(The Associated Press circulated the following on July 23, 2009.)
NEW YORK — Analysts expect the second-quarter profit of railroad operator Burlington Northern Santa Fe Corp. to fall from a year ago. They’re just not sure how much.
Shipping demand was still very weak in the second quarter, although railroads indicated there were signs that volume was approaching its worst point. Industrywide, demand fell 22 percent from a year ago.
Analysts, on average, predict the nation’s second-largest railroad will report a profit of $1.01 per share, according to a poll by Thomson Reuters. That’s down from $1.34 a year ago.
The company has said that while coal demand has leveled off a bit in the second quarter, demand for agricultural, consumer and industrial products — three cornerstones of its business — were similar to weak levels seen in the first three months of this year.
Jacksonville, Fla.-based CSX Corp., the first railroad to report, said its second-quarter earnings fell 20 percent as it collected fewer fuel surcharges and shipments continued to drop. The results still topped Wall Street’s expectations, as the company slashed expenses by 27 percent.
Burlington Northern is set to report after the market closes on Thursday. Burlington’s chief rival, Union Pacific Corp., also reports earnings Thursday.