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Norfolk Southern Corp. today reported second-quarter 2022 railway operating revenue of $3.3 billion, up 16%, and income from railway operations of $1.3 billion, up 9% compared with Q2 2021 results.
The Q2 2022 railway operating revenue reached an all-time quarterly high, with the year-over-year increase driven by a 20% hike in revenue per unit. Railway operating income also set a record. NS posted Q2 2022 net income of $819 million, about the same as a year ago, and diluted earnings per share of $3.45, a 5% increase.
Railway operating expenses totaled $2 billion, a 21% increase compared with the same period last year due to higher fuel prices, lower property sales and increased costs from inflation and service challenges, NS officials said in a press release.
The Class I posted a Q2 2022 operating ratio of 60.9% compared to 58.3% a year ago.
"The Norfolk Southern team was able to deliver solid financial performance in the second quarter, despite network fluidity challenges,” said President and CEO Alan Shaw. “We remain steadfast in our commitment to service recovery."
In the quarter, NS made "considerable progress" on staffing and launched its TOP|SPG (thoroughbred operating plan | service, productivity and growth) operating model, both of which are key to achieving the company's targeted service levels and long-term growth strategy, Shaw said.
"Already, we are seeing visible upticks in qualified employees and train speeds as a result of these initiatives, and we expect to see further progress on service recovery in the months ahead," he said.