Oct. 22,
2014
Norfolk Southern reports third-quarter 2014 results
NORFOLK,
VA. - Norfolk Southern reported third-quarter net income of $559 million, 16
percent higher than $482 million for the same period of 2013. Diluted earnings
per share were $1.79, up 17 percent compared with $1.53 per diluted share in the
same period last year.
"Norfolk
Southern reported another record-setting quarter during which we achieved our
best third-quarter results in revenues, operating income, net income, earnings
per share, and operating ratio," said CEO Wick Moorman. "Higher traffic volumes
along with continued gains in productivity drove these excellent results. We
remain focused on ensuring we can support continued demand for freight rail
transportation by hiring additional employees, investing in new equipment, and
completing capacity projects in order to provide our customers with the freight
rail service they expect today and in the future."
Third-Quarter
Results Set Quarterly Records
· Railway operating
revenues increased 7 percent to $3.0 billion.
· Income from
railway operations improved 18 percent to $998 million.
· Net income
increased 16 percent to $559 million.
· Diluted earnings
per share rose 17 percent to $1.79.
· The railway
operating ratio improved 4 percent to 67.0 percent.
Third-quarter
railway operating revenues climbed 7 percent compared with the same period of
2013 to top $3.0 billion for a second consecutive quarter as growth in the
merchandise and intermodal markets offset a weaker coal market.
Third-Quarter
Revenue by Commodity Group
· Intermodal
$667 million, up 10 percent
· Coal
$626 million, down 2 percent
· Chemicals
$488 million, up 14 percent
· Metals/Construction
$414 million, up 11 percent
· Agriculture
$364 million, up 5 percent
· Automotive
$254 million, up 12 percent
· Paper/Forest
$210 million, up 3 percent
General
merchandise revenues reached $1.7 billion, a 10 percent increase compared with
the third quarter of 2013, driven by volume gains in all markets, with
particular strength in chemicals, automotive, metals and construction, and
agriculture.
Intermodal
revenues increased to $667 million, 10 percent higher compared with
third-quarter 2013. Volume rose 10 percent, fueled by robust growth in both
international and domestic markets.
Coal
revenues declined 2 percent to $626 million in the third quarter compared with
the same period of 2013. A weak global export market and mild weather and lower
natural gas prices in the utility market combined to decrease volume by 2
percent.
Railway
operating expenses were $2.0 billion, 3 percent higher compared with
third-quarter 2013, largely due to costs associated with higher business
volumes.
Income
from railway operations was $998 million, 18 percent higher compared with
third-quarter 2013.
The
railway operating ratio, or operating expenses as a percentage of revenue, was
67.0 percent, a 4 percent improvement compared with 69.9 percent during the same
period of 2013.
Norfolk
Southern Corporation
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
contacts: