biggest customers today, They noted that they're expecting a real peak season this year for the first time in a few years. And I think that bodes well, both for our international customers as well as for our domestic customers.

從我所看到的、所讀到的以及我從客戶那裡聽到的情況來看，我們正處於谷底反彈。我認為我們越來越接近拐點。今天與我們最大的客戶之一交談時，他們指出，他們預計今年將出現幾年來的第一次真正的旺季。我認為這對我們的國際客戶和國內客戶來說都是好兆頭。

So it sounds like maybe stability in second half looked at 25 for maybe some growth in revenue per unit. Is that a reasonable way to think about it?

因此，聽起來下半年可能會穩定在 25 左右，單位收入可能會有所增長。這是一個合理的思考方式嗎？

Yeah, I think RPU on the domestic side is moving sideways. Thanks, Tom.

是的，我認為國內的 RPU 正在橫向移動。謝謝，湯姆。

Great.

偉大的。

Scott Group, Wolfe Research.

斯科特集團，沃爾夫研究。

Hey, thanks. Good afternoon. So, Mark, maybe just some help on the cost side. $25 million we get from the wage increase in Q3, but obviously there was some good sequential cost progress. So, any way to just help us think about the overall cost-ex-fuel trend in NOR in Q3? And then maybe just separately, Ed, the mix chart the last couple quarters is really helpful. Do you think this is a cyclical phenomenon of negative mix? Or is there something that's maybe more structural about where the growth is coming from?

嘿，謝謝。午安.所以，馬克，也許只是在成本方面提供一些幫助。我們從第三季的薪資成長中獲得了 2500 萬美元，但顯然成本連續取得了一些良好的進展。那麼，有什麼方法可以幫助我們思考第三季 NOR 的整體除燃料成本趨勢嗎？然後也許只是分開，艾德，最後幾季的混合圖表確實很有幫助。您認為這是一種負向混合的周期性現象嗎？或者，成長的來源是否存在更具結構性的因素？

Thanks, Scott, for the question. I'll ask Ed to help tag team on that second part of the question on the mix. But you want to go first with that?

謝謝斯科特提出這個問題。我會請 Ed 幫忙標記團隊解決混音問題的第二部分。但你想先這麼做嗎？

Sure, I can do that. I've already talked about some of the mixed challenges that we're seeing in intermodal. And I will tell you, we see the same story that's been playing out in the second quarter going forward into the really third and fourth.

當然，我能做到。我已經討論過我們在多式聯運中看到的一些複雜挑戰。我會告訴你，我們看到第二季正在上演同樣的故事，一直到第三季和第四季。

We're seeing significant volume growth in some of our lower rated merchandise commodities like aggregates and finished vehicles. And both of those move at kind of the lower end of that RPU spectrum. We are focused a lot on earning back merchandise share.

我們看到一些評級較低的商品（例如骨材和成品車）的銷售量顯著成長。兩者都處於 RPU 範圍的低端。我們非常注重贏回商品份額。

And the additional volume that we are seeing is really attributable to the better velocity and car supply that we're seeing out there. I mean, think about what happened in the automotive market, where we actually used less equipment to handle a record amount of revenue. It's a real sea change from where we've been.

我們看到的額外銷售實際上歸因於我們看到的更好的速度和汽車供應。我的意思是，想想汽車市場發生的事情，我們實際上使用更少的設備來處理創紀錄的收入。與我們之前的情況相比，這是一個真正的巨大變化。

Ed, you've got the same thing going on at Intermodal. That's right. the most powerful intermodal franchise in the East. We rationalize 15% of our lanes. John's providing the best service product we've provided in years and volumes up 8%.

艾德，聯運公司也發生了同樣的事情。這是正確的。東方最強大的多式聯運特許經營權。我們合理化了 15% 的車道。 John's 提供了我們多年來提供的最好的服務產品，數量增加了 8%。

And it gets right down to the basics, right? We sweat the asset efficiencies, moving the most car miles per day that we can, driving the efficiencies of our locomotives, and creating resiliency at a really low cost by eliminating waste, creating more capacity so we can onboard more customers and lengthen our trains, and really drive out the service reliability for our war rooms and our drill down

它直接回到基礎知識，對吧？我們注重資產效率，每天盡可能行駛最多的車輛里程，提高機車的效率，並透過消除浪費以非常低的成本創造彈性，創造更多的容量，以便我們可以搭載更多的客戶並延長我們的列車，並真正提高我們作戰室和深入研究的服務可靠性

And that transitions into the first part of the question. We're going to see more incremental volume growth here in the third quarter. That's one of the tailwinds for sure, even though we'll probably have some mix erode the benefit from that, adverse mix, I guess.

這就轉變為問題的第一部分。我們將在第三季看到更多的增量成長。這肯定是順風之一，儘管我們可能會受到一些混合因素的影響，我猜是不利的混合因素。

But I'd say another tailwind is, as you touched on, Scott, we've got really good momentum here on the productivity side. So I expect we're going to see continued of reductions in crew starts and overtime despite higher volumes. I think fuel efficiency should continue to improve. And look, we're attacking early, very, very early innings, attacking purchase services. So we've got some broad-based initiatives there. So we're going to see some really good tailwinds here, I think, in the third quarter. But as you touched upon, headwinds are there.

但我想說，正如你所提到的，史考特，另一個有利因素是，我們在生產力方面擁有非常好的動力。因此，我預計，儘管數量增加，但船員的起工和加班時間將繼續減少。我認為燃油效率應該會繼續提高。看，我們正在很早、非常、非常早地進攻，進攻購買服務。因此，我們在那裡採取了一些廣泛的基礎措施。因此，我認為，我們將在第三季看到一些非常好的順風車。但正如你所提到的，逆風是存在的。

We've got that 4.5% agreement wage increase that takes effect in July 1. So on day one of the third quarter, $25 million step up in comp and bend comes from that. And that's 80 basis points of sequential OR headwind. And on top of that fuel, the way we're modeling it, it seems like fuel is going to be probably 50, 60 basis points of sequential OR headwind as well. So we'll see how it all shakes out here, but ultimately we're, we're really happy with our position going into the third quarter.

