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CSX EARNINGS INCLUDE ONE-TIME CHARGE

 CSX EARNINGS INCLUDE ONE-TIME CHARGE
 RICHMOND, Va., Jan. 22 /PRNewswire/ -- CSX Corporation (NYSE: CSX)


today reported a net loss for the fourth quarter of 1991 of $356 million, $3.47 per share, which includes a one-time charge of $755 million for productivity improvements, $490 million after tax, $4.80 per share(E).
 Without the one-time charge, net earnings for the period would have increased 4 percent to $134 million, $1.33 per share, compared with $129 million, $1.31 per share, in the fourth quarter of 1990.
 John W. Snow, chairman and chief executive officer of CSX, said, "Although the charge has a one-time, negative impact upon otherwise strong earnings, the cost savings in future years will improve earning power of the company in the long term."
 Because of the one-time productivity charge and the company's adoption of FASB Statement No. 106, CSX reported a net loss of $272 million, $2.70 per share, for the full year. Also included in the 1991 results are after-tax gains totaling $32 million, 32 cents per share, from the sale of RF&P Corporation stock and other net investment gains, primarily from the sale of a one-third interest in a Sea-Land subsidiary that operates a container terminal in Hong Kong. Excluding unusual items from both years, earnings for 1991 would have been $382 million, $3.81 per share, compared with $401 million, $4 per share, in 1990. The 1990 net results included an after-tax gain of $52 million, 53 cents per share, from the sale of the stock of CSX Energy Corporation, which was largely offset by an organizational restructuring expense incurred by Sea-Land during the first quarter of that year.
 Snow said, "Despite the continuing weakness of the general economy, we are making progress by focusing on the basics of our core businesses, improving performance and reducing the cost structure across the company. In fact, strong earnings at the railroad and container- shipping units were masked by weak real estate sales, which largely accounted for the year-to-year decline in earnings. We are well positioned to take full advantage of the upturn in the economy when it comes."
 Total operating revenue for the fourth quarter increased $89 million from the year-ago level to $2.3 billion, reflecting strong increases in container traffic, particularly in the Asia/Middle East/Europe and intra-Europe markets, as well as improved yields on rail merchandise traffic. Including the productivity charge, operating expense rose to $2.8 billion. Operating expense, excluding this charge, exceeded the year-ago level by $70 million due to increased container traffic and inflationary pressures on labor and fringe costs.
 For the year, operating revenue increased $431 million, 5 percent, to $8.6 billion from $8.2 billion in 1990. Operating expense, as a result of the $755 productivity charge, increased to $8.5 billion from $7.4 billion in 1990.
 QUARTERLY SEGMENT RESULTS
 The rail unit reported an operating loss of $460 million for the quarter, including its $647 million portion of the productivity charge. Excluding this charge, rail operating income for the quarter was $187 million, $7 million above year-ago results. Rail revenue increased $24 million to $1.3 billion, despite the general economic slowdown. These results reflect the unit's continued success in improving revenue per carload across several commodity groups and a 15 percent increase in auto shipments in the face of lackluster car sales. Coal originations fell slightly to 43.4 million tons vs. 43.8 million tons in the year-ago quarter. However, export coal continued to show signs of strength, rising 9 percent, or 600,000 tons, for the quarter. For the year, coal originations were down 6 percent to 168 million tons, but export coal increased 7 percent, or 1.9 million tons to 29.7 million tons for the year.
 Rail operating expense, including the productivity charge, totaled $1.8 billion. Excluding the productivity charge, operating expense rose $17 million, or 2 percent, to $1.1 billion, due to inflationary pressures on wages and fringe benefits. However, this was partially offset by savings from reductions in employee injuries and train accidents, which declined 27 percent and 11 percent, respectively.
 Container-shipping revenue increased 11 percent to $878 million in the fourth quarter. Operating income, excluding the productivity charge, increased 58 percent, or $18 million, to $49 million in the quarter. This improvement was driven by strong growth in the Asia/Middle East/Europe, intra-Europe and Americas markets -- global trade patterns not directly impacted by the U.S. economic slowdown. Container-shipping's operating expense increased to $896 million, including its portion of the productivity charge of $67 million, again primarily relating to labor reductions. Also contributing to increased operating expense were higher handling costs associated with the rise in container volume.
 Operating income for the barge unit declined $5 million in the quarter to $8 million, due to sharp declines in grain traffic. Although credits were granted to the Commonwealth of Independent States (formerly the U.S.S.R.), these credits were used to purchase wheat, which is shipped predominantly by other modes of transportation, rather than corn and soybeans, which primarily move by the inland waterway system to The Gulf of Mexico. Also contributing to the decline were lower sales at the company's marine construction unit.
