(The Associated Press circulated the following on October 24.)
NORFOLK, Va. — Railroad operator Norfolk Southern Corp. said Wednesday its third-quarter earnings fell 7 percent, hurt by weakness in coal, auto and housing-related shipments and a change in tax law in Illinois.
The company earned $386 million, or 97 cents per share, compared with $416 million, or $1.02 per share, in the year ago quarter. A change in Illinois tax law that modifies the way in which transportation companies apportion their taxable income to the state reduced earnings in the latest quarter by 5 cents per share.
Revenue slipped 1.7 percent to $2.35 billion, from $2.39 billion in the prior-year period.
Analysts were expecting a profit of $1.02 per share on revenue of $2.41 billion, according to a poll by Thomson Financial.
In addition to weak intermodal — the moving of freight from one method of transportation to another — and coal volumes, the company attributed its profit loss to continued weakness in the automotive-related and housing industries. Total traffic volume was down 2 percent for the quarter, Norfolk Southern said.
Coal revenues declined 3 percent to $578 million, and intermodal revenue slipped 6 percent to $484 million.