Norfolk Southern Corp.’s net income for the second quarter of 2016 was $405 million, compared with $433 million during the same period of 2015, the company announced today.
Diluted earnings per share were $1.36, 4 percent lower compared with $1.41 per diluted share earned in the second quarter last year.
“Our second-quarter results reflect our unwavering focus on cost-control, steadfast commitment to customer service, and significant improvements in network performance,” Chairman, President and CEO James A. Squires said in a news release. “We are on track to achieve productivity savings of at least $200 million for 2016, and our record first half operating ratio of 69.4 percent gives us confidence we’ll achieve a full-year operating ratio below 70 percent. Through the continued execution of our strategic plan, we remain confident in our ability to drive superior shareholder value through excellent customer service that positions us for future revenue growth, combined with network efficiency and asset utilization.”
Other highlights include:
- Railway operating revenues were $2.5 billion, down 10 percent compared with second-quarter 2015, due to reduced volumes and lower fuel surcharge revenues
- Overall volume declined 7 percent to 1.8 million units for the quarter
- Merchandise revenues were $1.6 billion, 3 percent lower than the same period last year
- Intermodal revenues were $538 million, 15 percent lower compared with second-quarter 2015
- Coal revenues were $339 million, 25 percent lower compared with second-quarter 2015
- Railway operating expenses declined 11 percent to $1.7 billion, primarily due to cost reduction initiatives as well as lower fuel costs, compared with the same period of 2015
- Income from railway operations was $770 million, 5 percent lower compared with second-quarter 2015.
- The composite service metric improved 13 percent in the quarter and 18 percent for the first six months of 2016, compared with the same periods last year
- The operating ratio, or operating expenses as a percentage of revenue, was 68.6 percent, a 140 basis point improvement compared with 70.0 percent in the second quarter of last year