我們已經達成了 4.5% 的工資成長協議，將於 7 月 1 日生效。這是連續或逆風的 80 個基點。除了燃料之外，按照我們建模的方式，燃料似乎也將是連續或逆風的 50、60 個基點。因此，我們將看到這一切如何發生變化，但最終我們對進入第三季的情況感到非常滿意。

Yeah, we're really confident. And our guidance for an OR in the second half of the year is 64% to 65%, despite revenue headwinds. And it's because of this flywheel effect that we're seeing in productivity, where a faster network is generating a lot of opportunities for John and his team to unlock savings.

是的，我們真的很有信心。儘管收入有阻力，但我們對下半年 OR 的指導為 64% 至 65%。正是由於這種飛輪效應，我們在生產力方面看到了這種效應，更快的網路為約翰和他的團隊帶來了許多節省成本的機會。

Ken Hoexter, Bank of America.

肯‧霍克斯特，美國銀行。

Hey, great. Good afternoon. I know that was recorded, but that seemed like you were on super speed. That was pretty good. Just talking, I guess, following on Scott's question there with the sequential performance, it seems like the five-year would suggest it doesn't move much in OR, but you're looking at 64%, 65% from a 65% or 65.9% if you exclude the real estate.

嘿，太棒了。午安.我知道那是被記錄下來的，但看起來你的速度超快。那已經很不錯了。只是說說，我想，按照斯科特關於連續表現的問題，五年似乎表明它在 OR 方面沒有太大變化，但你看到的是 64%、65% 從 65% 或如果排除房地產，則為65.9%。

I get what you just ran over with Scott, but it seems like given that the steps you're taking -- Alan, you kind of said you're really confident in those savings. Shouldn't we be taking, I guess, bigger steps down with, with some of the things you're doing, maybe just talk then what is the upside downside to that target, right? If, if you're confident in that 64, 65, what do you need to, to happen on John's side to, to maybe get you a little bigger step up versus, versus the counter costs you have.

我明白你剛剛與斯科特討論的內容，但考慮到你正在採取的步驟，艾倫，你有點說你對這些節省非常有信心。我想，我們不應該採取更大的步驟，對你正在做的一些事情，也許只是談談該目標的不利因素是什麼，對嗎？如果，如果你對 64、65 有信心，你需要做什麼，約翰這邊會發生什麼，才能讓你比你所擁有的反擊成本更大的進步。

Well, again, again, I -- you're right that, sequentially, Q2 to Q3, when we look historically, you have some years where you have improvement in the OR. You have other years where you have some level of degradation. I think, on average, it's probably slight degradation. In this year, which is somewhat of a unique period of time, and this is if you exclude 2020.

嗯，再一次，我 - 你是對的，從第二季度到第三季度，當我們回顧歷史時，你有幾年在 OR 方面取得了進步。在其他年份，你會出現一定程度的退化。我認為，平均而言，它可能會略有下降。今年是一個特殊的時期，如果排除 2020 年的話。

But in this year, if you look at this period of time, we're expecting sequential volume improvement. So that's really going to help us. And the gravy on top of that is continued momentum and what John is doing in face of all the headwinds that I laid out. So that's where the confidence is coming from.

但今年，如果你看看這段時間，我們預期銷量會持續改善。所以這確實會對我們有幫助。最重要的是持續的動力以及約翰面對我所列出的所有逆風所做的事情。這就是信心的來源。

I don't know, any -- I would say, Ken, my confidence comes from the power of the people and the engagement that we're delivering in the field. In the early days of my onboarding, I would go into major terminals and see opportunities, engage the team, inspire them to lead change.

我不知道，任何 - 我想說，肯，我的信心來自人們的力量和我們在該領域提供的參與。在入職初期，我會進入主要航站樓尋找機會，與團隊互動，激勵他們領導變革。

And now, as we build the team and reframe how our management structure is in the field, really focused on the day-to-day as well as strategic intent, we're doing that to scale. More people seeing more things. We're creating the flywheel, the finders, and increased capability.

現在，當我們建立團隊並重新建立我們在該領域的管理結構時，真正專注於日常和策略意圖，我們正在擴大規模。更多的人看到更多的事情。我們正在創造飛輪、探測器和增強的功能。

Just today, I signed off on a service design that eliminates 42 starts a week, and that's a result of four or five people just being out in the field doing safety blitzes, seeing other things happening, and finding ways to improve safety, synthesize train starts, elongate trains, and create more capability in the field. This is the power of the flywheel, and we're doing it based on safety and service sustainability. And I'm very confident as we build people and structure, we're going to keep delivering.

就在今天，我簽署了一項服務設計，每週消除 42 次啟動，這是四五個人在現場進行安全閃電戰、觀察其他事情發生、尋找提高安全性、綜合列車的方法的結果啟動、延長列車並在現場創造更多能力。這就是飛輪的力量，我們這樣做是基於安全和服務永續性。我非常有信心，當我們建立人員和結構時，我們將繼續交付。

Just getting also to the essence of your question on why not better, I'm just going to repeat what I said to Scott. There is some headwind here in the third quarter from the second quarter related to the wage increase of 80 basis points. And also the way we see the fuel curve playing out, there's probably another 60 basis points of headwind.

