Norfolk Southern warns about lower 3Q profits

Norfolk Southern warns about lower 3Q profits

Norfolk Southern warns about lower 3Q profits

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Associated Press

Posted on September 19, 2012 at 4:59 PM

Updated Wednesday, Sep 19 at 4:59 PM

NORFOLK (AP) -- Norfolk Southern Corp. says a drop in coal shipments and lower fuel surcharge revenue during the third quarter will hurt the railroad's profits.

Norfolk Southern said Wednesday that the railroad expects to report third-quarter earnings between $1.18 and $1.25 per share.

That's well below the $1.63 per share the analysts surveyed by FactSet were expecting, and below the $1.59 per share the railroad reported in last year's quarter.

The railroad says decreases in 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's stock dropped 5 percent, or $3.74, to $68.95 in after-hours trading Wednesday.

AP-WF-09-19-12 2047GMT

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