U.S. railroads see coal boom continuing

NEW YORK, Sept 11 (Reuters) – U.S. railroads expect shipments of coal to remain strong for the foreseeable future, supporting the rail sector’s double-digit earnings growth in coming years, industry executives said on Thursday.

Railroads, including CSX Corp, Union Pacific Corp., Norfolk Southern Corp. and Burlington Northern Santa Fe Corp, all highlighted coal shipments as a key growth area in presentations at a transports conference.

CSX raised its 2008 profit forecast, citing pricing and industry momentum, and said long-term earnings growth would be higher than previously expected, sending its shares up more than 10 percent. Other rail stocks also rallied.

Guardian