NEW YORK — Norfolk Southern Corporation (NSC) today reported third-quarter net income of $126 million, or $0.32 per diluted share, an increase of 59 percent, compared with net income of $79 million, or $0.20 per diluted share, in the third quarter of 2001.
“We are encouraged with our results and another quarter of year-over-year improvement in our financial performance,” said Henry C. Wolf, Norfolk Southern vice chairman and chief financial officer. “We will continue to take steps to improve our service consistency and reliability while at the same time grow our revenue base and achieve greater productivity.”
For the first nine months, net income increased 27 percent to $331 million, or $0.85 per diluted share, compared with net income of $260 million, or $0.67 per diluted share, in the same period a year earlier. Net income during the first nine months of 2001 included an after-tax gain of $13 million, or $0.03 per share from the 1998 sale of a former trucking subsidiary.
Third-quarter railway operating revenues rose six percent to $1.60 billion compared with third quarter 2001. Year-to-date railway operating revenues of $4.69 billion were up one percent compared to the same period a year earlier. Third-quarter general merchandise revenues of $917 million improved six percent compared to the same period of 2001. All market groups reported increases, led by automotive and metals. For the first nine months, general merchandise revenues increased three percent to $2.73 billion compared with the year-earlier period.
Intermodal revenues of $310 million were the highest of any quarter in Norfolk Southern’s history and climbed 11 percent compared to the third quarter of 2001. For the first nine months, intermodal revenues rose five percent to $875 million compared with the same period of 2001. The revenue growth reflects increases in both international and domestic business, particularly converting traffic from the highway.
Coal revenues improved one percent to $371 million in the quarter compared to a weak third quarter of 2001 but declined six percent to $1.08 billion in year-over-year performance.
Railway operating expenses for the quarter increased two percent to $1.29 billion compared to the third quarter 2001 but decreased two percent to $3.82 billion for the first nine months compared to the same period a year earlier. For the quarter, the railway operating ratio improved 3.3 percentage points to 80.5 percent compared with 83.8 percent for the same period of 2001. For the first nine months, the operating ratio improved 2.8 percentage points to 81.4 percent compared with 84.2 percent during the same period of 2001.
Norfolk Southern Corporation is one of America’s leading transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 21,500 miles of road in 22 states, the District of Columbia and the province of Ontario, serving every major container port in the eastern United States and providing superior connections to western rail carriers. NS operates the East’s most extensive intermodal network and is the nation’s largest rail carrier of automotive parts and finished vehicles.