Third Quarter

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Railway Operating Revenues ( Millions)
Third Quarter
Nine Months
4,792
4,689
1,598
1,598
2002 2003 2002
2003

Change vs. Prior Period --
2
3
Railway Operating RevenueYield Analysis2003 vs.
2002
Third Quarter
Nine Months
4.0
4.0
2.2
1.3
0.9
0.8
--
0.0
0.0
0.8
- 4.0
- 4.0
Carloads Revenue
Revenues Carloads
Revenue Revenues
per Unit

per Unit
4
Railway Operating Expenses ( Millions)
Third Quarter
Nine Months
3,952
3,819
1,287
1,287
2002 2003
2002
2003
Change vs. Prior Period --

3
5
Railway Operating Expense Analysis Third Quarter
2003 vs. 2002 ( Millions)
42
Materials, Services and Rents
Casualties and Other Claims
5
Depreciation
5
2
- 1
Diesel Fuel
Other
Conrail Rents and Services
Compensation and Benefits
- 13
- 40
Net Change -0-
6
Materials, Services Rents Expense
Analysis Third Quarter 2003 vs. 2002 ( Millions)
Equipment Rents
Purchased Services
Materials
- 2
- 16
- 22
Net Decrease 40 Million / 10
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Railway Operating Expense Analysis Third Quarter
2003 vs. 2002 ( Millions)
42
Materials, Services and Rents
Casualties and Other Claims
5
Depreciation
5
2
- 1
Diesel Fuel
Other
Conrail Rents and Services
Compensation and Benefits
- 13
- 40
Net Change -0-
8
Compensation Benefits Analysis Third Quarter
2003 vs. 2002 ( Millions)
Wage Rates 15
Net Increase 42 Million 9
Pension Income 12
Health Welfare Benefits 10
Other Items 5
9
Railway Operating Expense Analysis Third Quarter
2003 vs. 2002 ( Millions)
42
Materials, Services and Rents
Casualties and Other Claims
5
Depreciation
5
2
- 1
Diesel Fuel
Other
Compensation and Benefits
Conrail Rents and Services
- 13
- 40
Net Change -0-
10
Diesel Fuel Cost AnalysisAverage Price Per
Gallon(cents)
2002
2003
86
80
80
77
73
70
67
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
1st Qtr 2nd Qtr 3rd
Qtr 4th Qtr
Change vs. Prior Period
28
14 5
11
Diesel FuelPercentage of Fuel Hedged in 2003
84
83
77
75
1st Qtr 2nd Qtr 3rd Qtr
4th Qtr
Swaps result in 0.76 avg. price per gallon for
hedged fuel
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Diesel Fuel Gallons Hedged Average Price Per
Gallon in 2003 (as of September 30, 2003)
96.6
95.6
94.1
91.3
79
77
75
74
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Hurricane Isabel ( Millions)
Income Statement
Cash Flow
Lost or Delayed Revenues 3.5 Additional
Expenses (Mostly Labor) 1.5 (1.5) Impact on
Operating Income 5.0 Capital
Expenditures (1.5) Cash Flow (3.0)
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Railway Operating Expense Analysis Nine Months
Ended September 30, 2003 vs. 2002 ( Millions)
83
37
Materials, Services and Rents
Conrail Rents and Services
13
9
Depreciation
- 1
- 2
- 6
Other
Diesel Fuel
Compensation and Benefits
Casualties and Other Claims
Net Increase 133 Million / 3
15
Compensation Benefits Analysis Nine Months
Ended September 30, 2003 vs. 2002 ( Millions)
Pension Income 34
Net Increase 83 Million 6
Health Welfare Benefits 30
Wage Rates 28
Other Items 9
16
Railway Operating Expense Analysis Nine Months
Ended September 30, 2003 vs. 2002 ( Millions)
83
37
Materials, Services and Rents
Conrail Rents and Services
13
9
Depreciation
- 1
- 2
- 6
Other
Diesel Fuel
Compensation and Benefits
Casualties and Other Claims
Net Increase 133 Million / 3
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Railway Operating Ratio (Percent)
Third Quarter
Nine Months
80.5
80.5
82.5
81.4
2002 2003
2002
2003
Change vs. Prior Period --

1
18
Income From Railway Operations ( Millions)
Third Quarter
Nine Months
870
840
311
311
2002 2003
2002
2003

Change vs. Prior Period --

- 3
19
Total Other Income (Expense)Third Quarter 2003
vs. 2002 ( Millions)
Change 2003 vs. 2002 Favorable (Unfavorable)
3rd Qtr 2003
3rd Qtr 2002
Other Income - Net Gain on Sale of Property
and Investments 4 3 1 Coal
Royalties 10 11 (1) Accounts Receivable
Sale Fees -- (1) 1 All Other (2) (9) 7
12 4 8 Interest Expense on
Debt (123) (126) 3 Total
(111) (122) 11
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Total Other Income (Expense)Nine Months Ended
September 30, 2003 vs. 2002 ( Millions)
Change 2003 vs. 2002 Favorable (Unfavorable)
Nine Months 2003
Nine Months 2002
Other Income - Net Gain on Sale of Property
and Investments 16 35 (19) Coal
Royalties 29 36 (7) Accounts Receivable
Sale Fees -- (4) 4 All Other 12 (27) 39
57 40 17 Interest Expense on
Debt (373) (390) 17 Total
(316) (350) 34
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Income Before Income Taxes ( Millions)
Third Quarter
Nine Months
524
520
200
189
2002 2003
2002
2003
Change vs. Prior Period 6

1
Excluding discontinued operations and
accounting changes
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Provision For Income Taxes ( Millions)
Third Quarter
Nine Months
189
165
63
63
2002 2003
2002
2003
Change vs. Prior Period --

- 13
Excluding discontinued operations and
accounting changes
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Net Income ( Millions)
Third Quarter
Nine Months
359
331
137
126
2002 2003
2002
2003
Change vs. Prior Period 9
8
Excluding discontinued operations and
accounting changes
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Comparison of Changes in Net Income ( Millions)
3rd Qtr 2003 Variance
Railway Operating Revenues 0 Railway
Operating Expenses 0 Other Income
Net 8 Interest Expense on Debt 3 Provision
for Income Taxes 0 Income from
Continuing Operations 11
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Comparison of Changes in Net Income ( Millions)
3rd Qtr 2003 Variance
Nine Months 2003
Railway Operating Revenues 0 103 Railway
Operating Expenses 0 (133) Other Income
Net 8 17 Interest Expense on
Debt 3 17 Provision for Income Taxes 0 24
Income from Continuing Operations 11 28
Excluding discontinued operations and
accounting changes
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Diluted Earnings Per Share ( Dollars)
Third Quarter
Nine Months
0.92
0.85
0.35
0.32
2002 2003
2002
2003
Change vs. Prior Period 9
8
Excluding discontinued operations and
accounting changes
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