(Source: Norfolk Southern press release, April 24, 2019)
NORFOLK, Va. — First-quarter net income was $677 million, up 23 percent year-over-year, a result of a 16 percent increase in income from railway operations and an increase in other income. Diluted earnings per share were $2.51, up 30 percent year-over-year and a first-quarter record.
“Our first-quarter results reflect the initial steps in the implementation of our new strategic plan that are transforming our company,” said James A. Squires, Norfolk Southern chairman, president and CEO. “We set company records for many financial measures in the first quarter, while improving our service product for our customers. We are intensely focused on the execution of the initiatives in our strategic plan that will drive shareholder value.”
First-quarter summary:
• Railway operating revenues of $2.8 billion, a first-quarter record, increased 5 percent compared with prior year, due to an increase in revenue per unit, resulting from increased rates as well as higher fuel surcharge revenue.
• Railway operating expenses were $1.9 billion, a decrease of $8 million, compared with the same period last year as fuel price declines and lower compensation and benefits expenses were offset by increased purchased services and rents.
• Income from railway operations was $966 million, an increase of 16 percent year-over-year, and a first-quarter record. The railway operating ratio, or operating expenses as a percentage of revenues, was 66.0 percent, also a first-quarter record.