CSX sets 2015 capital expenditures at $2.5 billion

Written by Mischa Wanek-Libman, editor
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CSX

CSX Corporation had a lot of good news for investors during this mornings Quarter 4 2014 earnings conference call including record fourth-quarter 2014 net earnings. The railroad also unveiled that it will target a $2.5-billion capital expenditure program in the upcoming year. In 2014, the railroad targeted a $2.3-billion capital spend program.

Core investment is expected to be about 17 percent of revenue in 2015 and excludes investments related to public-private reimbursable projects. The railroad’s infrastructure spend, which accounts for 49 percent or $1.225 billion of the 2015 program, will target rail safety and performance. Strategic investments to support growth and productivity will make up 16 percent or $400 million of the 2015 program.

Positive Train Control investment will be $300 million in 2015, but CSX noted that more then $400 million is still needed for the technology beyond this year.

On the equipment side of things, CSX noted that locomotive and car investment is driven by service and commercial demand and plans to spend 23 percent or $575 million of its 2015 program on equipment needs.

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