為了回答你關於為什麼不做得更好的問題的本質，我只想重複我對斯科特說的話。與第二季相比，第三季存在一些阻力，與薪資上漲 80 個基點有關。從我們看到的燃油曲線來看，可能還有另外 60 個基點的阻力。

So we're talking about overcoming that. And those are big hurdles. Maybe fuel is not, doesn't end up being as bad. That could be some upside. But honestly, we've got to see where volume shakes out too.

所以我們正在談論克服這個問題。這些都是很大的障礙。也許燃料不是，最終不會那麼糟。這可能有一些好處。但說實話，我們還得看看成交量在哪裡改變。

I think it's going to be a lot of hard work to overcome what we're doing to meet our guidance. And it's going to be sweat equity all the way.

我認為要克服我們正在做的事情來滿足我們的指導需要付出很多努力。這將始終是汗水資產。

I agree. And we're targeting more revenue. I mean, we know the macro environment is challenged. But look, let me give you two examples of recent wins that are only possible because of higher velocity and better car supply. We converted a coil lane from a highway with our largest metals customer between Indiana and Ohio.

我同意。我們的目標是增加收入。我的意思是，我們知道宏觀環境面臨挑戰。但是，讓我給你們舉兩個近期勝利的例子，這些勝利之所以可能，是因為更高的速度和更好的汽車供應。我們將印第安納州和俄亥俄州之間最大金屬客戶的高速公路改建為捲材車道。

And that's in a challenged metals market. We grew inorganically off the highway. We also converted a large highway lane to rail in the state of Georgia with our largest aggregate shipper, all because we're able to handle more tonnage with less equipment.

這是在充滿挑戰的金屬市場中。我們在高速公路外無機地成長。我們也與最大的骨材托運商一起將喬治亞州的一條大型高速公路改造成鐵路，這一切都是因為我們能夠用更少的設備處理更多噸位的貨物。

Jeff Kauffman, Vertical Research Partners.

傑夫考夫曼，垂直研究夥伴。

Thank you very much, and congratulations in a tough environment. I just kind of want to get your big picture view on some of the changes with the STB and the hearings that they're having and how that may or may not impact the realm.

非常感謝，並祝賀您在艱難的環境中。我只是想讓您了解 STB 的一些變化以及他們正在舉行的聽證會，以及這些變化可能會或可能不會影響該領域。

The STB's got a hearing coming up about growth. And that's part of our balance strategy. The STB's focused on service. So are we. And we're delivering, right? We are improving service. We're reducing costs. We're growing revenue. and we're enhancing safety. So we've got a good story to tell here, and we're aligned.

STB 將召開有關成長的聽證會。這是我們平衡策略的一部分。 STB 的重點是服務。我們也是。我們正在交付，對嗎？我們正在改善服務。我們正在降低成本。我們正在增加收入。我們正在加強安全。所以我們在這裡有一個好故事要講，而且我們是一致的。

And just to add, Alan, when we were in Washington a few weeks ago meeting with the STD commissioners, they were really reinforcing our business plan and resiliency as being an enabler of service and driving the US economy, and they were right in lockstep with our vision. So I think it's always going to challenge the sector when the commercial regulator wants to talk to the sector. But when we're out leading in front of all of that, I think it serves us well to continue what we're doing.

艾倫，我要補充一點，當我們幾週前在華盛頓與 STD 專員會面時，他們確實在加強我們的業務計劃和彈性，作為服務的推動者並推動美國經濟，而且他們與我們的願景。因此，我認為當商業監管機構想要與該行業對話時，它總是會對該行業提出挑戰。但當我們在所有這些方面處於領先地位時，我認為繼續我們正在做的事情對我們很有好處。

Chris Wetherbee, Wells Fargo.

克里斯‧韋瑟比，富國銀行。

Hey, thanks. Good afternoon, guys. I guess as we're thinking about the progress that you're making, John, in particular, as we move through in the back half of the year, I guess How do we think about headcount? What resources are sort of required given the progress that you're making here? I guess, in other words, should we be able to see further reductions in heads as we move sequentially through the rest of the year?

嘿，謝謝。下午好，夥計們。我想，當我們考慮你所取得的進展時，特別是約翰，當我們在今年下半年邁進時，我想我們如何看待員工人數？鑑於您在這裡取得的進展，需要哪些資源？換句話說，我想，隨著今年剩餘時間的推移，我們是否能夠看到頭部數量進一步減少？

Well, I can tell you this. While it's true there are fewer T&E headcounts, this is not a headcount reduction exercise. This is right-sizing the service and aligning the asset efficiencies with the customer and the customer requirements.

好吧，我可以告訴你這一點。雖然差旅和娛樂人員數量確實有所減少，但這並不是人員減少活動。這是根據客戶和客戶需求調整服務規模並使資產效率保持一致。

Sequentially, we did show a 2% improvement on T&E. We've frozen hiring except where there's a really substantial reason or an acute skill that we need to bring on. But it really is working with labor to address outliers, right-size the organization, and where we're long on people, getting the flexibility to move them where they need to be. And I really watch our expense and the cost for T&E headcount in our KGTMs.

隨後，我們的 T&E 確實提高了 2%。我們凍結了招聘，除非有真正充分的理由或需要我們提供敏銳的技能。但它實際上是與勞動力合作來解決異常情況，調整組織規模，以及我們需要人才的地方，並靈活地將他們調動到需要的地方。我非常關注我們的開支以及 KGTM 中 T&E 人員的成本。

And I made that clear in my opening remarks that despite the fact that we're improving service, providing some of the best operating efficiencies in the network, we're doing it at a lower cost overall. And that's what I really focus on, eliminating the waste associated with overtime, taxis, hotels, those sorts of things that don't give you any value. So, that's where I think you can look forward to seeing more of.