 The non-transportation group reported an operating loss of $7 million for the fourth quarter of 1991, including its $41 million portion of the 1991 productivity charge. Excluding the charge, fourth- quarter operating income for the group fell to $34 million, $3 million below the prior-year level, due primarily to lower real estate sales.
 Other income rose $2 million to $24 million, as the gain on the sale of RF&P stock was essentially even with gains reported in the fourth quarter of 1990. After income taxes and minority interest, the RF&P gain was $8 million, 8 cents per share. Interest expense fell $7 million as a result of lower debt levels and declining interest rates.
 CSX Corporation, headquartered in Richmond, Va., is an international transportation company offering a variety of rail, container-shipping, intermodal, trucking and barge services.
 (E) On Jan. 8, 1992, CSX Corporation reported that its results for the fourth quarter of 1991 would reflect a productivity charge estimated to be $755 million, or $490 million, $4.80 per share, after taxes. The company also announced it was adopting FASB Statement No. 106, effective Jan. 1, 1991, and recognizing a pretax liability of $318 million, which on a cumulative after-tax basis would decrease 1991 net earnings by $196 million, $1.95 per share, for prior years and by $4 million, 4 cents per share, for 1991.
 CSX CORPORATION AND SUBSIDIARIES
 Consolidated Statement of Earnings
 (Millions of Dollars, Except Per Share Amounts)
 Periods ended Fourth Quarter Years
 Dec. 31 1991 1990 1991 1990
 Operating Revenue:
 Transportation $2,214 $2,118 $8,419 $7,947
 Non-Transportation 62 69 217 258
 Total 2,276 2,187 8,636 8,205
 Operating Expense:
 Transportation 1,986 1,912 7,643 7,195
 Non-Transportation 28 32 139 142
 Productivity/Restructuring Charge (A) 755 --- 755 53
 Total 2,769 1,944 8,537 7,390
 Operating Income (Loss) (493) 243 99 815
 Other Income 24 22 94 41
 Interest Expense 74 81 306 319
 Earnings (Loss) from Continuing
 Operations Before Income Taxes (543) 184 (113) 537
 Income Tax Expense (Benefit) (187) 55 (37) 172
 Earnings (Loss) from Cont. Operations (356) 129 (76) 365
 Discontinued Operations, Net of Income Taxes: (C)
 Earnings (Loss) from Energy Segment --- --- --- (1)
 Gain on Disposition
 of Energy Segment Assets --- --- --- 52
 Earnings (Loss) before Cumulative Effect
 of Change in Accounting (356) 129 (76) 416
 Cumulative Effect on Years Prior to 1991
 of Change in Accounting for Post-Retirement
 Benefits Other than Pensions (B) --- --- (196) ---
 Net Earnings (Loss) $(356) $129 $(272) $416
 Earnings (Loss) Per Share: (D)
 From Continuing Operations $(3.47) $1.31 $(.75) $3.63
 From Discontinued Operations:
 Earnings (Loss) from Energy Segment --- --- --- (.01)
 Gain on Disposition
 of Energy Segment Assets --- --- --- .53
 Earnings (Loss) Per Share before Cumulative
 Effect of Change in Accounting (3.47) 1.31 (.75) 4.15
 Cumulative Effect on Years Prior to 1991
 of Change in Accounting for Post-Retirement
 Benefits Other than Pensions --- --- (1.95) ---
 Earnings (Loss) Per Share $(3.47) $1.31 $(2.70) $4.15
 Average Common Shares Outstanding
 (Thousands) 102,287 98,488 100,489 98,252
 Common Shares Outstanding at End of Period
 (Thousands) 102,378 98,540 102,378 98,540
 Cash Dividends Paid Per Common Share $.38 $.35 $1.43 $1.40
 See Accompanying Notes to Consolidated Financial Statements.
 CSX CORPORATION AND SUBSIDIARIES
 Consolidated Statement of Cash Flows
 (Millions of Dollars)
 Years ended Dec. 31 1991 1990
 Operating Activities
 Earnings (Loss) from Continuing Operations $(76) $365
 Adjustments to Reconcile Earnings to
 Cash Provided by Operating Activities
 Depreciation 501 473
 Deferred Income Taxes (165) 106
 Productivity/Restructuring Charge - Provision 755 53
 - Payments (93) (186)
 Net Gains on Investment Transactions (75) ---
 Other Operating Activities (40) (15)
 Changes in Operating Assets and Liabilities 59 82
 Cash Provided by Continuing Operations 866 878
 Cash Provided by Discontinued Operations --- 11
 Cash Provided by Operating Activities 866 889
 Investing Activities
 Property Additions (864) (927)
 Proceeds from Sales of Affiliates 203 34
 Proceeds from Sale-Leaseback Transactions --- 381
 Acquisition and Reconstruction Costs for
 Sale-Leaseback Transactions --- (259)
 Short-Term Investments - Net 46 (72)
 Other Investing Activities 26 (4)
 Cash Used by Investing Activities (589) (847)
 Financing Activities
 Short-Term Debt - Net (128) (107)
 Long-Term Debt Issued 379 562
 Long-Term Debt Repaid (431) (264)
 Cash Dividends Paid (144) (147)
 Preferred Stock Redeemed --- (150)
 Other Financing Activities 41 10
 Cash Used by Financing Activities (283) (96)
 Cash, Cash Equivalents and Short-Term Investments
 Decrease in Cash and Cash Equivalents (6) (54)
 Cash and Cash Equivalents at Beginning of Period 296 350
 Cash and Cash Equivalents at End of Period 290 296
 Short-Term Investments at End of Period 175 313
 Cash, Cash Equivalents and Short-Term
 Investments at End of Period $465 $609
 See Accompanying Notes to Consolidated Financial Statements.
