March 12 U.S. railroad CSX Corp warned
first-quarter earnings would be hit by about 10 cents per share
as a severe winter hit operations and volumes.
The company expects full-year earnings to grow at a more
modest rate than previously forecast, Chief Financial Officer
Fredrik Eliasson said at a JP Morgan conference in New York City
CSX is not the first U.S. railroad to warn about the winter
disrupting operations. Union Pacific, the largest U.S.
railroad, said in January that the weather was causing delays up
to 48 hours.
CSX said demand for coal was likely to get a boost this year
as inventories are close to normal levels after utilities burned
up excess coal through the winter. The company depends on coal
for about a quarter of its revenue.
Analysts on average were expecting earnings of 43 cents per
share for the current quarter, according to Thomson Reuters
The company said it was on target to keep its operating
ratio in the high-60s by 2015. CSX reported an operating ratio
of 71.1 percent in 2013.
CSX shares were marginally down at $28.71 in early trading
on the New York Stock Exchange.