NORFOLK, Va. – Norfolk Southern Corporation (NYSE: NSC) reported third-quarter 2007 net income of $386 million, or $0.97 per diluted share, compared with $416 million, or $1.02 per diluted share, for the same period of 2006.
Results included the effects of Illinois tax legislation enacted during the third quarter of 2007 that reduced net income by $19 million, or $0.05 per diluted share.
“Norfolk Southern continued to deliver solid results in the third quarter,” said CEO Wick Moorman. “Softness in certain segments of the economy resulted in reduced traffic volumes, which we were substantially able to offset through pricing gains and cost control. We remain confident in the overall strength of our franchise, and we continue to take a long-term perspective as we plan new traffic corridors, improve technology, and support our workforce with the tools necessary to provide superior service.”
Third-quarter railway operating revenues were $2.35 billion, down 2 percent compared with the same period a year earlier. Fewer intermodal and coal shipments as well as continued weakness in the automotive-related and housing industries contributed to a 4 percent reduction in traffic volume during the quarter compared with the third quarter of 2006.
General merchandise revenues were $1.29 billion, a third-quarter record and an increase of 1 percent compared with the same period last year, despite a 3 percent decline in volume.
Coal revenues declined 3 percent to $578 million in the quarter compared with the same period of 2006. Traffic volume was down 2 percent for the quarter.
Intermodal revenues were $484 million, down 6 percent compared with the same period of 2006. Volume decreased by more than 51,000 units, or 6 percent, in the third quarter compared with the same quarter a year earlier.
Railway operating expenses were $1.67 billion for the quarter, about even compared with third-quarter 2006.
The railway operating ratio for the quarter increased 1 percentage point to 71.1 percent.
— Special to Railfanning.org News Wire
