(The Associated Press circulated the following article on September 15.)
JACKSONVILLE, Fla. — CSX Corp. on Thursday said it expects third-quarter operating income to be hurt by $25 million in business interruption and other costs from Hurricane Katrina.
The rail transportation company said its insurance coverage exceeds its anticipated $250 million in storm expenses, including costs to rebuild rail infrastructure, business interruption losses, and other damage costs. CSX has a $25 million self-insured retention.
The company said it is still providing service through rerouted traffic around storm-affected areas.
“Service to local customers will also be restored as repairs are made in phases over an estimated six-month period,” said Tony Ingram, chief operating officer, in a statement. “The rerouted trains will be brought back to the original lines when all major repairs are completed.”
The company said it is still assessing the operating and financial impact of the storm.
CSX shares rose 22 cents to $44.32 in afternoon trading on the New York Stock Exchange.