NS reports fourth quarter and full-year 2014 financial results

Railway and intermodal provider set records for revenues and earnings in 2014.    Norfolk Southern Corp., parent company of Norfolk Southern Railway, has reported its fourth quarter and full-year financial results for 2014.
   The company’s net income for Q4 2014 was $511 million, down less than half a percent year-over-year from $513 million in Q4 2013. Norfolk Southern increased net income for the entire 2014 year by 5 percent, from $1.9 billion to $2 billion, a new record for the company. It also set a new high in 2014 for diluted earnings per share at $6.39, a 6 percent increase from $6.04 per diluted share for 2013.
   For the fourth quarter, Norfolk Southern reported railway operating revenues of $2.9 billion and income from railway operations of $891 million. Gains in merchandise ($1.7 billion, up 3 percent from Q4 2013) and intermodal revenues ($649 million, up 5 from Q4 2013) were offset by weaker coal revenues ($543 million, down 15 percent from Q4 2013), according to a statement from the company. Total volume for the quarter was up 4 percent due to increases in intermodal and merchandise traffic of 6 percent and 5 percent, respectively, compared with the same period in 2013.
   Railway operating revenues for the year amounted to $11.6 billion, 3 percent higher than 2013, and total income from railway operations was $3.6 billion. General merchandise revenues increased by 6 percent to $6.7 billion and intermodal revenues increased by 7 percent to $2.6 billion, while coal revenues decreased by 6 percent to $2.4 billion. Total traffic volume for 2014 increased 5 percent compared to 2013, with increases in merchandise and intermodal traffic of 5 percent and 8 percent, and a 5 percent decrease in coal volume compared to 2013.
   Norfolk Southern CEO Wick Moorman said the company “delivered another solid quarter of financial performance, capping a record-setting year during which our company achieved its best results for revenues, operating income, net income, earnings per share, and operating ratio. For 2015, we plan to invest $2.4 billion in capital investments to maintain the safety and quality of our rail network, enhance service, improve operational efficiency, and support growth opportunities.”