我在開場白中明確表示，儘管我們正在改善服務，提供網路中一些最佳的營運效率，但我們總體成本較低。這就是我真正關注的重點，消除與加班、計程車、飯店等相關的浪費，這些不會為你帶來任何價值。所以，這就是我認為你可以期待看到更多的地方。

And Chris, I would tell you, we are on track to be down 2% like we had guided previously by the time we get to the end of the year versus the end of last year. And that's on carrying a little bit more volume, right?

克里斯，我想告訴你，到今年年底時，我們預計會比去年年底下降 2%，就像我們之前所指導的那樣。那就是攜帶更多一點的體積，對嗎？

Brian Ossenbeck, JPMorgan.

布萊恩‧奧森貝克，摩根大通。

Hey, good afternoon. Thanks for taking the question. So, Mark, just to maybe come back to that sequential headwind of about 140 basis points into 3Q from 2Q, does that really imply that there's more of a four-quarter weighted impact to get to the target, or are there some other sort of big-ticket items you're counting on coming through the next quarter?

嘿，下午好。感謝您提出問題。因此，馬克，也許回到第三季度從第二季度開始約140 個基點的連續逆風，這是否真的意味著要達到目標需要更多的四季度加權影響，或者是否存在其他某種形式的影響？

And I guess to that point, Ed gave us a couple of examples. environment has been tough to call. It's been a little softer than expected. So what gives you the confidence that some of that's going to come through, especially sequentially to help you hit that target in 3Q?

我想到目前為止，艾德給了我們幾個例子。環境一直很難說。比想像中的軟一些。那麼，是什麼讓您有信心其中一些目標將會實現，特別是依次幫助您在第三季實現該目標？

Yeah, I think that actually the profile in the back half, you have a typical challenge in the fourth quarter being a lighter one where you see the OR float up. I actually think because of the momentum we're making, there'll be continuous productivity that we get throughout the year.

是的，我認為實際上後半部分的輪廓，你在第四季度面臨一個典型的挑戰，那就是一個更輕的挑戰，你會看到 OR 漂浮起來。事實上，我認為由於我們正在形成的勢頭，我們全年都會獲得持續的生產力。

So while we might get a little bit more volume in the third quarter and a little bit less as you typically would expect in the fourth quarter, the productivity is going to help us sail through. And I would imagine that both third and fourth quarter are going to look somewhat similar here.

因此，雖然我們在第三季度的銷量可能會增加一點，而在第四季度的銷量可能會比您通常預期的少一點，但生產力將幫助我們順利度過難關。我想第三季和第四季看起來會有些相似。

John Chappell, Evercore ISI.

約翰·查佩爾，Evercore ISI。

Ed, past and future, first in the past, is there any way to quantify, if there was any, any potential volume impact from the distraction, if you will? of the last several months, any customers who maybe had some negative muscle memory from cutting to bone and putting in contingency plans ahead of final certainty.

Ed，過去和未來，首先是過去，有沒有辦法量化（如果有的話）分心造成的任何潛在的音量影響，如果你願意的話？在過去的幾個月裡，任何可能因切割骨頭而產生負面肌肉記憶並在最終確定之前製定應急計劃的客戶。

And then the second part of it would be for the future, you mentioned some of the wins that you've had from these new service metrics that you're putting up. Do you feel that you have a long list of customers who've been resistant to moving to the rail given past service who are now a little bit more open to switching back to the rail network, given some of these vast improvements you've made?

第二部分是針對未來的，您提到了您從所提出的這些新服務指標中獲得的一些勝利。您是否覺得您有一長串客戶，他們在過去的服務中一直抵制搬到鐵路網絡，但考慮到您所做的一些巨大改進，現在他們更願意轉回鐵路網絡？

Yeah, I'm trying to remember the first part of your question. I didn't lose any volume.

是的，我正在努力記住你問題的第一部分。我沒有損失任何音量。

Yeah. Look, our customers, I think you guys know this, our customers were one of the most supportive groups of our strategy out there as we moved through this whole first half of the year. And they were rooting for us, and they were behind us, and they are helping us unlock additional value for the supply chain right now.

是的。聽著，我們的客戶，我想你們都知道這一點，在我們度過整個上半年的過程中，我們的客戶是我們策略中最支持的群體之一。他們支持我們，支持我們，現在正在幫助我們釋放供應鏈的額外價值。

And moving forward, look, we got a lot of confidence in growing our volumes across the board. But really, we're focused on one area in particular, where we know that we have lost share that's in our merchandise markets.

展望未來，我們對全面增加銷售充滿信心。但實際上，我們特別關註一個領域，我們知道我們已經失去了商品市場的份額。

And I would say it is not customers that are resistant to coming back to us. It is customers that we have to earn back because they had to find a different supply chain solution, which probably cost them more money. So we're working really hard every single day to earn those customers back, and that's what we're focused on.

我想說的是，並不是顧客拒絕回到我們這裡。我們必須贏回客戶，因為他們必須找到不同的供應鏈解決方案，這可能會花費他們更多的錢。因此，我們每天都在非常努力地贏回這些客戶，這就是我們所關注的重點。

Look, our service product sells in this market, right? Our two most service-sensitive markets, automotive and [intermodal], grew 7% and 8%. respectively because of the great product that John Orr and his team are putting together. And because of the alignment between marketing and operations, they're looking for every opportunity to secure additional revenue and additional margin. And we were able to pick up spot opportunities in weak coal markets and weak agriculture markets because of the Great product we're delivering and the capacity dividend that John has created.

