Norfolk Southern warns about lower 3Q profits
NORFOLK, Va. (AP) — Norfolk Southern Corp. says a drop in coal shipments and lower fuel surcharge revenue during the third quarter will hurt its profits.
The railroad said Wednesday that it expects to report earnings of $1.18 and $1.25 per share for the period. That's well below the $1.63 per share that analysts surveyed by FactSet were expecting, and below the $1.59 per share the railroad reported in last year's quarter.
Norfolk Southern says lower coal and merchandise shipments will reduce revenue by about $120 million over last year. And fuel surcharge revenues are expected to be $80 million lower than last year.
Norfolk Southern shares dropped 5.6 percent, or $4.04, to $68.65 in after-hours trading.