(The Associated Press circulated the following story on April 11.)
NEW YORK — Shares of railroad operators closed modestly lower Wednesday, as the dust continued to settle after billionaire Warren Buffett said he’s investing in the sector and labor troubles in Canada returned.
On Monday Buffett’s company, Berkshire Hathaway Inc. became the largest shareholder in western railroad Burlington Northern Santa Fe Corp. He also invested in two other railroads that went unnamed. Shares of Burlington Northern, Union Pacific Corp. and CSX Corp. reached 52-week highs on the news, while the other three major rails also notched gains.
The group traded lower on Wednesday, with the biggest development a renewed strike threat by union employees at Canadian National Railway Co. Conductors and yard workers rejected a one-year labor agreement, raising the potential for rotational walkouts.
When a full-blown walkout occurred earlier this year, it led to backups at ports in western Canada that also affected the operations of Canadian Pacific Railway Ltd. Edward Wolfe, an analyst with Bear Stearns, expects any strike to end quickly before the Canadian government intervenes with back-to-work orders.
Here is how the major railroad stocks ended Wednesday:
Canadian National, down 18 cents at $46.44
Canadian Pacific, up 34 cents at $58.76
Burlington Northern, down 34 cents at $87.65
Union Pacific, down $1.10 at $106.41
CSX, down 24 cents at $41.72
Norfolk Southern Corp., down 88 cents at $51.86