Stormy weather: Hurricanes hurt 3rd quarter profits
Two transportation firms said their profits would be dampened by Hurricane Ike and other weather events during the third quarter.
CSX Corp. said recent storms in the Gulf Coast and Midwest are expected to reduce third quarter operating income by $40 million to $50 million and earnings per share by 6 cents to 8 cents. The impact is primarily related to asset write-downs, business interruption and reroute expenses.
Tank barge company Kirby Corp. said Hurricanes Gustav and Ike will reduce its third quarter profit by about 8 cents to 9 cents per share, or more than $4 million.
The company still expects to do better in the third quarter than it did last year, earning between 73 cents or 76 cents compared to 64 cents in the third quarter of 2007.
But it said earnings will be reduced because of the havoc the storms inflicted on the refineries and other facilities of its customers and closed waterways, which prevented some Kirby tugs and barges from operating normally.
Stormy weather: Hurricanes hurt 3rd quarter profits
