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.

The increased dividend is payable on Sept. 10, to stockholders of record on Aug. 5.

Since its inception in 1982, Norfolk Southern has paid dividends on its common stock for 116 consecutive quarters.

This is the second consecutive year that Norfolk Southern has made the list. The company was cited for the diversity of its senior management.

“Norfolk Southern is proud to be recognized by Black Enterprise magazine as a company that sets the standard in diversity for American businesses,” said Cindy Earhart, vice president human resources. “We recognize that a diverse workforce and inclusive business practices provide us with a competitive advantage and are keys to our future success. At Norfolk Southern, our employees are our most valued asset. We have many programs and processes in place to assist us with developing and leveraging the diversity of talent within our organization.”

Black Enterprise’s seventh annual list is based on the results of a survey of 1,000 major publicly traded corporations and 100 leading global companies with significant U.S. operations. The survey focused on the overall participation of African Americans and members of other ethnic minority groups in four areas: board representation, employee base, senior management, and supplier diversity.

The rail infrastructure improvements are critical to the region’s coal-mining industry and to meeting the electricity needs of households and businesses across the Northeast and Midwest.

Some 30 trains daily operate on Norfolk Southern’s Mon Valley rail network, which serves five coal mines that shipped  41.4 million tons of coal in 2010.

“The coal industry in that part of the country is vital to jobs and to U.S. energy security, and it’s essential that we maintain and improve our track infrastructure to provide solid and dependable service,” said Tim Drake, NS’ vice president engineering.

For many years in early July, the railroad has undertaken an intensive effort to overhaul the Mon Valley rail lines during the coal miners’ annual summer break, July 3-10. This year more than 400 NS maintenance of way and structures department employees from across the railroad’s 22-state system laid 29 miles of new rail, resurfaced nearly 69 miles of track, and replaced three bridge decks, among other improvements. Four work trains and 95 pieces of large machinery were used.

Under normal operating conditions, the work would have taken approximately three months to complete, with significant disruptions in service.

“There’s an extraordinary amount of planning, organization, and teamwork that goes into making this a success,” Drake said. “Our employees worked under extreme conditions and hot weather and did it safely.”

“It’s amazing the amount of work that gets done in such a short amount of time,” said Butch Phillips, an NS track laborer fromWaynesburg, Pa., who participated. “We take a lot of pride in it.”

“It’s a big makeover, like a facelift,” said Drew Laird, an NS machine operator. “We want to put the track in the condition required to move the trains faster and safer.”

Drake said the Mon Valley project is an example of how NS is investing in its rail infrastructure to support jobs and the nation’s economic recovery.

The project, which will get under way late r this summer, will eliminate one of the nation’s largest rail bottlenecks. The Illinois Department of Transportation contributed $6.6 million to the $133 million project.

The Englewood Flyover is a grade separation project south of Chicago Union Station that eliminates one of the most delay-prone intersections in the entire Amtrak system. It separates Rock Island District Metra commuter trains from Amtrak passenger trains traveling on the Norfolk Southern (NS) corridor.

“Untying rail congestion in Chicago is critical to developing a Midwest passenger rail network that will connect the 40 largest markets in the Midwest,” LaHood said. “Building the Englewood Flyover will put Americans back to work this summer and create new orders in our domestic supply chain.”

An agreement between Illinois, NS and Amtrak also lays the groundwork for an additional express track for high-speed trains to points east and south. Amtrak utilizes the NS line for all trains from Detroit, Cleveland, Cincinnati and Indianapolis into Chicago. The State of Illinois will serve as the hub of the Midwest passenger rail network.

The Englewood Flyover project is part of the Chicago Region Environmental and Transportation Efficiency (CREATE) Program, a partnership between the State of Illinois, the City of Chicago, freight railroads, Metra and Amtrak, to remove and reduce train congestion throughout Chicagoland and the Midwest region.

This congestion impacts all modes of transportation, forcing more trucks on to the highways, limiting access to airports, and reducing the capacity of railroads, limiting the regions effectiveness as the nation’s transportation hub, officials contend. In addition to the intercity passenger benefits, the Englewood Flyover will also reduce freight and commuter delays, keeping more people and freight off Chicagoland’s congested highways.

“Not only will Illinois see the benefit of new construction jobs and some desperately needed congestion relief, this is a great opportunity for Illinois suppliers to bid on new orders,” said Federal Railroad Administrator Joseph C. Szabo. “Illinois has more railway suppliers than any other state in the country, and does more than $4.5 billion in sales each year.”

The American Recovery and Reinvestment Act and annual appropriations have, to date, provided $10.1 billion to put America on track towards providing new and expanded rail access to communities and improving the reliability, speed, and frequency of existing service. Of that, nearly $6 billion dollars has already been obligated for rail projects. This $126 million obligation was funded through the Recovery Act. In the Midwest, construction started last fall on the Chicago-St. Louis corridor.

The Englewood Flyover will mark the first construction between Chicago and Detroit, which has received several grants. The Midwest has also received an award for a new fleet of domestically-built trains.

The $97.5 million facility is part of the railroad’s multi-state Crescent Corridor initiative to establish an efficient, high-capacity intermodal freight rail route between the Gulf Coast and the Northeast. It occupies a 316-acre site adjacent to the Jefferson Metropolitan Park in McCalla and is expected to open in late 2012.

