NS notches 2Q earnings record

Norfolk Southern Tuesday reported record second-quarter net income of $557 million, 42% higher than the $392 million notched during the same quarter in 2010. Diluted earnings per share were a record $1.56, up 50% compared with $1.04 per diluted share earned in the same period a year ago. NS said the results reflect favorable, non-recurring income tax-related benefits totaling $63 million, or $0.18 per share.

The company’s operating ratio improved to 69.5%, a second-quarter record, compared with 69.8% during the second quarter of 2010. Operating revenue increased 18% to $2.9 billion, also a second-quarter record.

“Norfolk Southern delivered excellent financial results in the second quarter, setting all-time records for net income and earnings per share, as well as second-quarter records for revenues, operating income, and operating ratio,” said Chairman, President, and CEO Wick Moorman. “We’re seeing opportunities in the global economy, and we are moving forward with initiatives to drive business growth, productivity, and efficiency across our company.”

General merchandise revenue, at $1.4 billion, was up 12% from the year-ago quarter, while coal revenue rose 28% to $893 million compared with the year-ago period. Intermodal revenue of $540 million was up 20% from a year ago.

Railway operating expenses for the quarter were $2.0 billion, 17% higher compared with the same period of 2010, which NS attributed primarily to increased fuel expenses and compensation and benefits costs.