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Rail News: Norfolk Southern Railway
NS posts record Q2 earnings, operating income
Norfolk Southern Corp. today reported second-quarter 2019 net income rose 2 percent year-over-year to $722 million as the result of a 4 percent increase in railway operations income.
NS posted diluted earnings per share of $2.70, up 8 percent over the same period a year ago and a second-quarter record, the company announced in a press release.
In addition, NS reported that in Q2:
• railway operating revenue of $2.9 billion rose 1 percent compared with the prior year's quarter, as a 5 percent increase in average revenue per unit was offset by a 4 percent decline in total volume;
• railway operating expenses were $1.9 billion, down $12 million, compared with the same period last year, as fuel price declines and lower purchased services and rents were offset by increased depreciation expense;
• railway operations income was $1.1 billion, which rose 4 percent year-over-year, and marked a second-quarter record; and
• the railway operating ratio, or operating expenses as a percentage of revenue, was 63.6 percent — a second-quarter record.
NS Chairman, President and Chief Executive Officer James Squires noted that the company's "strong financial and operational performance" in the quarter was achieved while the railroad finalized its preparations for its new operating plan known as TOP21.
"This execution reflects the strength of our team, commitment to our customers, and power of our balanced strategic plan to deliver enhanced shareholder value," said Squires in a press release.
Earlier this week, NS announced that its transition to TOP21 went smoothly.
Contact Progressive Railroading editorial staff.