Norfolk Southern
reports second-quarter 2015 results
SECOND-QUARTER 2015 RESULTS
· Railway operating
revenues totaled $2.7 billion.
· Income from railway
operations was $814 million.
· Net income totaled
$433 million.
· Diluted earnings per
share were $1.41.
· The railway operating
ratio was 70.0 percent.
NORFOLK, Va., July 27, 2015 – Norfolk Southern Corporation (NYSE: NSC) today
reported financial results for second-quarter 2015. Net income for the
quarter was $433 million, 23 percent lower compared with the $562 million record
results from the same period of 2014. Diluted earnings per share were $1.41
compared with $1.79 per diluted share earned in the second quarter last
year.
“While we face short-term pressure, particularly as we clear
fuel surcharge revenue and coal headwinds, Norfolk Southern is well positioned
to continue improving service, which will reduce costs and add value to our
customers,” said CEO James A. Squires. “Growth within the intermodal franchise,
consumer spending, housing-related momentum and improved manufacturing activity
all support an optimistic longer-term outlook. We have a strong legacy of
success, and we are taking the right steps to continue value creation for our
customers, the communities we serve, our employees, and our shareholders.”
SECOND-QUARTER
SUMMARY
t; · Railway operating
revenues were $2.7 billion, 11 percent lower compared with second-quarter
2014, a
result of lower fuel surcharges and coal volumes. Total volume
decreased 2 percent, or about 46,000 units. Gains in intermodal and merchandise
traffic were offset by losses in coal.
t; · General
merchandise revenues were $1.6 billion, 5 percent lower than the same period
last year, reflecting lower fuel surcharges. Volume grew by 1 percent, with
strong growth in chemicals offsetting declines in steel. Automotive and paper
volume increased with higher vehicle production and strength in pulpboard and
lumber. The five general
merchandise commodity groups reported mostly lower revenue results on a
year-over-year basis:
§ Chemicals: $454
million, about even with 2014
§ Agriculture: $ 379
million, down 2 percent
§ Metals/Construction:
$344 million, down 16 percent
§ Automotive: $254
million, down 6 percent
§ Paper/Forest: $196
million, down 2 percent
· Intermodal revenues
were $633 million, 3 percent lower compared with second-quarter 2014, as lower
fuel surcharges more than offset volume gains. Higher shipments in our
international business drove overall volume growth of 2 percent in the quarter
compared with the same period of 2014.
t; · Coal revenues were
$453 million, 33 percent lower compared with the second quarter of 2014. Coal
revenues were affected by continuing low natural gas prices and declining fuel
surcharges. Volume was down 21 percent, driven by declines of 23 percent in
domestic utility and 38 percent in export.
t; · Railway operating
expenses declined 6 percent to $1.9 billion, primarily due to lower fuel
costs, compared with the
same period of 2014.
; · Income from railway
operations was $814 million, 20 percent lower compared with second-quarter
2014.
t; · The operating
ratio, or
operating expenses as a percentage of revenue, was 70.0 percent,
compared with 66.5 percent in the same quarter of 2014.
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)