CSX is citing low demand for coal as one of the reasons it may not reach its expectations of 10% to 15% for 2013 to 2015. The company also cited one-time deals in 2012 that led to strong gains for that year. The company also saw its fourth-quarter earnings decrease by 5% and failed to meet Wall Street’s expectations, reports The Associated Press.
“The thought of coal ever coming back to what it was or adding meaningfully to growth, that’s not going to happen,” Logan Purk, an Edward Jones analyst, told Businessweek. “Coal will just continue to be in a somewhat secular decline, and that’s largely due to the abundance of natural gas in the U.S.”
Despite its profit warning, CSX expects to see around a 3% growth in 2014. The railroad company also expects to see a steady increases in shipping volume during it’s current quarter, the Associated Press notes.
CSX shares dropped 7% as of Thursday afternoon