NORFOLK, Va. — A wire service reports that Norfolk Southern Corp. posted higher profits in the first quarter despite a slight decline in revenue from the same period last year.
The Norfolk-based railroad company said Wednesday it earned $86 million, or 22 cents a share, in the first quarter, slightly below the Thomson Financial/First Call analyst consensus estimate of 23 cents. In the year-ago quarter, the company earned $74 million, or 19 cents per share, in the same quarter last year.
Revenue for the quarter totaled $1.5 billion, down 3 percent from $1.54 billion for the same period last year.
Shares of Norfolk Southern fell 9 percent on the news.
The company said the decline in sales was a result of lower coal revenues caused by unusually warm weather, lower trucking-related revenues partly caused by elimination of a surcharge on diesel fuel, and general economic weakness that lowered shipments of paper and forest products, construction materials, metals and chemicals.
Helping the company boost its profitability despite the lower revenue were a 6 percent reduction in railroad expenses and a 31 percent decline in diesel fuel expenses.
David R. Goode, chairman and chief executive officer, said the company was pleased by the improved profitability “achieved during a period marked by continuing economic slowness and weak coal demand … As economic conditions improve, we expect to make continued improvements and to pick up business from our better service.”
Norfolk Southern’s stock closed Tuesday at $20.88 a share, down $2.10 on the New York Stock Exchange.