Norfolk Southern’s net income up 23%

Norfolk Southern’s net income up 23%   Higher traffic volumes helped Norfolk Southern Corp., parent of Norfolk Southern Railway Co., raise its first quarter net income 23 percent to $194 million from $158 million in the year-earlier quarter. Railway operating revenues for the first quarter rose 16 percent to a record $1.96 billion, while operating income from railway operations also increased 16 percent to $403 million. Traffic volume was up approximately 106,000 units or 6 percent. Norfolk Southern said its railway operating expenses were up 16 percent to $1.6 billion caused by costs associated with increased traffic volume, higher diesel fuel prices and expenses related to the Graniteville derailment. First quarter general merchandise revenue rose 12 percent to a record $1.1 billion, as all market groups, with the exception of automotive, reported double-digit increases. Intermodal revenues reached a record $408 million, up 24 percent. Norfolk Southern said it was the fifth consecutive quarter during which intermodal showed double-digit revenue growth.