你看，我們的服務產品在這個市場有賣吧？我們對服務最敏感的兩個市場，汽車和[多式聯運]，分別成長了 7% 和 8%。分別是因為約翰·奧爾和他的團隊正在製作出色的產品。由於行銷和營運之間的一致性，他們正在尋找一切機會來確保額外的收入和額外的利潤。由於我們提供的優質產品和約翰創造的產能紅利，我們能夠在疲軟的煤炭市場和疲軟的農業市場中抓住現貨機會。

And the relationships that we've built over a long period of time with our customers, who, like I said, supported us through this whole thing.

以及我們與客戶長期建立的關係，正如我所說，他們在整個過程中支持我們。

Great point.

很棒的一點。

Brandon Oglenski, Barclays.

布蘭登·奧格倫斯基，巴克萊銀行。

Hey, good afternoon, and thanks for taking my question. Ed, maybe just on a very quick point of clarification, are you still expecting coal yield to decline in the back half, especially on export? Because I think that was the prior expectation.

嘿，下午好，感謝您提出我的問題。艾德，也許只是快速澄清一下，您是否仍然預計下半年煤炭產量會下降，尤其是出口方面？因為我認為這是之前的期望。

And then, Mark, I think in your recorded remarks, you ended your statement talking about, hey, we had prior big land sale transactions. We think we've identified a few more. I think that's what I heard. So should we be contemplating that in the forward OR outlook? I think that's maybe where you were going.

然後，馬克，我認為在你的錄音講話中，你在聲明結束時談到，嘿，我們之前有過大規模的土地出售交易。我們認為我們已經確定了更多。我想這就是我聽到的。那麼我們應該在未來或前景中考慮這一點嗎？我想那也許就是你要去的地方。

And you also made a comment that I think you should expect about $12.5 million a quarter. So should we be thinking annualized $50 million gains, or are you saying there's potentially bigger sales coming? Thank you.

您還評論說，我認為您每季的預期應該約為 1250 萬美元。那麼我們是否應該考慮年化 5,000 萬美元的收益，還是說可能會有更大的銷售額即將到來？謝謝。

Actually, I'll answer that second part first. So the large land gains that I was referring to would be things that we would typically call out, referred to as kind of probably more of the non-GAAP size. And that's really in terms of trying to augment our balance sheet. So, no, they are not in any way part of the path on the OR going forward. It was really more of a conversation on capital and restoring our balance sheet.

實際上，我會先回答第二部分。因此，我所指的大量土地收益是我們通常會指出的，被稱為可能更多的非公認會計準則規模。這實際上是為了擴大我們的資產負債表。所以，不，它們無論如何都不是手術室前進道路的一部分。這實際上更多的是關於資本和恢復我們的資產負債表的對話。

Typically, we guide to $30 million to $40 million a year on real estate gains in the normal course that we absorb within the OR. And there are years where that's $20 million, there are years where that's $50 million, but it's kind of in that $30 million, $40 million range. So I was making a more general smoothing commentary talking about, call it 50, but it could be in that neighborhood, $40 million, $50 million range this year. Okay.

通常情況下，我們建議每年在 OR 內吸收 3,000 萬至 4,000 萬美元的房地產收益。有些年份是 2000 萬美元，有些年份是 5000 萬美元，但也有 3000 萬美元、4000 萬美元的範圍。所以我做了一個更一般的平滑評論，稱之為 50，但今年可能在 4000 萬美元、5000 萬美元的範圍內。好的。

And then you'd ask about coal prices as well. There were a few global supply chain disruptions in the quarter that caused the slight lift in prices, but those gains have mostly eroded away, and the expectation is that rates are going to continue to drift slightly lower. The experts that we talked to, and there are several of them, are really expecting those seaborne prices to stay north of $200, but we'll see what happens.

然後你還會詢問煤炭價格。本季出現了幾次全球供應鏈中斷，導致價格小幅上漲，但這些漲幅大部分已經消失，預計利率將繼續小幅走低。我們採訪過的專家（其中有好幾位）確實預計海運價格將保持在 200 美元以上，但我們將看看會發生什麼。

Ravi Shanker, Morgan Stanley.

拉維‧尚克，摩根士丹利。

Thank you. Good evening, everyone. I think you said earlier that there's something around the East Coast Port actions and some customer behavior there. Can you unpack that a little bit more and give a little more detail there? What are you seeing already? What's some of the timeline for this and kind of where can it go before that sort of stuff?

謝謝。各位晚上好。我想你之前說過，東海岸港口的行動和那裡的一些客戶行為存在一些問題。您能否進一步解開並提供更多細節？你已經看到了什麼？這件事的時間表是什麼？

Sure. I'll take that one. I think everyone knows the ILA has a deadline of September 30 to reach agreement with the port operators. We are talking to all of our steam ship line customers as well as our domestic intermodal partners.

當然。我會接受那個。我想每個人都知道 ILA 與港口營運商達成協議的最後期限是 9 月 30 日。我們正在與所有蒸汽船公司客戶以及國內多式聯運合作夥伴進行洽談。

And shippers are starting to hedge their bets a little bit. We see a lot of West Coast activity on the rise for a number of reasons. That includes what's going on in the Red Sea.

托運人也開始對沖他們的賭注。由於多種原因，我們看到西海岸的許多活動都在增加。這包括紅海正在發生的事情。

But as that happens, customers, the BCOs have to get their freight to market. So they're deploying freight to the West Coast as well as the East.

但當這種情況發生時，客戶、BCO 必須將貨物推向市場。因此，他們正在向西海岸和東部部署貨運。

And I really believe, and this is just me observing the market, I think with the shortage of containers, seaborne containers that are out there because of the elongated supply chains, what you're going to see is steamship lines will not want their boxes coming inland off the West Coast. And so there's going to be a lot of demand for domestic intermodal off the West Coast. That's the way I think this thing evolves.

