(Source: Norfolk Southern press release, April 28, 2021)
NORFOLK, Va. — Norfolk Southern Corporation today reported first-quarter 2021 financial re-sults.
First-quarter net income was $673 million, diluted earnings per share was a first-quarter record of $2.66, and the operating ratio improved to an all-time quarterly record of 61.5%.
“Our steadfast commitment to improving productivity and executing our precision scheduled rail-roading strategy has propelled us to another record operating ratio performance while we grew rev-enues and earnings in the quarter,” said James A. Squires, Norfolk Southern chairman, president and CEO. “Our first-quarter results demonstrate our team’s ability to deliver strong performance in the face of significant supply chain disruptions. The reopening of the economy provides meaning-ful tailwinds for continued strength in both the consumer and manufacturing sectors, and our long history of delivering sustainable transportation solutions for customers will continue to drive long-term value for our shareholders, customers, and the communities we serve.”
First Quarter Summary
• Railway operating revenues of $2.6 billion increased 1%, or $14 million, compared with first-quarter 2020, driven primarily by a 3% increase in volume.
• Railway operating expenses were $1.6 billion, a decrease of 21%, or $433 million, compared with the same period last year. (Last year’s results included a $385 million non-cash locomotive rationalization charge as a result of productivity gains achieved through the successful introduction of PSR. Excluding the locomotive rationalization charge, operating expenses were down 3%, or $48 million, compared with adjusted operating expenses in the first quarter of 2020, driven by lower fuel, compensation and benefits, and materials expenses.)
• Income from railway operations was a first-quarter record of $1.0 billion, an increase of 79%, or $447 million, year-over-year. (Excluding the effect of the locomotive rationalization charge in first-quarter 2020, income from railway operations was up 7%, or $62 million year-over-year.)
• Railway operating ratio was 61.5%, an all-time record.