Genesee & Wyoming Inc. (GWR) slashed its second-quarter outlook this morning amid a slump in traffic.

The operator of short line and regional freight railroads now anticipates profit of 35 cents to 37 cents per share, against the earlier projection of 45 cents.

Analysts, on average, expect 44 cents, which has moved down 3 cents over the past 2 months.

Genesee & Wyoming also lowered its revenue guidance to $130 million, versus the previous outlook of $140 million to $145 million.

Meanwhile, traffic for the first 2 months of the quarter fell 5.5% from the year-ago period, due to the ongoing slowdown in industrial production. On a same-railroad basis, traffic dipped 21.4%.

Genesee & Wyoming also stated that it furloughed 234 employees since the beginning of the year, including 70 in the current quarter.

The full-year consensus estimate has declined 13 cents, or 7%, over the past 2 months and is now pegged at $1.76 per share.

GWR, a Zacks #4 Rank (”Sell”) stock, have slipped 5.5% today on volume of approximately 186,000, compared to average daily volume of about 280,000.

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