我真的相信，這只是我對市場的觀察，我認為由於貨櫃短缺，由於供應鏈拉長而出現海運貨櫃，你會看到輪船公司不會想要他們的箱子離開西海岸進入內陸。因此，西海岸對國內多式聯運的需求將會很大。我認為這就是事情發展的方式。

Elliot Alper, TD Cowen.

艾略特·阿爾珀，TD·考恩。

You brought up the next lever for margin will be some of the broad-based initiatives and purchase services. Hoping you could elaborate on that. You talked about some of the OPEX items that will be headwinds through the back half of the year. Maybe how should we think about the cadence of purchase services as we progress through the year?

您提出的下一個保證金槓桿將是一些廣泛的舉措和購買服務。希望你能詳細說明一下。您談到了今年下半年將面臨阻力的一些營運支出項目。也許隨著時間的推移，我們該如何考慮購買服務的節奏？

Hey, thanks for the question, Elliot. Yeah, I mean, obviously, it's a big spend amount that's gone up a lot from technology in the past handful of years, largely subscription-based or cloud-based services. So you see a lot more software costs showing up now in purchase services as opposed to in capital.

嘿，謝謝你的提問，艾利歐特。是的，我的意思是，顯然，過去幾年技術支出大幅增加，主要是基於訂閱或基於雲端的服務。因此，您會看到更多的軟體成本現在出現在購買服務中，而不是資本中。

But at the same time, probably about a third is related to the volume variable costs associated with intermodal activity. So intramodal grew 8% year over year, but we actually limited the purchase services increase to around 3%. And actually, sequentially, it was down slightly. So this is an area that we've spent a lot of time, John and I, in the past couple months talking about.

但同時，約有三分之一與多式聯運活動相關的數量變動成本有關。因此，聯運年增 8%，但我們實際上將採購服務的成長限制在 3% 左右。事實上，連續一段時間，它略有下降。所以這是我們約翰和我在過去幾個月花了很多時間討論的領域。

And we're going to be focused pretty aggressively on trying to find opportunities to bring this down. And certainly, a lot of the other areas of purchase services outside of the volume variable pieces. John, you want to jump in?

我們將非常積極地集中精力尋找機會來解決這個問題。當然，除了體積可變件之外，還有許多其他領域的購買服務。約翰，你想跳進去嗎？

Yeah, we look, just take fuel for example. We're really driving hard to pull locomotives out, reduce our exposure there, but at the same time, looking at our fuel distribution process, we've been able to streamline that, reduce some DTL trucks in reliance on that.

是的，我們看，就以燃料為例。我們確實在努力拉出機車，減少我們在那裡的暴露，但與此同時，看看我們的燃料分配流程，我們已經能夠簡化流程，減少一些 DTL 卡車對此的依賴。

Similar to how we're pruning the intermodal franchise, we're pruning some of the more expensive fuel and fuel distribution, and at the same time then looking at how do we create more vendor accountability and visibility. So we've got some really short-term, mid-term, long-term views on fuel, and that's even putting locomotives down cascades into raw materials, and of course it's associated with maintaining locomotives that we're able to put down.

與我們削減多式聯運特許經營權的方式類似，我們正在削減一些更昂貴的燃料和燃料分銷，同時研究如何建立更多的供應商責任和可見性。因此，我們對燃料有一些真正的短期、中期、長期觀點，甚至將機車分解為原料，當然，這與維護我們能夠放下的機車有關。

And one other point on purchase services, because you did ask about how it would look, the balance of the year. I would tell you it is going to be no worse than what you see in the first half. I would expect it to be down year over year in the back half.

關於購買服務的另一點，因為您確實詢問了它的外觀，即今年的餘額。我會告訴你，這不會比你在上半場看到的更糟。我預計下半年會年減。

We've got broad-based focus on productivity. Purchase service is a big part of that. We got clear line of sight and a roadmap, drive productivity and workforce, and then fuel, and purchase services, and equipment rents. And at the same time, really focus on leveraging this great service product to drive more merchandise revenue, and then leveraging our powerful intermodal franchise as the truck market responds to drive more revenue there as well.

我們廣泛關註生產力。購買服務是其中的重要組成部分。我們獲得了清晰的視線和路線圖，提高了生產力和勞動力，然後是燃料、購買服務和設備租金。同時，真正專注於利用這款出色的服務產品來推動更多的商品收入，然後隨著卡車市場的反應，利用我們強大的多式聯運特許經營權來推動更多的收入。

What do you think about one of the biggest crew costs for recruits? Yeah. And how much that drives and what a great job you've done of reducing that in overtime. So we're knocking recrews out, reducing our exposure to overtime, reducing our exposure to taxi cabs, hotels, all the associated costs with that. And that is just a winning proposition because as you reduce recrews, you're creating service stability. That flies in the wheelhouse of ed and being able to sell. That's the power of the resiliency that we're creating at the lowest cost possible and the flywheel of mobility.

您如何看待新兵最大的船員成本之一？是的。這帶來了多大的推動力，以及你在減少加時賽中所做的出色工作。因此，我們正在裁員，減少加班，減少計程車、飯店以及所有相關成本。這只是一個成功的主張，因為當你減少員工時，你就創造了服務穩定性。這在 ed 的駕駛室中飛翔並且能夠銷售。這就是我們以盡可能最低的成本創造的彈性和機動性飛輪的力量。

Daniel Imbro, Stephens Inc.

丹尼爾·因布羅，史蒂芬斯公司

Yeah, thanks. Good evening, guys. Alan, I wanted to circle back to winning some of that merchandise business back from the disruption earlier this year. It sounds like service is in a good place. The flywheel is turning, and you have the ability to absorb that volume.

