OMAHA, Neb. – CSX believes profits will decline for rest of the year as volume continues to slow.
The railroad reiterated a dreary outlook for the year and bleak long-term prospects for coal demand Thursday.
CSX said Wednesday that second-quarter profit tumbled 20 per cent to $445 million with volume sliding 9 per cent. It still beat Wall Street expectations, but that’s because it’s slashing costs.
Chairman and CEO Michael Ward says the railroad is operating in a challenging economic environment.
CSX Corp. expects volume to decline in the mid-to-high single digits in the third quarter.
The railroad still plans to up its capital spending by $300 million, to $2.7 billion, so it can avoid financing charges on some locomotive purchases it originally planned to complete next year.