Railway operator, Norfolk Southern, suffered a 33% drop in its coal business in 2Q15 as the amount of coal it carried was hit by a continuing drop in demand for the fuel from the power sector.
The company’s coal revenue stood at US$ 453 million for the quarter with volumes down 21% driven by declines of 23% in shipments to domestic utilities and 38% in shipments for export.
“While we face short-term pressure, particularly as we clear fuel surcharge revenue and coal headwinds, Norfolk Southern is well positioned to continue improving service, which will reduce costs and add value to our customers,” said CEO James Squires. “Growth within the intermodal franchise, consumer spending, housing-related momentum and improved manufacturing activity all support an optimistic longer-term outlook.”
Read the article online at: https://www.worldcoal.com/handling/28072015/norfolk-southern-coal-revenues-down-on-lower-demand-2641/