Norfolk Southern’s 1st quarter net profit down 7%
Norfolk Southern Corp., parent of Norfolk Southern Railway Co., Wednesday reported first quarter net income of $285 million, down 6.6 percent compared to $305 million in the same quarter 2006.
Income from railway operations was $528 million, a 4.2 percent decrease from $551 million in the year-earlier period. Railway operating revenues totaled $2.25 billion, a 2.2 percent drop from $2.3 billion in the first quarter 2006.
The company said that continued weakness in the automotive and housing industries contributed to a 4 percent reduction in volumes during the quarter, compared with record volumes reported in the year-earlier period.
For the first quarter, general merchandise revenue was $1.2 billion, down 4 percent compared with the same period last year. Coal revenues reached $557 million, about even with the first-quarter 2006. Intermodal revenues were $462 million, down 1 percent.
“We are encouraged with our performance in the first quarter, especially in light of the softness in the economy,” said Wick Moorman, Norfolk Southern’s chief executive officer.
“We will be prepared as the demand for transportation services resumes its growth, and we are continuing to invest in safety, capacity and new technology to drive further improvements in service. We are also continuing to manage our cost structure and drive further efficiencies in our operation,” Moorman said.
The railway and its subsidiaries operate about 21,000 route miles in 22 states, the District of Columbia and Ontario, Canada, serving every major container port in the eastern United States and providing connections to western rail carriers.
Norfolk Southern’s share price rose 28 cents to $55.85 in morning trading Wednesday on the New York Stock Exchange.
