NORFOLK — Despite increased operating expenses, Norfolk Southern Corp. is reporting record second quarter profits.
The parent company of Norfolk Southern Railroad reported a net income of $710 million, a 43 percent increase over the second quarter last year, with an 18 percent increase coming from railway operations.
Diluted earnings per share were $2.50, up 46 percent year-over-year and a second quarter record.
“Our second quarter results reflect strong growth in our business and our sustained commitment to improving financial performance,” said James A. Squires, Norfolk Southern chairman, president and CEO. “We are committed to delivering financial results that benefit our shareholders and service that benefits our customers.”
Railway operating revenues were $2.9 billion, a 10 percent rise from the same quarter one year ago, with an increase in volume of six-percent over all three major commodity categories of intermodal, merchandise and coal.
Quarterly operating expenses for the company’s railway operation also increased by six-percent, up $107 million to a total of $1.9 billion, with the increases due to higher fuel prices, higher incentive compensation, and increased costs associated with overall lower network velocity offset, in part, by refund claims for prior years’ employment taxes paid on equity awards.
Income from the railway operations alone were $1 billion, up 18 percent from the same period in 2017.
Norfolk Southern Corp. (NYSE: NSC) and its Norfolk Southern Railway Company subsidiary operates approximately 19,500 route miles in 22 states and the District of Columbia, serving every major container port in the eastern United States while providing efficient connections to other rail carriers, according to the company.
