Norfolk Southern reports
fourth-quarter and full-year 2014 results
NORFOLK, Va., January 26, 2015 – Norfolk Southern Corporation
(NYSE: NSC) today reported financial results for fourth-quarter and full-year
2014.
Net
income for the quarter was $511 million, or $1.64 per diluted share, compared
with $513 million, or $1.64 per diluted share, earned in fourth-quarter 2013.
For the year, net
income increased to a record $2.0 billion, 5 percent higher compared with $1.9
billion for 2013. Diluted earnings per share for 2014 were a record $6.39, up 6
percent compared with $6.04 per diluted share for 2013.
FOURTH-QUARTER 2014
RESULTS
§ Railway operating
revenues totaled $2.9 billion.
§ Income from railway
operations was $891 million.
§ Net income totaled
$511 million.
§ Diluted earnings per
share were $1.64.
§ The railway
operating ratio was 69.0 percent.
2014 RESULTS SET
RECORDS
§ Railway operating
revenues reached $11.6 billion.
§ Income from railway
operations was $3.6 billion.
§ Net income totaled
$2.0 billion.
§ Diluted earnings per
share were $6.39.
§ The railway operating
ratio was 69.2 percent.
“Norfolk Southern delivered
another solid quarter of financial performance, capping a record-setting year
during which our company achieved its best results for revenues, operating
income, net income, earnings per share, and operating ratio,” said CEO Wick
Moorman.
“For 2015, we plan to invest $2.4 billion in capital
investments to maintain the safety and quality of our rail network, enhance service,
improve operational efficiency, and support growth opportunities.”
FOURTH-QUARTER SUMMARY
<· Operating revenues were
$2.9 billion, about even compared with fourth-quarter 2013, with gains in
merchandise and intermodal revenues offsetting weaker coal revenues. Total
volume was up 4 percent, or about 66,000 units, due to gains in intermodal and
merchandise traffic.
<· General merchandise revenues
were $1.7 billion, 3 percent higher than the same period last year. Volume grew
by 5 percent, led by increases in shipments of chemicals and metals and
construction. The five commodity
groups reported mixed revenue results on a year-over-year basis:
§ Chemicals: $477 million, up 11
percent
§ Agriculture: $387 million, down 2
percent
§ Metals/Construction: $366 million, up
5 percent
§ Automotive: $253 million,
even
§ Paper/Forest: $195 million, down 3
percent
<· Intermodal revenues
increased to $649 million, 5 percent higher compared with fourth-quarter 2013.
Growth in international
and domestic business pushed traffic volume up 6 percent in the quarter compared
with the same period of 2013.
<· Coal revenues were $543 million, 15
percent lower compared with the fourth quarter of 2013. A weak global export market and fewer shipments of coal
to utilities combined to decrease volume by 6 percent.
<· Railway operating expenses were $2.0
billion, down 1 percent compared with the same period of 2013.
<· Income from railway operations was
$891 million, a fourth-quarter record and 1 percent higher compared with
fourth-quarter 2013.
<· The operating ratio,
or
operating expenses as a percentage of revenue, improved 1 percent to
69.0 percent,
compared with the same quarter in 2013.
2014 SUMMARY
<· Railway operating revenues
reached a record $11.6 billion, 3 percent higher compared with 2013, driven by a
5 percent increase in traffic volume.
<· General merchandise revenues rose 6
percent to $6.7 billion, and traffic volume increased 5 percent compared with
the prior year.
<· Intermodal revenues increased to $2.6
billion, up 7 percent compared with 2013. Traffic volume was 8 percent higher
for 2014 compared with 2013.
<· Coal revenues were $2.4 billion, down
6 percent, due to a 5 percent decline in traffic volume compared with
2013.
<· Railway operating expenses were $8
billion, up 1 percent compared with 2013.
<· Income from railway operations was a
record $3.6 billion, 10 percent higher compared with 2013.
<· The operating ratio for the
year was a record 69.2 percent, a 3 percent improvement compared with 71.0
percent in 2013.
About Norfolk
Southern
Norfolk Southern
Corporation is one of
the nation’s premier transportation companies. Its Norfolk Southern Railway
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.
Media
Inquiries:
Frank Brown, 757-629-2710 (fsbrown@nscorp.com)
Investor
Inquiries:
Katie Cook, 757-629-2861 (InvestorRelations@nscorp.com)