CSX lowers earnings expectations
CSX Corp. is anticipating lower revenue for the rest of the year on the back of challenges to the coal industry.
On the back of a record year in 2014, the company had expected double-digit earnings per share growth and margin expansion. Worcester is the New England rail freight rail hub for the intermodal transportation company, headquartered in Jacksonville, Fla. CSX also has operations in Westborough.
"While we continue to target flat earnings per share for the third quarter, achieving that estimate will be more challenging given the weaker than expected volumes," said the company’s Chief Sales and Marketing Officer Fredrik Eliasson at the Cowen and Company 8th Annual Global Transportation Conference in Boston. "In addition, with the volume declines this quarter and ongoing challenges to coal that are expected to continue in the fourth quarter, CSX now expects full-year earnings per share growth in the mid-single digits."
The company released Eliasson’s statement from the conference along with additional information about the company’s overall rail volume, which it said was down approximately 2 percent. Both the domestic coal and merchandise market were tracking below the company’s original third-quarter expectations, according to the company.
Domestic coal revenue declines may exceed $400 million, according to CSX.
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