Railroad operator Norfolk Southern Corp. (NSC) on Wednesday reported a 21 percent increase in profit for the second quarter from last year on higher traffic volume. Earnings per share for the quarter beat analysts' expectations.
Wick Moorman, CEO of Norfolk Southern said, "Norfolk Southern delivered excellent financial performance during the second quarter, reporting the highest railway operating revenues in its history. We see continued strength across most of our business segments and are optimistic that overall economic conditions will drive growth."
The Norfolk, Virginia-based company's net income for the second quarter was $562 million or $1.79 per share, up from $465 million or $1.46 per share in the year-ago period.
On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $1.74 per share for the quarter. Analysts' estimates typically exclude special items.
Railway operating revenues for the second quarter increased 9 percent from last year to $3.04 billion, driven by an 8 percent increase in volume. Analysts had a consensus revenue estimate of $3.03 billion for the quarter.
The railway operating ratio, or operating expenses as a percentage of revenue, improved 5 percent from last year to 66.5 percent.
General merchandise revenues for the quarter increased 8 percent to $1.7 billion. Shipments of metals and construction, chemicals, and agricultural products fueled a 7 percent increase in traffic volume.
Coal revenues for the quarter rose 7 percent to $672 million, with volume up 3 percent. The increase was the result of higher demand for utility coal from stockpile replenishment in response to a severe winter and higher natural gas prices, which offset lower export volume.
Intermodal revenues increased 11 percent to $650 million and volume increased 11 percent.
NSC closed Tuesday's trading at $107.61, up $1.39 or 1.31 percent on a volume of 1.62 million shares.
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