CSX Reports Record Second Quarter Earnings

                         Second Quarter Highlights:

        - Earnings per share from continuing operations increase 31%

    - All-time records in revenues and operating income, up 15% and 17%

                                respectively

              - Safety and service performance remains strong



    JACKSONVILLE, Fla., July 15 /EMWNews-FirstCall/ -- CSX Corporation

(NYSE: CSX) today reported second quarter 2008 earnings of $385 million, or

a record 93 cents per share. Last year CSX reported second quarter earnings

of $324 million, or 71 cents per share.



    Second quarter 2008 results included 4 cents per share associated with

the resolution of certain tax matters. On a comparable basis, excluding

this item, second quarter EPS was up 25 percent from a year ago. (See table

below for reconciliation of quarter items to reported numbers.)



    "CSX continues to deliver significant value for shareholders and

demonstrate the secular strength of our business," said Michael Ward,

chairman, president and CEO. "The strong earnings performance delivered by

this team was supported by all-time records in revenue and operating

income, despite the effects of a softer economy."



    Sustained strong demand for export coal, grain, ethanol, metals and

phosphates and fertilizers, as well as solid yield management, continued to

lead significant revenue growth across CSX's markets. Revenue increased in

eight of the company's ten markets resulting in overall quarterly revenues

of $2.9 billion, a 15 percent increase over the same period last year.



    CSX produced quarterly operating income of $717 million, up 17 percent

over the $612 million reported last year. The company's continued focus on

productivity and cost control helped to offset the significant increase in

fuel costs, driving its operating ratio to 75.3 percent for the quarter.



    "We are achieving the company's vision, quickly taking this company's

results to industry leading positions," said Ward. "This success is

propelled by our employees every day delivering exceptional customer

service, safety, innovation and a balanced approach to managing capital

that drives shareholder value and positions the company to leverage future

demand."



    Reflecting the company's strong second quarter performance and the

underlying strength of its business, CSX continues to target the upper end

of its previously announced 2008 EPS guidance of $3.40 - $3.60 on a

comparable basis.








    GAAP RECONCILIATION (1)

    (Dollars in millions, except per share amounts)



                                             Second Quarter

                                      2008         2007       Improvement



    Earnings Per Share              $ 0.93        $ 0.71          31%



    Less Income Tax Benefits         (0.04)            -



    Comparable Earnings Per Share     0.89        $ 0.71          25%





    CSX Corporation, based in Jacksonville, Fla., is a leading

transportation company providing rail, intermodal and rail-to-truck

transload services. The company's transportation network spans

approximately 21,000 miles with service to 23 eastern states and the

District of Columbia, and connects to more than 70 ocean, river and lake

ports.



    This earnings announcement, as well as a package of detailed financial

information, is contained in the CSX Quarterly Financial Report available

on the company's website at http://investors.csx.com in the Investors

section and on Form 8-K with the Securities and Exchange Commission

("SEC").



    CSX executives will conduct a quarterly earnings conference call with

the investment community on July 16, 2008 at 8:30 a.m. ET. Investors, media

and the public may listen to the conference call by dialing 888-327-6279

(888-EARN-CSX) and asking for the CSX earnings call. (Callers outside the

U.S., dial 773-756-0199). Participants should dial in 10 minutes prior to

the call. In conjunction with the call, a live webcast will be accessible

and presentation materials will be posted on the company's website at

http://investors.csx.com. Following the earnings call, an internet replay

of the presentation will be archived on the company website.



    GAAP Reconciliation(1)



    CSX reports its financial results in accordance with generally accepted

accounting principles ("GAAP"). However, management believes that certain

non-GAAP financial measures used to manage the company's business that fall

within the meaning of Regulation G (Disclosure of Non-GAAP Financial

Measures) by the SEC may provide users of the financial information with

additional meaningful comparisons to prior reported results.



    In press releases and presentation slides for stock analysts, CSX has

provided financial information adjusted for certain items, which are

non-GAAP financial measures. The company's management evaluates its

business and makes certain operating decisions (e.g., budgeting,

forecasting, employee compensation, asset management and resource

allocation) using these adjusted numbers.



    Likewise, this information facilitates comparisons to financial results

that are directly associated with ongoing business operations as well as

provides comparable historical information. Lastly, earnings forecasts

prepared by stock analysts and other third parties generally exclude the

effects of items that are difficult to predict or measure in advance and

are not directly related to CSX's ongoing operations. A reconciliation

between GAAP and the non-GAAP measure is provided above. These non-GAAP

measures should not be considered a substitute for GAAP measures.



    Forward-looking statements



    This information and other statements by the company contain

forward-looking statements within the meaning of the Private Securities

Litigation Reform Act with respect to, among other items: projections and

estimates of earnings, revenues, cost-savings, expenses, or other financial

items; statements of management's plans, strategies and objectives for

future operation, and management's expectations as to future performance

and operations and the time by which objectives will be achieved;

statements concerning proposed new products and services; and statements

regarding future economic, industry or market conditions or performance.

Forward-looking statements are typically identified by words or phrases

such as "believe," "expect," "anticipate," "project," "estimate" and

similar expressions. Forward-looking statements speak only as of the date

they are made, and the company undertakes no obligation to update or revise

any forward-looking statement. If the company does update any

forward-looking statement, no inference should be drawn that the company

will make additional updates with respect to that statement or any other

forward-looking statements.



    Forward-looking statements are subject to a number of risks and

uncertainties, and actual performance or results could differ materially

from that anticipated by these forward-looking statements. Factors that may

cause actual results to differ materially from those contemplated by these

forward-looking statements include, among others; (i) the company's success

in implementing its financial and operational initiatives; (ii) changes in

domestic or international economic or business conditions, including those

affecting the rail industry (such as the impact of industry competition,

conditions, performance and consolidation); (iii) legislative or regulatory

changes; (iv) the inherent business risks associated with safety and

security; and (v) the outcome of claims and litigation involving or

affecting the company.



    Other important assumptions and factors that could cause actual results

to differ materially from those in the forward-looking statements are

specified in the company's SEC reports, accessible on the SEC's website at

http://www.sec.gov and the company's website at http://www.csx.com .