Dear Fellow Shareholders,
CSX produced excellent financial results in 2022 and finished the year in a strong position to leverage service improvement and build upon its momentum to grow the business. Across all stakeholder groups β customers, employees, investors, and the public β we achieved important objectives and overcame significant challenges. For the first time since the pandemic disrupted supply chains and tightened labor markets, we re-established the momentum that will enable our company to fully realize the potential of our proven operating model centered on safety, service, efficiency, and people.
For our shareholders, we increased earnings per share 16% on the strength of a 19% increase in revenue to $14.9 billion, an 8% increase in operating income to $6 billion, and a 10% increase in net earnings to $4.2 billion. We finished 2022 with a full-year operating ratio of 59.5%, as we absorbed higher expenses related to inflation and labor.
For our customers, we worked with great urgency and resolve to hire train crew employees to handle their unmet demand for rail service. By the end of the year, we had nearly reached our target of 7,000 active train-and-engine employees and were on track to eclipse that goal in the first days of 2023. Our successful hiring campaign significantly increased our ability to handle customer business and supported service improvements that gained increasing momentum in the fourth quarter, putting us on a path to re-attain β and surpass β the performance highs we reached prior to the pandemic. We also completed the acquisition of Pan Am Railways, significantly expanding our reach in New England markets, and we introduced innovative supply chain solutions offering dock-to-dock service.
For our employees, we took concrete actions to improve labor-management relations as our industry engaged in a difficult round of national bargaining. The national rail labor agreement signed in November provides a 24% wage increase during the five-year period from 2020 through 2024. Here at CSX, we introduced several provisions to ease punitive attendance policies as well as improve the work environment and quality of life for front-line employees. Perhaps most importantly, we advanced our ONE CSX workplace culture built on teamwork across all levels, all departments, and all locations. ONE CSX emphasizes communication and the importance of every employee in delivering safe, reliable service. It begins with a strong safety culture and recognizes the contributions of employees who move freight, maintain our track and equipment, and create value for our customers.
For the public, we continued to introduce innovative technologies that reduce emissions and offer the most sustainable mode of freight transportation on land. We worked with customers to help them achieve their carbon-reduction goals by switching from highway to rail transportation, which also reduces highway congestion. We also strengthened our relationships with regulatory agencies and public officials through cooperative actions, which included a key agreement that will restore Amtrak passenger rail service in the Gulf Coast corridor. We continued to advance our Pride in Service community investment initiative, through which we have made significant financial and volunteerism contributions in support of our nation's military community and first responders.
On a personal note, I would like to thank all of our stakeholder groups β and especially CSX employees β for welcoming me as the leader of this proud and vital company. Since arriving in September, I have been impressed by the quality of the leadership team and the tremendous commitment of our employees who serve our customers. Visiting more than 20 locations in my first 100 days, I met a workforce ready and eager to provide the best service product our industry has ever seen. With great optimism and as ONE CSX, we will deliver.
Sincerely,
Joe Hinrichs
President and Chief Executive Officer
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