Q1 2014 revenue grew 2% to $3 billion on volume increases of 3%, with strength in the intermodal and merchandise markets offsetting declines in coal.

Operating income fell 16% to $739 million and the operating ratio increased 520 basis points to 75.5%, primarily due to the impact of harsh weather.

CSX says it expects modest full-year earnings growth for 2014 on the back of broad-based merchandise and intermodal gains and an improving domestic coal environment.

In addition, the company remains confident in its ability to sustain double-digit earnings growth and margin expansion for its shareholders in 2015.

The company said it expected to sustain a mid-60s operating ratio long-term.

CSX also announced that its board of directors approved a 7% increase in the company's quarterly dividend to 16c per share, payable on June 13, 2014.

This announcement builds on 11 increases over the past eight years, representing a 20% compound annual growth rate during that time.