(Source: Norfolk Southern press release, July 25, 2018)
NORFOLK, Va. — Norfolk Southern Corporation today reported record second-quarter financial results.
Net income was $710 million, up 43 percent year-over-year, a result of an 18 percent increase in income from railway operations and a lower effective income tax rate. Diluted earnings per share were $2.50, up 46 percent year-over-year and a second-quarter record.
“Our second-quarter results reflect strong growth in our business and our sustained commitment to improving financial performance,” said James A. Squires, Norfolk Southern chairman, president and CEO. “We are committed to delivering financial results that benefit our shareholders and service that benefits our customers.”
Second-quarter summary
• Railway operating revenues of $2.9 billion increased 10 percent compared with second-quarter 2017, as overall volumes were up 6 percent reflecting growth in all three major commodity categories of intermodal, merchandise and coal.
• Railway operating expenses increased $107 million, or 6 percent, to $1.9 billion compared with the same period last year largely a result of higher fuel prices, higher incentive compensation, and increased costs associated with overall lower network velocity offset, in part, by refund claims for prior years’ employment taxes paid on equity awards.
• Income from railway operations was $1.0 billion, an increase of 18 percent year-over-year, a record for any quarter. The railway operating ratio, or operating expenses as a percentage of revenues, was 64.6 percent, a second-quarter record.