(The Associated Press circulated the following on July 27, 2010.)
NEW YORK — Norfolk Southern Corp. is expected to highlight a steady economic recovery in the second-quarter when it reports earnings for the period on Tuesday after the market closes.
The eastern railroad’s rival CSX Corp. reported second-quarter earnings earlier this month. It said a “dynamic” U.S. economy, combined with an improvement in shipping volume and higher prices, drove its profit up 36 percent.
Shipments on North American railroads have grown steadily so far this year, as manufacturing activity ratcheted up, though most traffic still isn’t as strong as it was in 2008.
Norfolk Southern, which is based in Norfolk, Va., said when it reported first-quarter earnings that is was convinced the U.S. economic recovery was well under way, but it was still uncertain how fast it would progress. Investors will be looking for more clarity on the recovery’s pace as well as the railroad’s ability to raise prices and improve efficiency during the quarter.
Analysts polled by Thomson Reuters are forecasting a profit of 99 cents per share on revenue of $2.40 billion. In last year’s second quarter, Norfolk Southern earned $247 million, or 66 cents per share, on revenue of $1.86 billion.