July 23, 2014
Norfolk Southern reports record
second-quarter 2014 results
NORFOLK, VA. - For the second
quarter of 2014 Norfolk Southern reported record net income of $562 million, 21
percent higher compared with $465 million in second-quarter 2013. Diluted
earnings per share increased 23 percent to a record $1.79, compared with $1.46
per diluted share in the same period last year. The railway operating ratio, or
operating expenses as a percentage of revenue, improved 5 percent to 66.5
percent.
"Norfolk Southern delivered
excellent financial performance during the second quarter, reporting the highest
railway operating revenues in its history," said CEO Wick Moorman. "We see
continued strength across most of our business segments and are optimistic that
overall economic conditions will drive growth. Our focus remains unchanged. We
are committed to running the safest railroad, providing superior service,
increasing efficiency, and driving superior returns to our
shareholders."
Second-quarter railway operating
revenues increased to a record $3.0 billion, 9 percent higher compared with the
same period of 2013, driven by an 8 percent increase in volume.
General merchandise revenues
increased 8 percent to a record $1.7 billion compared with the second quarter of
2013. Shipments of metals and construction, chemicals, and agricultural products
fueled a 7 percent increase in traffic volume.
Second-Quarter Revenue by
Commodity Group
Coal revenues increased 7 percent
to $672 million in the second quarter compared with the same period of 2013,
with volume up 3 percent, the result of increased demand for utility coal from
stockpile replenishment in response to a severe winter and higher natural gas
prices, which offset lower export volume.
Intermodal revenues increased 11
percent to a record $650 million compared with the second-quarter 2013. Volume
increased 11 percent, the result of continued domestic growth coupled with new
international business.
Railway operating expenses were
$2.0 billion, 3 percent higher compared with second-quarter 2013, principally
due to costs associated with higher business volumes.
Income from railway operations for
the second quarter was a record $1.0 billion, 22 percent higher compared with
the same period of 2013.
The railway operating ratio, or
operating expenses as a percentage of revenue, was a record 66.5 percent, a 5
percent improvement compared with the same period of 2013.
Norfolk Southern
Corporation
(NYSE: NSC) is one of the nation's premier transportation companies. Its Norfolk
Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of
Columbia, serves every major container port in the eastern United States, and
provides efficient connections to other rail carriers. Norfolk Southern operates
the most extensive intermodal network in the East and is a major transporter of
coal, automotive, and industrial products.
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Norfolk Southern
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