是的，謝謝。晚上好，夥計們。艾倫，我想回過頭來從今年早些時候的混亂中贏得一些商品業務。聽起來服務還是不錯的。飛輪正在轉動，您有能力吸收該體積。

So I guess, what do you think it takes to catalyze and start winning back? some more of that more profitable merchandise volume. And then on the guide, does it include some pace of market share win back or volume win back that's embedded in that volume outlook for the back half? Thanks.

所以我想，你認為需要什麼來催化並開始贏回？更多利潤更高的商品量。然後，在指南中，它是否包括後半段銷售前景中嵌入的市場份額贏回或銷售贏回的一定速度？謝謝。

Yeah, a lot of it is just leveraging that improved service product and also the capacity that we have to bear as we increase the utilization of our equipment and our customers equipment, we can put more capacity up against up against the market. Frankly, even in this freight environment, customers want to save money. And rail has a cost advantage relative to truck.

是的，其中許多只是利用改進的服務產品以及我們在提高設備和客戶設備的利用率時必須承受的產能，我們可以投入更多的產能來對抗市場。坦白說，即使在這種貨運環境下，客戶也希望省錢。而且鐵路相對於卡車具有成本優勢。

Exactly. And look, let's be clear. The erosion in our merchandise volume didn't happen in the first half of this year. It's happened over a fairly extended period of time, right, as we've worked really hard to get to where we are right now. So there are varying levers we're going to pull with various customers.

確切地。看，讓我們說清楚。今年上半年我們的商品數量並沒有下降。這已經發生了相當長的一段時間了，對吧，因為我們非常努力才達到現在的水平。因此，我們將對不同的客戶採取不同的手段。

But the first one that we're going to pull with every customer is giving them exactly what they want, which is a conveyor belt that runs at the same speed all the time. And that's fundamentally what our customers need, first of all. And we're out there right now demonstrating it and proving it to them.

但我們要向每位客戶提供的第一個目標就是為他們提供他們想要的東西，那就是一條始終以相同速度運行的傳送帶。首先，這就是我們的客戶所需要的。我們現在就在那裡向他們展示並向他們證明這一點。

And I think that's why our approach, customer service facing, is better. And we're still getting productivity, reducing resources, reducing capacity or creating capacity without impacting service.

我認為這就是為什麼我們面向客戶服務的方法更好。我們仍在不影響服務的情況下提高生產力、減少資源、減少容量或創造容量。

Jordan Alliger, Goldman Sachs.

喬丹·阿利格，高盛。

Yeah, hi. Afternoon. Just sort of a question. Sort of from an operational standpoint, a whole bunch of operational initiatives that you talked about to close the margin gap. I'm just sort of curious as we think about all of them, You know, how much of the plan this year, and as we flow into next year, is what you would consider, for lack of a better word, basic blocking and tackling, fine-tuning, versus major sea changes? Just trying to assess the difficulty of execution as we go along from here. Thanks.

是的，嗨。下午。只是一個問題。從營運的角度來看，您談到了一系列旨在縮小利潤差距的營運舉措。我只是有點好奇，當我們想到所有這些時，你知道，今年的計劃以及當我們進入明年時，你會考慮多少計劃，因為缺乏更好的詞，基本的阻塞和應對、微調，還是應對重大變化？只是試著評估我們從這裡開始的執行難度。謝謝。

Well, there is no secret. I mean, it's hard work, and it's running an efficient, effective railroad every single day. and that stability lends itself to opportunity. Whether it's an asset utilization, crew utilization, fuel efficiency, all of those things, I've made a solid commitment on the path to taking out 450, overall our $450 million in the, to make this happen.

嗯，沒有什麼秘密。我的意思是，這是一項艱苦的工作，而且每天都在運作一條高效、有效率的鐵路。穩定本身就帶來機會。無論是資產利用率、機組人員利用率、燃油效率，還是所有這些方面，我都做出了堅定的承諾，將拿出 450 美元（總共 4.5 億美元）來實現這一目標。

And I -- that's a series of small wins, bigger wins, but there -- we've got line of sight to a big pipeline of opportunities that will just grind through and they'll come at different points. Today is what we would consider an inflection point. And as we move through that, create stability and drive forward, it'll always be there. So I would say it's a blend of those things and we're going to drive hard.

我——這是一系列的小勝利，更大的勝利，但是——我們已經看到了一系列巨大的機會，這些機會將不斷磨礪，它們會在不同的點出現。今天是我們認為的轉捩點。當我們經歷這個過程、創造穩定並向前推進時，它會永遠存在。所以我想說這是這些事情的混合體，我們將努力駕駛。

Look, it's leadership, it's plan, it's discipline of execution. And what John and his team are producing, the acceleration of our operational improvements allows us to have the confidence to reaffirm our guidance and overcome the market weakness for the second half of the year.

看，這是領導力，這是計劃，這是執行紀律。約翰和他的團隊正在生產，我們營運改善的加速使我們有信心重申我們的指導並克服下半年的市場疲軟。

Walter Spracklin, RBC Capital Markets.

沃爾特‧斯普拉克林 (Walter Spracklin)，加拿大皇家銀行資本市場部。

Yeah, thanks very much, operator. Good afternoon, everyone. I'd like to turn that market opportunity focus to one that hasn't been in your wheelhouse before, and that's Mexico. And Union Pacific, having mentioned it on their call several times, obviously a big focus for CPKC, nearshoring and onshoring being a big trend. I know when you gave access to CPKC, gave Meridian Speedway access to the CPKC, it may have been a little bit contentious at the time during the debate, but I think --

是的，非常感謝，接線員。大家下午好。我想將市場機會重點轉向以前從未在您的駕駛室中出現過的市場機會，那就是墨西哥。聯合太平洋公司在電話會議中多次提到這一點，這顯然是 CPKC 的一大關注點，近岸外包和在岸外包是一個大趨勢。我知道當您授予 CPKC 訪問權限、授予 Meridian Speedway 訪問 CPKC 權限時，當時在辯論期間可能存在一些爭議，但我認為——

Correct me if I'm wrong, I mean, what they're saying is that this now opens up a route or a new destination for Mexico product into the Southeast via CBKC and into your network and CSX's network, and that the opportunity presented has never been there before. Is that true? Do you see that as an opportunity? Could this be a new source of business for you? getting Mexico product into the Southeast via your routes as described? Or would you put more of a challenge on that?

