CSX railroad expects modest profit growth in 2017

AP News
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Posted: Jan 18, 2017 11:56 AM
CSX railroad expects modest profit growth in 2017

OMAHA, Neb. (AP) — CSX railroad officials expect profits to grow this year as the economy improves modestly, coal demand stabilizes and President-elect Donald Trump pursues reforms.

The Jacksonville, Florida-based railroad offered a somewhat optimistic outlook Wednesday, a day after reporting a $458 million fourth-quarter profit.

CSX CEO Michael Ward says industrial production is picking up, and forecasters predict the economy will grow 2 percent or more this year.

Ward expects CSX to fare well this year with coal demand stabilizing after several years of sharp declines. He predicts CSX's earnings per share will grow at a rate in the low-to-mid-teens in the first quarter.

And Ward says he thinks Trump's proposed tax cuts and regulatory reforms could provide an additional boost to the economy.

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