OMAHA, Neb. (AP) — CSX Corp. expects lower profits in 2016 as weak demand for coal and crude oil persists and the strong U.S. dollar continues to limit exports.
The railroad discussed its outlook for lower freight volume and a difficult year on Wednesday — one day after releasing its fourth-quarter results.
Chairman and CEO Michael Ward says the railroad will continue working to improve productivity and cut about $200 million in expenses, but it’s hard to predict what the industrial economy will do this year.
CSX also plans to reduce its capital spending this year by $100 million to $2.4 billion.
The Jacksonville, Florida-based railroad said Tuesday its fourth-quarter profit declined 5 percent to $466 million, or 48 cents per share.
Its shares fell 3.6 percent to $22.84 in morning trading Wednesday.
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