Reuters - CSX says hurray for low oil prices, now quit puking our stock. Here's the CEO's failed attempt to inject a smidgen of reason into the stupid US stock market:
"By and large, this (lower oil prices) is a good thing for the economy, for CSX and for our customers," Michael Ward told Reuters in an interview. "It will put more money in consumers' pockets and we will pass on less in fuel surcharges to our customers, which will put more money in theirs."And the result?
Late on Tuesday, CSX reported fourth-quarter earnings that met Wall Street expectations and Ward said the railroad expects every quarter in 2015 to be "sequentially better than the one preceding it."
The railroad has also said it will raise prices above the rate of inflation this year as demand continues to rise.
Despite the 50 percent drop in the price of oil since the summer, CSX reported a fourth-quarter increase in crude oil and other shipments. Ward said that during the quarter the railroad handled three and a half trains a day carrying fuel from the Bakken shale formation in North Dakota to refineries in Pennsylvania and New Jersey.
CSX's CEO said as long as oil stays above $30 to $35 a barrel producers can continue to make money on existing wells and the railroad does not anticipate any short-term drop in Bakken fuel heading to East Coast refineries.
Well, is Norfolk Southern still getting puked?