(The following article by April Taylor was posted on the Hampton Roads Daily Press website on April 22.)
NORFOLK, Va. — Norfolk Southern Corp.’s revenues from railroad operations rose to a record $1.7 billion in the first quarter, with officials attributing the increases in merchandise revenues – such as metal and coal shipments – and growth in intermodal and auto-hauling traffic as some reasons for the strong gains. Intermodal traffic carries standardized shipping containers among ships, trains and trucks.
Coal revenues reached $398 million, an increase of $44 million, or 12 percent, over the same period last year.
“A weaker dollar and the current impact of global demand on raw materials drove gains in our export markets,” said Donald Seale, senior vice president of marketing services.
The net income earned by the railroad company, however, declined 24 percent, to $158 million, in the first quarter from $209 million a year earlier.
But last year’s first-quarter earnings included two exceptions, officials said: a one-time $114 million after-tax gain resulting from changes in accounting, as well as a $10 million after-tax gain.
That amount was related to the company’s 1998 sale of North American Van Lines.
“Our real revenues were better this year, once you account for those special items,” said Robin Chapman, a spokesperson for the company.
Norfolk Southern, the nation’s fourth-largest railroad, employs more than 28,000 workers and operates about 21,000 miles of rail lines across the United States and in Canada. The company employs 900 in Hampton Roads.