Wednesday, October 17, 2012
CSX falls on decline in coal and agriculture markets
Shares in CSX dropped after the company announced coal and agriculture shipments, two of its strongest markets, will be down this quarter due to the low cost natural gas and the U.S. drought.
The U.S. railroad forecasts a neutral outlook through December, as a third of its businesses will experience "unfavorable conditions," according to Clarence Gooden, CSX chief commercial officer.
"We anticipate total volume will be flat year-over-year," Gooden said on an investor conference call. "Utility coal volume will continue to be challenged by low gas prices and high utility stockpiles. Although we expect these headwinds to moderate somewhat through the balance of the year, they will continue well into 2013."
CSX's net income in quarter three was $455 million, or 44 cents a share, according to a company statement. That was better than the average estimates of $447.6 million, or 43 cents, from a Bloomberg analyst survey.
CSX fell 4.1 percent to $20.75 at 9:35 a.m. Wednesday on the New York Stock Exchange.
For more of the Businessweek story: businessweek.com
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