The Company ended 1Q11 with $534.0 million in cash and cash equivalents versus $993.0 million in 1Q10.

During 1Q11, CSX repurchased $300.0 million of shares and completed $3 billion share repurchase program.

Management maintained the previously projected capital plan of $2.0 billion for FY11. Approximately two-thirds of this amount is to be investment in the Company's infrastructure and share repurchase, and the remaining will be for strategic and regulatory investments.
 

• Cyclical Market: As the rail business is cyclical, a slowdown in freight demand diminishes its capacity and pressure pricing.

• Competition: CSX faces competition in pricing, service, reliability, and other factors from railroads and motor carriers that operate similar routes across its service area, and to a lesser extent, from barges, ships, and pipelines.

• Significant Coal Exposure: Coal is one of the rail's largest and most profitable commodities. Increased environment regulation pressure would negatively impact long-term coal demand. Additionally, low natural gas prices (a substitute for coal in electricity production) tend to correlate to lower coal usage.

• Macro Factors: Rail carriers are highly sensitive to the macroeconomic environment, and are subject to risk from fluctuating fuel prices, fuel hedges, bad weather, strikes and other labor actions, and government regulation.