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CSX optimistic long-term but predicts flat 3Q

By WTOP Staff

JOSH FUNK
AP Business Writer

OMAHA, Neb. (AP) — CSX is optimistic about its long-term performance, but the railroad’s profit during this quarter will likely be relatively flat.

The company discussed its second-quarter results Wednesday after edging out Wall Street profit expectations.

CSX saw a surge in demand, particularly for hauling coal and crude oil, at the same time that it was attempting to clear a backlog of shipments delayed by severe winter weather.

Those frigid temperatures led to a 6 percent increase in coal shipments because utilities in the Northeast had a smaller window in which to ship coal over the Great Lakes. That’s encouraging for the railroad because it signals fewer utilities are switching power plants from coal to natural gas, which can be shipped through pipelines.

“These results are evidence of both broad-based economic momentum across most markets, and a transition in the energy markets that is largely behind us,” said CEO and Chairman Michael Ward.

CSX expects volume to continue growing, and it’s investing an additional $100 million in equipment to handle the load. The company expects only modest profit growth this year with most of that coming in the fourth quarter.

The railroad expects that its third-quarter profit will be in line with the 45 cents per share it delivered last year. That, however, is 3 cents shy of what analysts surveyed by FactSet were looking for, and shares slipped 6 cents to $31.09 in midday trading Wednesday.

CSX said Tuesday its second-quarter profit improved 2 percent to $529 million, or 53 cents per share, from $521 million, or 51 cents per share, last year.

The railroad is now hauling about 20 trainloads a week of crude oil to refineries on the East Coast. Those shipments of oil from the Bakken region of North Dakota and Montana have been a bright spot for railroads, but new safety regulations currently being pieced together could prove costly.

Federal regulators are expected to propose new rules for tank cars sometime later this year, and the Transportation Department has been developing other rules to address safety concerns after several fiery rail accidents involving crude oil.

Ward said he is excited about the prospect of new regulations calling for the railroad tank cars hauling crude oil to be redesigned and strengthened, but he’s worried about the possibility of a 30 mph speed limit being imposed on trains carrying crude oil.

“That would be severely limit our ability be to provide reliable freight service for customers and to support the timely, efficient passenger or commuter service,” Ward said.

Railroads already have voluntarily lowered speeds from 50 mph to 40 mph in urban areas.

CSX Corp., based in Jacksonville, Florida, operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces. It is the first major railroad to release results.

Norfolk Southern will report earnings next Wednesday, and Union Pacific will release its quarterly earnings report next Thursday.

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Follow Josh Funk online at www.twitter.com/funkwrite

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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