On the Line: CSX CEO Michael Ward
Some of the greenest companies in the world are actually the oldest. You might not think of the rails as green in the same way solar companies are, but railroads remain the most environmentally friendly and efficient modes of land transportation. And they’re profitable, too.
Speaking to Cramer on Thursday’s Mad Money, CSX CEO Michael Ward painted a picture of a company firing on all cylinders without losing sight of its ecological responsibility.
The carbon emissions that CSX saves each year are roughly the equivalent of taking one million cars off the roads, Ward said. And new technology employed on the company’s locomotives have allowed it to save 900,000 gallons of fuel last year, with the hopes of crossing the one million mark in 2008. As oil flirts with $120, that’s not just environmentally responsible – it’s fiscally responsible.
CSX has always been known for its exposure to the automotive and housing sectors, Cramer noted, but Ward said that the company’s diverse portfolio of freight has helped offset lagging shipments of home and auto materials. Specifically, freight composed of coal, fertilizer and other agricultural chemicals, ethanol and metals have helped make up the difference. Ward said that when the housing and automotive sectors rebound – and he believes they will – CSX will be able to deliver even better earnings to its shareholders.
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