(The Kansas City Star posted the following Associated Press article on its website on April 24.)
NORFOLK, Va. — Norfolk Southern Corp.’s first-quarter profits more than doubled to $209 million, largely due to a gain from an accounting change.
The Norfolk-based railroad company said Wednesday its earnings for the period ended March 31 came to 54 cents a share, compared with $86 million, or 22 cents per share, in the first quarter of 2002.
Excluding a $114 million gain mainly from a required accounting change and a $10 million gain from discontinued operations resulting from the 1998 sale of a former motor carrier subsidiary, earnings were $85 million, or 22 cents per share. The accounting change was for the cost of removing railroad crossties.
Analysts surveyed by Thomson First Call had estimated earnings of 21 cents.
First-quarter coal revenues declined 1 percent to $354 million as demand for industrial and metallurgical coal decreased. But total revenues rose 4 percent to $1.56 billion, as general merchandise revenues climbed on the strength of automotive and agricultural shipments and intermodal revenues were boosted by increased international container business.
David R. Goode, Norfolk Southern’s chairman, president and chief executive officer, said the company was pleased with “a solid quarter” considering the economic slowness.
“We are intensely focused on diverting freight traffic from the highways to the rails, reducing debt and costs, and strategically positioning Norfolk Southern to capture the opportunities for business growth as the economy rebounds,” he said.
Norfolk Southern operates a railroad system serving 22 states, the District of Columbia, and Ontario, Canada. Shares in the company rose 10 cents to close Wednesday at $20.29 each on the New York Stock Exchange.