RICHMOND, Va. — Shares of CSX Corp. fell by 16 percent yesterday on news that third-quarter results would be hurt by lower coal shipments over the summer, the Richmond Times-Dispatch reported.
Richmond-based CSX stock closed down $5.60 at $29.03 yesterday after the railroad and shipping company said its rail unit’s profit was down by $35 million. Results will be posted Oct. 24.
John W. Snow, chairman and chief executive officer, said electric-utility customers have not used as much coal as expected despite a relatively warm summer.
He predicted coal shipments would rise in the final three months of the year, helping to boost annual revenue.
Despite the slowdown, CSX said its earnings would be “well above” the 47 cents a share in last year’s third quarter, spokesman Dan Murphy said.
Murphy declined to say whether the company would hit the average 66 cents a share estimate by Thomson First Call.
After the report, some industry analysts downgraded CSX to “hold” from “strong buy,” while others advised investors to buy the stock.
Another key railroad stock — Canadian National Railway Co. — dropped by 6 percent also on the New York Stock Exchange on news its bulk commodity shipments declined in the third quarter.
Shares of the Canadian company closed at $39.8, down $2.50 per share.