NS 1Q earnings and revenue rise

Norfolk Southern late Wednesday reported earnings of $325 million, or 90 cents per diluted share, up 26% from the $257 million, or 68 cents per share, reported in the first quarter of 2010. Revenue rose 17% to $2.6 billion. The company thus beat Wall Street analyst earnings estimates of 89 cents a share, as well as estimated revenue of $2.47 billion.

NS’s operating ratio was 77.1%, compared with 75.2% in the first quarter of 2010. NS said first-quarter 2011 results included a $58 million non-cash charge associated with an unfavorable insurance arbitration ruling that reduced net income by $36 million, or 10 cents per diluted share. For the same period of 2010, results were impacted by a $27 million, or 7 cents per diluted share, deferred tax charge resulting from the enactment of healthcare legislation.

“Norfolk Southern delivered an excellent financial performance during the quarter, reflecting the strong market for freight rail transportation and the value of our service product,” said CEO Wick Moorman. “We see continuing opportunities for growth in almost every segment of our business, and we’re optimistic about our prospects for the balance of 2011.”