CSX's Disappointing Outlook Weighs on Rail Companies

By Kimberly Chin

CSX Corp.'s (CSX) weak guidance Tuesday cast a dark cloud over other railway companies as the sector deals with pressure from trade tensions and weakening parts of the industrial economy.

CSX's shares were off 9.2%, Union Pacific Corp. (UNP) was down 9% and Norfolk Southern Corp. (NSC) fell 12% in trading Wednesday morning.

CSX said it continued to experience weaker-than-expected shipping volumes for its industrial customers and saw little sign for improvement.

Lower shipping volumes for metals, equipment and thermal coal exports negatively contributed to weaker overall volumes, as well as lower fertilizer volumes, which were hurt by wet weather conditions, Cowen & Co analysts said.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

July 17, 2019 11:19 ET (15:19 GMT)

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