ATLANTA — Norfolk Southern Corporation’s income from railway operations for the second quarter was $1.1 billion, while its operating ratio was 62.8%, and diluted earnings per share were $3.25.
After adjusting the results to exclude the impact of the Eastern Ohio incident, restructuring and other charges, and shareholder advisory costs from the proxy contest, railway operating income was $1.1 billion, the operating ratio was 65.1%, and diluted earnings per share were $3.06. Notably, in the second quarter, the impact of the Eastern Ohio incident included insurance recoveries which were greater than the costs incurred in the quarter.
“The Norfolk Southern team delivered strong results, including on operating ratio and expenses, that are directly in-line with the targets we committed to our shareholders,” Norfolk Southern President and CEO Alan H. Shaw said in an earnings release. “During the quarter, we demonstrated that we are leveraging our service product to secure volume growth, enhancing our safety culture, and accelerating operational improvements, while eliminating service recovery costs.
“These results show that our strategy is working and that our momentum is building,” Shaw added. “We are committed to accomplishing even more in the second half of 2024, and we reaffirm our guidance of a full-year adjusted operating ratio of approximately 66%.”
Second Quarter Summary
- Railway operating revenues of $3.0 billion, up $64 million, or 2%, compared to the second quarter of 2023.
- Income from railway operations was $1.1 billion, an increase of $555 million, or 96%, compared to second quarter of 2023.
- Adjusting for the Eastern Ohio incident and restructuring and other costs, income from railway operations was $1.1 billion, up $71 million, or 7%, compared to second quarter 2023.
- Operating ratio in the quarter was 62.8% compared to 80.7% in second quarter 2023.
On an adjusted basis, the operating ratio for second quarter 2024 was 65.1%. This represents 160 basis points of improvement from second quarter 2023 which was 66.7%. - Diluted earnings per share were $3.25, an increase of 108% compared to second quarter 2023.
Adjusting for the Eastern Ohio incident, restructuring and other costs, diluted earnings per share were $3.06, up $0.11, or 4%, compared to second quarter 2023.
