CSX Sees Profit Below Estimates

CSX (CSX) said Monday that it expects fourth-quarter earnings per share to rise roughly 6% from the same period a year earlier on a 4% increase in revenue.

The Jacksonville, Fla., rail company said it would probably earn 63 cents, including a noncash impairment charge of approximately 27 cents a share related to the writedown of its investment in The Greenbrier resort in West Virginia. Excluding the charge, earnings should be about 90 cents.

Revenue will likely be $2.7 billion for the quarter. Operating income, on a comparable basis, is estimated to climb 16% to $692 million. Analysts were expecting a profit of 98 cents and revenue of $2.77 billion.

CSX plans to issue its full fourth-quarter and fiscal 2008 results Jan. 20. Given the current economic environment, particularly the uncertainty facing U.S. manufacturing, the company said it would no longer affirm or provide long-term guidance.

Shares of CSX were down 0.7% at $31.99 in late trading after falling more than 6.5% in the regular session.

Fellow rail companies Canadian Pacific (CP) and Burlington Northern Santa Fe (BNI) were also slightly lower. Norfolk Southern (NSC) and Union Pacific (UNP) were unchanged.

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