如果我錯了，請糾正我，我的意思是，他們的意思是，這現在為墨西哥產品通過CBKC 進入東南部並進入您的網絡和CSX 的網絡開闢了一條路線或一個新目的地，並且所提供的機會以前從未去過那裡。真的嗎？您認為這是一個機會嗎？這會成為您的新業務來源嗎？透過您描述的路線將墨西哥產品運往東南部？或者你會對此提出更多挑戰嗎？

Well, look, here's what I would say. We know that near-shoring or on-shoring, however you want to describe that, is occurring. There's two kinds of manufacturing that I think is going to come back to North America. Advanced manufacturing, which is high-value add and probably is very automated. I think that's going to come back to the US.

好吧，聽著，這就是我要說的。我們知道，無論你想如何描述，近岸或在岸正在發生。我認為有兩種製造業將會回歸北美。先進製造具有高附加價值並且可能高度自動化。我認為這會回到美國。

But basic manufacturing is probably going to a place in North America that is Mexico. So we're talking really every week with Grupo Mexico as well as the CPKC on opportunities. One of those opportunities is connecting Mexico to the southeast via the Meridian Speedway. That's for sure. There are other opportunities that will emerge in the near future, that I think will be very exciting opportunities and products for various segments of US manufacturing.

但基礎製造業可能會轉移到北美的一個地方，那就是墨西哥。因此，我們每週都會與 Grupo Mexico 以及 CPKC 就機會進行討論。這些機會之一是透過子午線高速公路將墨西哥與東南部連接起來。這是肯定的。在不久的將來還會出現其他機會，我認為這對美國製造業的各個領域來說將是非常令人興奮的機會和產品。

Ed, we just had General Motors in the office yesterday talking about, you know, some of the supply chains, and it wasn't lost on me that Mexico was part of that conversation. It's going to be a part of the conversation, and I've just spent the last three years in that part of the world and really understand where the connection opportunities are.

艾德，昨天通用汽車公司在辦公室談論了一些供應鏈，我並沒有忘記墨西哥是這次談話的一部分。這將成為對話的一部分，過去三年我剛在世界的那個地區度過，真正了解了聯繫機會在哪裡。

And you're right, we've got a great opportunity for both major railways in Mexico, as well as the Short Sea. So I think that's a real opportunity in the immediate and near term. Yeah, I would say stand by for future developments.

你是對的，我們在墨西哥的兩條主要鐵路以及短海地區都有很好的機會。所以我認為這在近期和近期內是一個真正的機會。是的，我想說的是，為未來的發展做好準備。

Stephanie Moore, Jefferies.

史蒂芬妮·摩爾，杰弗里斯。

Hi, good afternoon. Thank you. I wanted to touch on -- with just the increased productivity that you're seeing this year, does this kind of load the spring, so to speak, going forward for even better OR improvements in the years ahead, AKA kind of maintaining the OR guide this year, even though lower revenues, if we roll that forward to 2025 and 2026 and hopefully more constructive freight background, our backdrop, does that mean kind of the, accelerating OR expansion in the years ahead. Love to get your thoughts. Thanks.

嗨，下午好。謝謝。我想談談——隨著今年你所看到的生產率的提高，這種負載彈簧是否會受到影響，可以這麼說，在未來幾年中取得更好的 OR 改進，也就是維護 OR今年的指導，即使收入較低，如果我們將其推遲到2025 年和2026 年，並希望更具建設性的貨運背景，我們的背景，這是否意味著未來幾年加速OR 擴張。喜歡了解你的想法。謝謝。

At the beginning of this year, we set out a pretty aggressive long-term OR targets, and we are doing everything we said we would do. We are delivering despite a weak freight environment. We are in the first year of a multi-year plan to reduce OR to a sub-60% rate, and then we'll keep going.

今年年初，我們制定了相當激進的長期 OR 目標，我們正在做我們說過要做的一切。儘管貨運環境疲軟，我們仍在交貨。我們正處於將 OR 率降低至 60% 以下的多年計劃的第一年，然後我們將繼續前進。

We're executing, we're improving service, we're reducing costs, we're growing revenue in a tough rate environment, and we're enhancing our safety. We've laid out a roadmap and we're delivering on it.

我們正在執行，我們正在改進服務，我們正在降低成本，我們正在艱難的費率環境中增加收入，我們正在增強我們的安全性。我們已經制定了路線圖，並且正在實施它。

And I think if you see outsized top line opportunities that on the horizon, I think you know in this industry, it usually generates outsized drop through opportunities and maybe you end up getting there faster.

我認為，如果你看到即將出現的巨大的收入機會，我想你知道在這個行業，它通常會產生巨大的機會下降，也許你最終會更快到達那裡。

So thank you very much, everyone. There are no further questions at this time. I'd now like to turn the call back over to Alan Shaw, President and CEO, for the final comments.

非常感謝大家。目前沒有其他問題。現在我想將電話轉回總裁兼執行長艾倫·肖 (Alan Shaw)，以徵求最終意見。

Thanks, Luke. Thanks for your interest in Norfolk Southern, and we'll look forward to continuing the conversations over the next couple months.

謝謝，盧克。感謝您對諾福克南方航空的興趣，我們期待在接下來的幾個月內繼續進行對話。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。