Jan 23 CSX Corp, the No. 2 U.S.
railroad, said a decline in shipment volumes could come to a
halt in the first quarter of 2013 as the fall in domestic coal
shipments is expected to moderate.
First-quarter volumes are likely to be flat year over year,
the company aid on a post-earnings conference call. Volumes fell
3 percent in the fourth quarter.
Shares of the company, which on Tuesday reported a quarterly
profit better than analysts' expectations, rose 5 percent to
$21.78 on Wednesday on the New York Stock Exchange.
U.S. coal shipment will decline 5 percent to 10 percent for
2013, compared with a 29 percent decline in 2012, Chief
Executive Michael Ward said.
Coal export, however, is likely to fall about 16 percent to
40 million tons this year, Ward said.
"Furthermore, we anticipate our rates to be pressured as we
work with producers to keep U.S. coal competitive globally in an
environment where underlying commodity prices for thermal and
metallurgical coal are lower," the CEO said.
Low natural gas prices, high stockpile and weak global
demand have put pressure on coal demand.
Jacksonville, Florida-based CSX relies on coal shipments for
nearly a third of its revenue. Coal revenue fell 14 percent in