Outlook for 2004
- Improving economy
- Carload growth exceeding plan
- Higher fuel prices in 2004
- $1.28/gallon revised guidance for 2H 2004 vs. $1.01/gallon budget
- Significant acquisition opportunities in North America
- i.e., Chicago, Fort Wayne & Eastern
- Higher casualty expense in 1H 2004
- Diluted shares outstanding increase to 38 million from 35 million in 2H 2004
- Results of Arizona & Eastern Railway moved to discontinued operations
- Cautioning potential Class I congestion and service issues in 2H 2004
* Excludes $0.16 per diluted share related to CEO retirement charge
**Free cash flow from continuing operations is defined as operating income plus depreciation and amortization and the net book value portion of asset sales less capital expenditures, cash interest and cash taxes