Norfolk Southern profit slides 7% in 3rd quarter

Norfolk Southern profit slides 7% in 3rd quarter Norfolk Southern Corp. today reported third quarter net income of $386 million, down 7.2 percent compared to $416 million in the same period last year.
   The latest result included the effects of Illinois tax legislation enacted during the three-month period that reduced the railroad’s profit by $19 million.
   “Norfolk Southern continued to deliver solid results in the third quarter,” said Chief Executive Officer Wick Moorman. “Softness in certain segments of the economy resulted in reduced traffic volumes, which we were substantially able to offset through pricing gains and cost control. We remain confident in the overall strength of our franchise, and we continue to take a long-term perspective as we plan new traffic corridors, improve technology, and support our workforce with the tools necessary to provide superior service.”
   Third quarter railway operating revenues were $2.35 billion, down 1.7 percent compared with the same period a year earlier. Fewer intermodal and coal shipments as well as continued weakness in the automotive-related and housing industries contributed to a 4 percent year-on-year reduction in traffic volume.
   General merchandise revenues were $1.29 billion, a third-quarter record and an increase of 1 percent compared with the same period last year, despite a 3 percent decline in volume.
   Coal revenues declined 3 percent to $578 million in the quarter compared with the same period of 2006. Traffic volume was down 2 percent for the quarter.
   Intermodal revenues were $484 million, down 6 percent. Volume decreased by more than 51,000 units, or 6 percent, in the third quarter compared with the same quarter a year earlier.
   Railway operating expenses were $1.67 billion for the quarter, about even compared with third quarter 2006.
   After three quarters, Norfolk Southern's net income was down 2.8 percent at $1.07 billion, while revenue decreased 1.6 percent to $6.98 billion.
   Norfolk Southern Railway operates 21,000 route miles in 22 states, the District of Columbia and Ontario, Canada.