(The Associated Press circulated the following on April 22, 2009.)
WASHINGTON, D.C. — Analysts expect Burlington Northern Santa Fe Corp.’s first-quarter earnings per-share to drop 26 percent from a year ago, as an already battered economy worsened in the first three months of this year.
The Fort Worth, Texas-based company, the nation’s second-largest railroad operator, is expected to release results after the market closes on Thursday.
Last week, analysts speculated that U.S. railroad operators would surprise Wall Street with better-than-expected results. Now, they’re not so sure.
CSX Corp., the first rail operator to report, stunned analysts with a first-quarter profit well above consensus expectations. Despite earnings falling 30 percent from a year earlier, the Jacksonville, Fla.-based company managed to slash costs to partially offset the shortfall in demand.
But on Wednesday it was Norfolk Southern Corp.’s turn. CSX’s eastern rival said profit dropped 39 percent from a year earlier and fell short of analysts’ forecasts.
All U.S. railroads faced deteriorating demand in the first quarter. According to the Association of American Railroads, the industry’s main trade group, total U.S. rail carloads fell 16.3 percent in the first three months of 2009 compared with a year earlier.
But rails have shown the ability in past quarters to balance slowing demand with cost cuts and higher prices.