Norfolk Southern lowers 3rd quarter expectations

Norfolk Southern lowers 3rd quarter expectations Norfolk Southern Corp. said today its third quarter net income would be negatively impacted by rising crude oil prices and a recently enacted Illinois tax legislation.
   The railroad said the Illinois legislation modifies the way in which transportation companies apportion their taxable income to the state. The non-cash charge is expected to decrease third quarter net income by about $19 million.
   Meanwhile, Norfolk Southern’s synthetic fuel-related investments are estimated to provide less net benefit than previously reported in the second quarter due to the higher cost of oil. The company expects third quarter net benefits from its investments of about $7 million, which is about $11 million, less than previously projected.
   Norfolk Southern will report its third quarter results on Oct. 24 when it expects its diluted earnings per share to be 97 cents, about 5 percent below the same quarter 2006.