CSX railroad says lingering coal weakness, one-time 2013 gains make growth targets hard to hit
OMAHA, Neb. – CSX railroad is warning that it will be more difficult to reach its own profit targets for double-digit growth over the next two years because of ongoing weak demand for coal and because last year’s results were so strong.
CSX said Thursday that the railroad benefited last year from one-time gains from real estate sales and damage payments from utilities that didn’t ship enough coal under their contracts.
Chief Financial Officer Fredrik Eliasson says those factors will make it more difficult to deliver on CSX’s projected 10 per cent to 15 per cent growth in earnings per share from 2013 through 2015.
The company’s fourth-quarter earnings declined 5 per cent to $426 million on $3 billion revenue, which was short of Wall Street expectations.
Company shares are down 7 per cent in premarket trading.
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