Tuesday, April 24, 2012

NS: “Another record-breaking quarter”

Written by  William C. Vantuono, Editor-in-Chief
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Norfolk Southern late Tuesday reported net income of $410 million ($1.23 per 
diluted share), up 26% from the first quarter of 2011. This included 
 a $58 million non-cash charge that reduced net income by $36
 million, or $0.10 per diluted share.

“I am pleased to report another record-breaking quarter for Norfolk Southern, 
during which we achieved first-quarter highs in revenues, operating income, net income, and earnings per share,” said CEO Wick Moorman (pictured). “The benefits of 
our steady focus on service and operating efficiency are reflected in our 
results, and we continue to position our franchise for sustained growth 
through strategic investments in infrastructure.”

Compared with the first quarter of 2011, railway operating revenues 
improved 6% to $2.8 billion, primarily as the result of a 5% increase in
 revenue per unit; general merchandise revenues improved 13% to $1.5 billion; 
coal revenues declined 6% to $766 million; and intermodal revenues improved 
to $527 million.

Railway operating expenses were up 1% to $2 billion from first-quarter
 2011. The increase was largely due to higher fuel prices, compensation
 costs, and materials expenses, offset in part by the absence of last year’s
 non-cash charge.

 Income from railway operations for the first quarter increased 24% to $745

The operating ratio improved 5% to 73.3% compared with 
first-quarter 2011, and equaled the first-quarter record.

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