Norfolk Southern sees demand ‘bottom’ this quarter
NEW YORK (AP) ó Railroad Norfolk Southern says it expects shipping demand, which has plunged as the recession has worsened, to approach its worst level this quarter and possibly start to improve as early as the second half of this year.
Chief Executive Wick Moorman said in a conference call with analysts and reporters on Wednesday that the company is still seeing “significant pressure” on volumes in the second quarter, but predicted declines might bottom out before the quarter ends in May.
Moorman said demand could improve as early as the back half of this year, as stimulus money starts spurring business. Rail demand picked up slightly when federal stimulus dollars were spent last year, but later plunged to levels worse than they were before.