Norfolk Southern increases net income 47%

Norfolk Southern late Wednesday reported third-quarter 2010 net income of $445 million, up 47% compared from third-quarter 2009, and diluted earnings per share of $1.19. up 47% The operating ratio improved by 3.2 percentage points to 69.6%.

“We experienced a fifth consecutive quarter of increased volumes,” said CEO Wick Moorman. “We continue to see an economy characterized by slow growth, but growth nonetheless. We remain confident that our focus on strengthening service, controlling costs, and investing in our rail infrastructure and equipment will drive long-term shareholder value.”

Third-quarter railway operating revenue improved 19% to $2.5 billion primarily as the result of a 15% increase in traffic volume.

General merchandise revenue was $1.3 billion, up 16 %. Coal revenue increased 24%, to $709 million, and intermodal revenue were up 19% to $464 million.

Railway operating expenses for the third quarter were $1.7 billion, an increase of 14%.