Shares of Norfolk Southern Corp. (NYS:NSC) dropped 4.0% in afternoon trading Friday, to lead the Dow Jones Transportation Average's (DJX:DJT) losers, after the railroad company's downbeat outlook for volumes amid the COVID-19 pandemic. At the Goldman Sachs Virtual Industries & Materials Conference, Chief Financial Officer Mark George said second-quarter volumes are "trending down about 30% quarter to date," according to a FactSet transcript. He followed by saying the company has been unable to match that steep decline in volume with its cost reductions, so operating ratio "will certainly regress in the second quarter." The FactSet consensus for second-quarter operation ratio (OR) is 66.8%, compared with an adjusted first-quarter OR of 63.7%. The stock, helped weigh on the Dow transports, as did the shares of some other railroad components, as the index fell 73 points, or 0.9%, while the Dow Jones Industrial Average (DOW:DJIA) rose 18 points, or 0.1%.
May 15, 2020, 3:11 p.m. EDT