The nation's third-largest railroad- CSX Corp, said Tuesday the economy improved modestly in the fourth-quarter, but its shipping volume dropped from a year ago as demand for coal to produce electricity remained weak.
CSX, based in Jacksonville, Fla., said fourth-quarter net earnings rose 23 percent compared to a year before — a period weighed down by a loss related to the company's sale of the money-losing Greenbrier resort. Excluding that year-ago loss, earnings from enduring operations fell 16 percent.
Shares fell more than 3 percent in after-hours trading, after concluding up 47 cents in the regular session to close at $50.51.
Railroads are seen as gauges for nation's economic health since they carry so many consumer and industrial goods — everything from toys to lumber to trucks. Analysts look to CSX, the first railroad to report fourth-quarter earnings, and its competitors to calculate how the larger economy is faring.
The railroad said gains in its transfers from trucks — a key indicator of consumer spending — and the Automotive segment were more than offset by rejects in shipments of coal and food. Stimulus programs including Cash for Clunkers and inventory restocking aided boost consumer and auto-related segments.
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