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Railroad companies including CSX have been hurt by a slump in demand for coal used to generate electricity as power generators increasingly switch to gas. Bloomberg
CSX Corp. said its volume in the current quarter is growing at a faster rate than expected and the railroad operator expects its earnings to increase slightly from the same time last year.
At the UBS Best of Americas conference in London Thursday, Chief Financial Officer Fredrik Eliasson said the crowded and underfunded highway systems are boosting demand for rail transportation.
The Jacksonville, Fla., company said it expects earnings to be slightly above the 45 cents a share recorded a year ago, despite higher costs. Analysts polled by Thomson Reuters are expecting 47 cents a share.
For the 2014, CSX continues to expect modest per-share earnings growth.
The company pointed to recovery in the housing market, a strong harvest and growth in the energy sector as long-term drivers of growth.
CSX has benefited from broad volume growth recently, reporting in July 1.5% higher earnings and a 6.5% increase in revenue for its second quarter.