NORFOLK, Va. - With its freight volume off 20 percent because of the recession, Norfolk Southern Corp. reported Tuesday that its profit for the first quarter of 2009 dropped 39 percent, according to the Virginian Pilot.
The Norfolk-based railroad's income for the January-to-March period fell to $177 million from $291 million in the first quarter of 2008. It earned 47 cents per share in the quarter, down from 76 cents a year earlier.
The results missed Wall Street expectations. Thomson Reuters said analysts expected profit of 54 cents per share.
"On the face of it, it's pretty good results given how tough this quarter was. We've never seen volumes like this before," said Anthony Hatch, a New York-based independent railroad analyst. "But, on the other hand, unlike the two railroads that have reported already, this is slightly below what... the consensus earnings expectation was."
Norfolk Southern released its earnings after the close of the New York Stock Exchange. In trading Tuesday, its shares rose $1.72 to close at $37.37.
Norfolk Southern's quarterly railway operating revenues dropped 22 percent to $1.94 billion from $2.5 billion the same quarter a year ago, which the company attributed to a 20 percent reduction in volume and lower fuel-related revenues.
"Current economic conditions were clearly reflected in Norfolk Southern's first-quarter results," Wick Moorman, the company's CEO, said in a prepared statement. "We are responding by aggressively controlling costs, while enhancing our service and continuing to invest in projects that will drive future growth. This approach will position us to participate in the economy's eventual recovery as we tightly manage the company in the face of an ongoing reduction in railway traffic volumes."
Revenue plunged in all three of its shipping sectors:
Down 28 percent in general merchandise, which includes autos, building materials, agricultural products and other categories, to $975 million.
Down 25 percent in intermodal, which includes its carriage of international shipping containers and truck trailers, to $366 million.
Down 9 percent in coal, to $602 million.
To keep up with falling revenue, the railroad cut operating expenses 19 percent to $1.56 billion from $1.92 billion a year earlier.
The company's Norfolk Southern Railway subsidiary is the fourth-largest railroad in the country, operating about 21,000 route miles in 22 states, the District of Columbia and Ontario, Canada. It serves every major container port in the eastern United States.
Also on Tuesday, Norfolk Southern declared its regular dividend of 34 cents a share, payable on June 10 to shareholders of record as of May 1.
(This item appeared April 22, 2009, in the Virginian Pilot.)
NEW YORK -- Railroad Norfolk Southern says it expects shipping demand, which has plunged as the recession has worsened, to approach its worst level this quarter and possibly start to improve as early as the second half of this year.
Chief Executive Wick Moorman said in a conference call with analysts and reporters on Wednesday that the company is still seeing "significant pressure" on volumes in the second quarter, but predicted declines might bottom out before the quarter ends in May.
Moorman said demand could improve as early as the back half of this year, as stimulus money starts spurring business. Rail demand picked up slightly when federal stimulus dollars were spent last year, but later plunged to levels worse than they were before.
(The preceding was distributed April 22, 2009, by the Associated Press.)
Phew...that's a relief! Hope they keep ya band Fred. We couldn't have guys like HogBob on our rails either. Ya might's well join that exclusive club.
BAND from other than home road! At least your own outfit keeps ya movin'! Norfolk Southern 1Q results spur market churn Shares of Norfolk Southern rebounded Wednesday after falling in after-market trade Tuesday, when the Class I railroad said its first-quarter net income was $177 million, or 47 cents per diluted share, compared with $291 million, or 76 cents per diluted share, for the first quarter of 2008. Operating revenue fell 22%, to $1.9 billion compared with the first-quarter of 2008, mostly due to a 20% decline in traffic, as well as lower fuel-related revenue. NS's operating ratio rose to 80.3%, up from 76.9% in the first quarter of 2008.
__________________
Hmm. That address doesnt look right. It looks like the link pointing here was faulty.