“The Birmingham Regional Intermodal Facility is ideally located to serve the Southeast and is a critical component of our Crescent Corridor,” said Moorman. “We thank Secretary LaHood and USDOT for their efforts to form public-private partnerships to create jobs and economic development opportunities. We commend Gov. Bentley and his administration for their awareness of the economic and environmental benefits this facility brings to Alabama. Finally, we recognize the Alabama Department of Transportation, the Alabama Development Office, the Jefferson County Commissioners, the Jefferson County Economic and Industrial Development Authority, the Birmingham MPO, and the Birmingham Business Alliance for their active participation in the planning of this project.”

“The Birmingham Regional Intermodal Facility will bring significant economic growth to McCalla and thousands of jobs to Alabamians. As our economy is regaining strength, companies like Norfolk Southern recognize Alabama is a great place to do business,” said Governor Bentley at the ceremony. “This new terminal will enable goods to move more quickly throughout the country.”

The Birmingham Regional Intermodal Facility is expected to create or enhance 8,600 jobs in central Alabama over the next 10 years, and its capacity will grow to handle 165,000 containers and trailers annually. The terminal will utilize the latest in gate and terminal automation technology, which shortens the waiting time for trucks entering the terminal, improving truck driver productivity and air quality. Additionally, state-of-the-art low emission cranes and hostler tractors will operate within the terminal.

In 2010, the Birmingham Regional Intermodal Facility was selected to participate in the Sustainable Sites Initiative (SITES™) Pilot Program. This national initiative, a partnership of the American Society of Landscape Architects, the Lady Bird Johnson Wildflower Center and the U.S. Botanical Garden, in conjunction with stakeholder organizations including the U.S. Green Building Council (USGBC), seeks to establish and encourage sustainable practices throughout each phase of a landscape’s design, construction, operation, and maintenance periods. NS also will construct the main administrative building to LEED (Leadership in Energy and Environmental Design) Certification standards.

This year’s parade is being held in support of the Mid-South Food Bank.

“It’s important to understand that train-car collisions and trespass injuries and deaths are preventable,” said David Julian, NS vice president safety and environmental. “By paying attention to our surroundings and to the warning signs and signals — maintaining situational awareness — we can keep ourselves and our families safe from harm.”

“We at Norfolk Southern feel good about the results we are producing and are confident in our ability to produce superior service for customers and superior returns for shareholders,” Moorman said. He noted that the company reported its second-highest revenues ever in 2010, a momentum that carried over into 2011. Norfolk Southern reported record revenues, income from railway operations, and earnings per share in first-quarter 2011.

Moorman said the company’s investments in corridor initiatives – highlighted by the 2010 opening of the Heartland Corridor and the 2011 groundbreakings for new terminals in Alabama and Tennessee – support current and future volume growth. “These initiatives give us increased rail capacity and also provide safety and environmental benefits for the public,” he said. “They are also important indicators of our commitment to sustainable business practices that create green jobs.”

Moorman said the company’s targeted recruitment of train-and-engine service employees to handle growing freight volumes is paying off with improved customer service. He also credited employees for the company’s continued industry leadership in employee safety. The Harriman Gold Medal will be presented to Norfolk Southern for a 22nd consecutive year during ceremonies next week in Washington, D.C.“It is recognition yet again of the determination of our people to ensuring that we conduct our business safely – not only for all of us at Norfolk Southern, but for our families, our customers, and for the communities we serve,” Moorman said.

In official business, stockholders re-elected four directors whose terms will expire in 2012: Gerald L. Baliles, director of the Miller Center of Public Affairs at the University of Virginia; Erskine B. Bowles, senior advisor to Carousel Capital and co-chairman of the National Commission on Fiscal Responsibility and Reform; Karen N. Horn, a partner with Brock Capital Group; and J. Paul Reason, retired admiral and former commander in chief of the U.S. Atlantic Fleet.

The award, presented annually for 15 years, goes to a company or facility that ships more than 1,000 carloads of regulated hazardous material over the railroad’s 22-state network without incident for the year. In 2010, 42 corporations and seven plants earned that distinction.

Altogether, these customers safely shipped more than 145,900 carloads of chemical products and goods that are essential to the U.S. economy and consumers, but potentially dangerous if mishandled during shipment. These products include industrial chemicals, petroleum products, biofuels, and sulfur.

“We congratulate these valued customers for their industry-leading performance in chemical safety,” said Norfolk Southern CEO Wick Moorman. “With their absolute focus on best safety practices, they demonstrate on a daily basis the value of freight rail as the safest, most reliable, and environmentally friendly way to move chemical products that are vital to American households and the global economy. Our hats are off to these companies and facilities for their commitment to safety and for partnering with us to help make Norfolk Southern the safest Class 1 railroad in North America.”

Norfolk Southern last month announced support for Alabama, Mississippi, and Tennessee in the form of $100,000 to the American Red Cross in each of the three states, free rail transportation for movement of certain critical response supplies, and zero-interest loans for employees who suffered property damage.

Today Norfolk Southern said it will make the same contributions for Virginia. “The damaging storms did not spare our headquarters state, and we want our employees, neighbors, and business partners to know that we stand with them in recovery and rebuilding,” NS CEO Wick Moorman said.

Norfolk Southern employs 8,300 railroaders in Virginia, Alabama, Mississippi, and Tennessee and operates over 4,450 miles of railroad there.