Norfolk Southern Faces Bleak Short-term Outlook for Coal Shipments

Norfolk Southern Corp. (NYSE:NSC) continues to report double-digit declines in coal shipments, with the declines likely to weigh on the company’s revenues. The declines in the shipments are largely attributed to a contract loss the company suffered earlier in the year. The contract loss led to a 2.2-percent decline in Norfolk Southern’s coal shipment volume and revenue in the third quarter.

As quoted in the market news:

According to Norfolk Southern’s carloading report for the week ending November 22, its fourth quarter to date coal carloads have declined 11.2%, whereas CSX and Union Pacific have reported 10.5% and 9% growth, respectively, over the same period. Though Norfolk Southern’s contract loss can explain at least part of the decline, there may be other factors at play as well that are driving the severe decline.

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