Progressive Railroading

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


View Current Digital Issue »


RAIL EMPLOYMENT



Rail News Home Financials

10/26/2005



Rail News: Financials

NS overcomes hurricane's wrath, fuel costs to earn record quarterly income


advertisement

Despite higher third-quarter costs associated with Hurricane Katrina-damaged infrastructure, casualty claims and fuel, Norfolk Southern Corp. earned net income of $301 million, a 4.5 percent increase compared with third-quarter 2004. Net income rose 28 percent excluding a Conrail corporate reorganization gain that increased reported income by $53 million.

In addition, NS set a quarterly operating revenue record at $2.16 billion, a 16 percent increase compared with the same 2004 period. General merchandise and intermodal revenue rose 13 percent to $1.1 billion and 17 percent to $471 million, respectively. During the quarter, NS also set a coal-volume record at 451,000 carloads and increased coal revenue 22 percent to $546 million.

However, quarterly operating expenses of $1.63 billion rose 17 percent and NS’ operating ratio worsened 0.8 points to 75.5 compared with third-quarter 2004.

“These good results came from the effective response of our people to the challenges of the quarter and our ability to maintain service for our customers, while moving a record-setting 2 million carloads of traffic,” said NS Chairman and Chief Executive Officer David Goode in a prepared statement.

During 2005’s first nine months, NS’ revenue totaled $6.27 billion, a 17 percent increase compared with the same 2004 period. Revenue was driven by a 9 percent traffic volume increase, higher average revenues and fuel surcharges. In addition, NS’ net income rose 39 percent to a record $919 million and operating ratio improved 1.2 points to 75.7.

But operating expenses totaling $4.75 billion rose 15 percent compared with 2004’s first nine months.


Contact Progressive Railroading editorial staff.

More News from 10/26/2005