The higher than expected decline in domestic coal movements during the fourth quarter of 2015 caused the railway to lower its full-year earnings per share projection.
CSX Corporation has decreased its full-year earnings per share outlook as coal movements during the fourth quarter of 2015 have declined even more than initially expected, the railway’s Chief Financial Officer Frank Lonegro told investors yesterday at the Credit Suisse Global Industrials Conference in Palm Beach, Fla.
The Jacksonville, Fla.-based railway now expects a full-year EPS growth of approximately 3 percent, which still includes an anticipated fourth quarter property sale worth about $0.05 per share, Lonegro said.
CSX expects to transport approximately 30 million tons of coal for the full year.
Despite headwinds from the energy market, the railway said earlier this month it expects a strong intermodal segment in 2016, as it “continues to drive highway-to-rail conversions to capture a share of the estimated 9 million loads in the East that are well-positioned for intermodal service. At the same time, efficient service for automotive customers will lead industrial market growth as North American Light Vehicle production increases.
“CSX continues to expect meaningful margin expansion in 2015 and a mid-60s operating ratio longer term,” the railway said. “That performance is delivered in a dynamic environment in which low commodity prices and the strength of the U.S. dollar have impacted many of the markets served by CSX, especially coal.”
CSX decreases full-year EPS outlook
