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Rail News: Norfolk Southern Railway
Norfolk Southern's Q2 results break records
Norfolk Southern Corp. today reported second-quarter results that included records for operating income, operating ratio, net income and earnings.
Second quarter net income rose 43 percent to $710 million, or $2.50 per share, compared with $497 million, or $1.71 per share a year ago. The company attributed the net income growth to an 18 percent increase in income from railway operations and a lower effective income tax rate.
NS' earnings per share beat Wall Street analysts' predictions.
"Our second-quarter results reflect strong growth in our business and our sustained commitment to improving financial performance,” said Chairman, President and Chief Executive Officer James Squires in a press release.
Railway operating revenue for the quarter increased 10 percent to $2.9 billion over second-quarter 2017, as overall volumes were up 6 percent reflecting growth in all three commodity categories of intermodal, merchandise and coal.
Railway operating expenses climbed 6 percent to $1.9 billion for the quarter over a year ago, as 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 rose 18 percent to $1 billion compared with second-quarter 2017's results, which marked a record for any quarter, NS officials said.
The company's railway operating ratio of 64.6 percent was a second-quarter record, they said. NS posted a ratio of 66.9 in second-quarter 2017.
Contact Progressive Railroading editorial staff.