Norfolk Southern: Earnings drop reflects recession
Norfolk Southern reported second quarter net profit of $247 million compared to $453 million in the same 2008 period.
Railway operating revenue was $1.9 billion in the quarter compared $2.8 billion in the same 2008 period.
“Second-quarter results obviously reflect the impact of the recession,” said Norfolk Southern Chief Executive Officer Wick Moorman. “However, the measures we are taking to control expenses while maintaining our industry-leading service levels have enabled us to post solid second-quarter results, while at the same time we continue to invest in projects that position us for the eventual economic recovery.”
General merchandise revenue was $978 million down 33 percent from the same period last year. Coal revenue declined 34 percent to $511 million and intermodal revenue fell 31 percent to $368 million.