MIAMI — UBS Warburg on Thursday said the strong coal shipments which had been sustaining many railroads during the U.S. recession were now weakening and trimmed full-year 2002 profits forecasts for four big railroads, according to a wire service report.
“Coal accounts for almost one-quarter of sector sales,” analyst Rick Paterson said in a research note issued after contacts with coal producers, electric utilities, coal-hauling barge lines, and the railroads.
“We believe the first half of 2002 will see declines of zero-to-5 percent for the western carriers: Union Pacific (UNP) and Burlington Northern Santa Fe (BNI); and 5-10 percent for the eastern railroads: CSX (CSX) and Norfolk Southern (NSC).”
Paterson said his new estimates were $4.30, or three cents less, for Union Pacific; $2.32, down from $2.35, for Burlington Northern; $2.20, instead of $2.25 for CSX; and $1.15, or 3 cents less, for Norfolk Southern.