Norfolk Southern Reports Second-Quarter 2011 Results

NORFOLK, Va. — Norfolk Southern Corp. reported record second-quarter net income of $557 million, 42 percent higher compared with $392 million during the same quarter of 2010.

Diluted earnings per share were a record $1.56, up 50 percent compared with $1.04 per diluted share earned in the same period last year. These results reflect favorable, non-recurring income tax-related benefits totaling $63 million, or $0.18 per share.

“Norfolk Southern delivered excellent financial results in the second quarter, setting all-time records for net income and earnings per share, as well as second-quarter records for revenues, operating income and operating ratio,” said CEO Wick Moorman. “We’re seeing opportunities in the global economy, and we are moving forward with initiatives to drive business growth, productivity, and efficiency across our company.”

Railway operating revenues increased to $2.9 billion, a second-quarter record, up 18 percent compared with the same period of 2010, primarily as the result of a 14 percent increase in revenue per unit.

General merchandise revenues were $1.4 billion, 12 percent higher compared with second-quarter 2010 results. Coal revenues increased 28 percent to $893 million compared with the same period last year. Intermodal revenues were $540 million, 20 percent higher compared with the second quarter of 2010.

Railway operating expenses for the quarter were $2.0 billion, 17 percent higher compared with the same period of 2010, primarily due to increased fuel expenses and compensation and benefits costs.

Income from railway operations set a second-quarter record, climbing 19 percent to $875 million compared with the same period last year.

The railway operating ratio improved to 69.5 percent, a second-quarter record, compared with 69.8 percent during second-quarter 2010.