Norfolk Southern, at its Feb. 11 Investor and Financial Analyst Conference in Atlanta, said it plans to hold capital expenditures to between 16% and 18% of revenues through 2021, as the railroad targets a 60% operating ratio by that year.
Norfolk Southern’s fourth-quarter and full-year 2018 financial results include record operating income for both periods, and a full-year record-low operating ratio of 65.4%. Net income was $702 million, and diluted earnings per share were $2.57 for 4Q18, and $2.67 billion and $9.51, respectively, for the full year.
Norfolk Southern generated more than 60,000 carloads of new rail traffic in 2018 involving 72 new and 18 expanded industries across 17 states along the company’s rail lines, representing customer investments of more than $1.5 billion.
The U.S. Class I railroads started the New Year in impressive fashion, as freight and intermodal traffic notched solid gains for the week ending January 5.
The Port of New York and New Jersey opened a major new expansion of its rail network, capping a five-year plan to expand capacity for cargo destined for outside the region.
Short line operator and rail services provider R. J. Corman Railroad Group appointed two longtime Class I railroad executives to its board of directors.
Norfolk Southern has contracted with Cargotec subsidiary Kalmar for four Kalmar SmartPower rubber-tired gantry cranes (RTGs) equipped with process automation technology. Delivery is scheduled to be completed by December 2019.
Carload freight, containers and trailers carried by U.S. railroads continued a strong year-end surge, according to the Association of American Railroads.
Total U.S. rail traffic was 567,252 carloads and intermodal units for the week ending December 22, up 4.2% from the year-ago week.
Traffic on U.S. railroads was 568,941 carloads and intermodal units for the week ending December 15, up 3.9% compared with the same week in 2017.