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CEO Michael Ward On CSX Q2 Results Chugging Past Analysts' Estimates (CSX)

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CEO Michael Ward On CSX Q2 Results Chugging Past Analysts' Estimates CSX

President, Chairman and CEO of CSX (NYSE: CSX) Michael Ward appeared on CNBC's Squawk Box to discuss the company's strong Q2 results.

CSX came in at $0.52 EPS, both over analysts' estimates and last year's Q2 results. Revenue came in at $3.07, toppling estimates of $3.02 billion while also surpassing last year's results.

Ward said that the company only focuses on what it can control- service, safety, and productivity.

"We're at record levels in the service we're providing to our costumers. We're going to have productivity of $150 million this year," said Ward.

Related: CSX Rises After Beating Q2 Estimates (CSX)

He noted that they must "grow sufficiently" to tackle the challenges seen in the coal industry, one of the main products that CSX transports.

In coal, Ward said that they expect domestic volumes to be down five to 10 percent for the full year.

"We think that is where it begins to plateau," said Ward.

In terms of the export market, they still expect to deliver 40 million tons of coal.

"While we're at reduced levels of coal, we're able to grow our other markets more than enough to offset that," said Ward.

"Our coal was down about six percent this quarter, but our other markets grew overall about three percent, and on a revenue basis we came in two percent higher."

Their domestic volumes over this quarter for intermodal transport were up by four percent, an all-time record for CSX, said Ward. He went on to say that truckers are continuing to work with the company, strengthening their intermodal product.

Intermodal is currently being driven by high fuel prices and driver shortages in trucking. This has given the trucking companies an incentive for working with CSX on expanding intermodal efforts, while giving drivers more flexible schedules and more nights at home with their families, said Ward.

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