 CSX CORPORATION AND SUBSIDIARIES
 Consolidated Statement of Financial Position
 (Millions of Dollars)
 Dec. 31 1991 1990
 Assets
 Current Assets
 Cash, Cash Equivalents
 and Short-Term Investments $465 $609
 Accounts Receivable 728 728
 Materials and Supplies 206 257
 Other Current Assets 136 131
 Total Current Assets 1,535 1,725
 Properties and Other Assets
 Properties 15,176 14,927
 Less Accumulated Depreciation 4,999 4,936
 Properties - Net 10,177 9,991
 Affiliates and Other Companies 238 223
 Other Assets 848 865
 Total Properties and Other Assets 11,263 11,079
 Total Assets $12,798 $12,804
 Liabilities and Shareholders' Equity
 Current Liabilities
 Accounts Payable and
 Other Current Liabilities $2,079 $1,946
 Current Maturities of Long-Term Debt 230 261
 Short-Term Debt 168 96
 Total Current Liabilities 2,477 2,303
 Long-Term Debt 2,804 3,025
 Deferred Income Taxes 2,221 2,534
 Long-Term Liabilities and Deferred Gains 2,114 1,401
 Shareholders' Equity
 Common Stock 102 99
 Other Capital 1,217 1,160
 Retained Earnings 1,863 2,282
 Total Shareholders' Equity 3,182 3,541
 Total Liabilities and
 Shareholders' Equity $12,798 $12,804
 Notes to Consolidated Financial Statements
 (A) On Jan. 8, 1992, the company announced a $755 million pretax productivity charge covering work force reductions, productivity improvements and cost reductions at its major transportation units. The pretax charge includes provisions for separation pay and related liabilities of $634 million and $121 million for various costs and claims which are expected to result from litigation, consolidation of terminal operations and other negotiated settlements. The productivity charge reduced 1991 net earnings by $490 million, $4.80 per share in the fourth quarter and $4.88 per share for the full year.
 (B) The company adopted, effective Jan. 1, 1991, Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Post-Retirement Benefits Other than Pensions," issued in December 1990. Under the accrual method specified by SFAS No. 106, the total future cost of providing post-retirement benefits other than pensions (OPEBs) is estimated and recognized as expense over the employees' requiste service period. The pay-as-you-go method, used in years prior to 1991, recognized OPEBs expense on a cash basis.
 The change from the pay-as-you-go method to the accrual method of accounting increased 1991 net periodic post-retirement benefit expense by $6 million and decreased the company's 1991 net earnings $4 million, 4 cents per share, before the cumulative effect of the change in accounting. In addition, net earnings for 1991 were decreased by $196 million, $1.95 per share, by the cumulative effect of the change in accounting related to years prior to 1991, which were not restated.
 (C) In March 1990, the stock of CSX Energy Corporation was sold to Enron Gas Processing Company, a subsidiary of Enron Corp. The sale resulted in an after-tax gain of $52 million, 53 cents per share and is included in discontinued operations.
 The company has substantially eliminated its energy segment. Accordingly, the financial statements reflect as discontinued operations the operating results, as well as the gain on the disposition of the energy segment assets.
 (D) Earnings per share are based on the weighted average of 102,286,578 shares outstanding for the fourth quarter of 1991 and 98,488,056 shares for 1990, and 100,488,655 shares for the year 1991 and 98,252,377 shares for 1990. Earnings per share are computed after giving effect to preferred stock dividends of $8.3 million for the year 1990. Preferred stock dividends did not impact 1991 or fourth quarter 1990 earnings per share calculations due to the redemption of the Market Auction Preferred Stock in August 1990. Dilution, which could result if all outstanding common stock equivalents were exercised, is not significant.
 -0- 1/22/92
 /CONTACT: Thomas E. Hoppin or Suzanne S. Walston or CSX, 804-782-1406/
 (CSX) CO: CSX Corporation ST: Virginia IN: TRN SU: ERN


JS-LJ -- PH041 -- 2443 01/22/92 16:00 EST
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