Low oil prices and the strong U.S. dollar made for a somewhat painful first quarter for major U.S. railroads CSX Corp and Norfolk Southern Corp, and may continue to weigh on their profits. Both companies derive about a fifth of their revenue from hauling coal, which faces competition from lower-priced petroleum products. CSX, the third largest U.S. railroad, on Wednesday cut its forecast for 2015 earnings-per-share growth to a mid-to-high single-digit percentage range from double digits. Chief Executive Officer Michael Ward told Reuters the reduced outlook reflected the impact of the strong dollar, low oil prices and the weak coal market. CSX on Tuesday reported a profit that met analysts' expectations, in part because of $105 million in surcharges from customers that failed to meet minimum contractual freight volumes. "The strength of the dollar did hurt us in the first quarter," Ward said. "It's a mixed bag. It hurts some of our customers, but it's good for consumers and our customers who serve those consumers." Jacksonville, Florida-based CSX's coal volumes fell 1 percent in the first quarter as the strong dollar forced a 7 percent drop in exports of the fuel, which also suffered from competition from low-priced natural gas. The company said its domestic coal business could fall 5 percent in 2015. CSX also expects the strong dollar to hurt its U.S. steel-producing customers because of rising cheap imports. The railroad said crude by rail shipments, a profitable business plagued by uncertainty amid low oil prices, should remain flat throughout 2015. Earlier this week, Norfolk Southern, the fourth-largest U.S. railroad, estimated first-quarter earnings at $1.00 a share, 15 percent below last year and below analysts' expectations of $1.25. The Norfolk, Virginia-based company said revenue was down 5 percent. Norfolk Southern said severe winter weather hurt results, a factor CSX also highlighted, as did increased training costs as it scrambles to meet demand. But Norfolk Southern blamed the strong dollar and low natural gas for the dent in its coal business. "Coal remains challenging across the board," President Jim Squire said in a conference call on Tuesday. However, S&P Capital IQ Equity Research Director Jim Corridore said the growing U.S. economy and improving efficiency should help mitigate the impact of cheap oil and the strong dollar on CSX and Norfolk Southern. "We still expect them to post solid profits moving forward," Corridore said. (Reuters)