CSX Sees Profit Below Estimates

CSX (CSX Quote) 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 Quote) and Burlington Northern Santa Fe (BNI Quote) were also slightly lower. Norfolk Southern (NSC Quote) and Union Pacific (UNP Quote) were unchanged.