(The Associated Press circulated the following article on June 24.)
NORFOLK, Va. — Norfolk Southern Corp. on Friday said it reached a settlement with Duke Energy Corp. and a tentative agreement with Carolina Power & Light Co. to resolve rail transportation rate cases.
Terms of the agreements — which must still receive approval from the Surface Transportation Board — were not released. However, Norfolk Southern said the deals will boost second-quarter income by $24 million, or 6 cents per share.
In the year-ago quarter, the company earned $213 million, or 54 cents per share. Analysts surveyed by Thomson Financial are looking for second-quarter profit of 65 cents per share, on average.
Duke and Carolina Power & Light each filed rate complaints before the board three years ago. Last year, the board found Norfolk’s rates were reasonable — but they still became the target of further proceedings.
Shares of Norfolk fell 83 cents, or 2.7 percent, to close at $30.34. Duke Energy shares fell 34 cents to close at $29.19, but rose 12 cents in after-market activity. Both trade on the New York Stock Exchange.