Norfolk Southern Reports Record 4Q Net Income of $513 Million, Up From $413 Million in 4Q 2012
Date Posted: January 24, 2014
Norfolk, VA—Norfolk Southern reported record fourth-quarter 2013 net income of $513 million, or $1.64 per diluted share, 24 percent higher compared with $413 million, or $1.30 per diluted share, earned in the fourth quarter of 2012.
The railway operating ratio, or operating expenses as a percentage of revenue, improved 5 percent to 69.4 percent.
“Norfolk Southern’s team of safety and service-oriented employees drove our record-setting fourth-quarter results through increased productivity, efficient network operations, and continued revenue gains,” said Norfolk Southern CEO Wick Moorman.
”We’re seeing the results of our investments in network capacity and technology enhance our ability to offer superior service to all of our customers.
Moorman continued: “In 2014, we plan to invest $2.2 billion, a 12 percent increase over 2013, to maintain safe railway operations, purchase locomotives and freight cars, and support growth and productivity initiatives.”
Fourth Quarter 2013 Summary
Operating revenues increased to $2.9 billion, marking a 7 percent jump compared with fourth-quarter 2012.
Strong intermodal, chemical, automotive, and agricultural shipments more than offset declines in coal traffic to drive total volumes up 4 percent.
General merchandise revenues were $1.6 billion, 12 percent higher than the same period last year. Strong crude by rail shipments and expanded automotive production helped boost traffic volume by 8 percent in the quarter.
Coal revenues were $641 million, 2 percent lower compared with the fourth quarter of 2012, the result of an 8 percent decline in volumes.
Intermodal revenues increased to $618 million, a 6 percent increase over 2012. Growth in domestic and international business pushed traffic volume up 6 percent in the quarter compared with the same period of 2012.
Railway operating expenses were $2 billion, 2 percent higher than in the same period of 2012.
The operating ratio was 69.4 percent, a 5 percent improvement over the same quarter in 2012.
Income from railway operations was $881 million, 23 percent higher compared with fourth-quarter 2012.
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