Daily Record Financial News &
Monday, October 19, 2015
Vol. 102, No. 241 • Two Sections
35¢ www.jaxdailyrecord.com
Coal is still the story at CSX
When we talked to CEO Michael Ward about CSX Corp.’s third-quarter earnings last week, we skipped over the state of coal shipments because, frankly, that’s all anybody seems to talk about with CSX and it’s getting old. However, coal is CSX’s biggest business and shipments continue to drop, so the subject is unavoidable. The outlook for coal remains “bleak,” which seems to be the “new normal” for CSX, RBC Capital Markets analyst Walter Spracklin said in a research note after the company’s earnings report.
“CSX remains a company whose business is in transition with no bottom yet in sight to the declining coal markets. Thirdquarter results and management outlook reinforced once again the uncertainty prevalent in that market,” Spracklin said. “Investors looking for a bottom in coal saw no evidence here as management guided to a further 12-13 percent decline in coal in 2016,” he said. After CSX officials gave that gloomy assessment in their conference call Wednesday, the company reported more bad news about its coal business on
Portal among panel’s ideas
Thursday. Jacksonville-based CSX announced it is eliminating 300 jobs in Tennessee because of “significantly reduced coal traffic through the region.” CSX said it is cutting back operations in Erwin, Tenn., that were serving the Central Appalachian coal fields because of “diminished traffic levels” in the area. “The combination of low nat-
ural gas prices and regulatory action has significantly decreased CSX’s coal movements over the past four years, with more than $1 billion in coal revenue declines during that time,” the company said. Coal has been CSX’s biggest business segment, accounting for more than 30 percent of its revenue just a few years ago. It still is the biggest segment but with the ongoing decline of the coal business, it accounted for slightly less than 20 percent of third-quarter revenue. Looking beyond coal, there is some good news at CSX. Its third-
Another tough day for Jags
By Marilyn Young Editor
Public
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Jacksonville Jaguars head coach Gus Bradley challenges a call during Sunday’s game against the Houston Texans. A fourth-quarter collapse left the Jaguars with a 31-20 loss and a 1-5 record this year. See more photos on Page A-9.
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Photo by Fran Ruchalski
By David Chapman Staff Writer
Commission
Law school scouting Downtown locations Florida Coastal continues push to join urban core
Access to justice group makes first suggestions Only about three in 10 Americans with civil legal problems have the help of an attorney. There are myriad reasons. People might not think their issue rises to the level of legal action. Others ignore their issue altogether. Many, though, can’t afford representation. It’s commonly called the “Justice Gap.” And a statewide panel of attorneys, legislators and business leaders are trying to find ways to ensure more people who need legal help have access. Since forming in November, the 27-member Florida Commission on Access to Civil Justice has split into committees aimed at the different layers of the issue. Outreach, access and delivery, the chain of services, Van Nortwick technology and funding are all components. The first slate of recommendations came this month in an interim report to the Florida Supreme Court. They include continued pursuit of a statewide “gateway portal” that should help people connect with services; a rule change that could expand the pool of pro bono attorneys; and a way to further fund pro bono efforts through leftover class-action claims. Some on the commission have seen the access problems, but not at the depth they encountered. U.S. District Judge Timothy Corrigan said he knew there was a problem, but it’s “greater than I even knew.” “How can you have a system of justice, if a substantial number can’t get access to it?” he said.
quarter earnings of 52 cents a share were 2 cents higher than the average analyst’s forecast, according to Thomson Financial. “The company continues to execute on cost reduction and steady pricing,” said Spracklin, who maintains an “outperform” rating on the stock. Other analysts are more cautious. Patrick Tyler Brown of Raymond James & Associates is maintaining a “market perform” rating. “While we are encouraged by CSX’s productivity savings and pricing outlook, persistent coal Basch continued on Page A-10
As Florida Coastal School of Law President Dennis Stone looked out the upperstory windows of several Downtown buildings, he liked the view. He could see the Duval County Courthouse, the federal courthouse and several law firms. But, he could imagine so much more. Stone could picture his school’s several hundred students becoming part of Downtown. Going to school there. Working there. Living there. School officials toured several buildings last week as part of the renewed mission to relocate in the urban core. That mission is twofold, though, because the law school will have to find a tenant to sublease the bulk of the space it is currently occupying in its building on Baypine Road. The school still has Stone 16 years on the lease there. Stone said there has been “strong interest” in the site off Baymeadows Road but, “in this business, until the papers are signed” nothing is certain. Without a tenant to take over that space, he said, moving Downtown isn’t financially possible. And even with a tenant, the school will be seeking some level of financial incentives from the city, Stone said. Downtown Investment Authority CEO Aundra Wallace sees the value of having another higher-learning institution join Florida State College at Jacksonville in the urban core. “When you look at metropolitan cities, Law
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consecutive weekdays