NORFOLK SOUTHERN NET INCOME SLIDES 20%
Norfolk Southern Corp. reported a third-quarter net income of $79 million, down 20 percent from the third quarter of 2000.
Railway operating revenues were $1.51 billion, down 2 percent. Income from railway operations was $245 million, up 16 percent.
The third quarter of 2000 included a gain of $46 million from the sale of timber properties. Without this gain, third quarter net income rose 49 percent.
“An improvement in revenue yield and effective cost controls allowed us to improve operating income by 16 percent in the third quarter, although continued weakness in the U.S. economy impacted car loadings,” said David R. Goode, chairman, president and chief executive officer.
Coal revenues improved 1 percent in the third quarter and climbed 6 percent in the first nine months. General merchandise revenues declined 2 percent in the quarter and 3 percent in the nine-month period. Automotive revenues declined during both periods due to soft sales and related production cutbacks. Intermodal revenues declined 5 percent in the quarter but were 2 percent ahead of last year for the first nine months.
For the first nine months, net income was $260 million, including an after-tax gain of $13 million related to the 1998 sale of NS's former trucking subsidiary, North American Van Lines Inc. This is a 56 percent increase from $167 million net income for the first nine months of 2000, which included a work-force reduction charge and gains on the sale of timber rights and certain interests in oil and natural gas properties.
The railway operating ratio for the quarter improved to 83.8 percent compared to 86.3 percent for the same period of 2000. For the first nine months, the operating ratio improved to 84.2 percent compared with 88.8 percent in 2000.