NS: Record earnings, operating ratio at 67.5%

Norfolk Southern Corp. late Wednesday announced record third-quarter net income of $554 million, up 24% compared with the same period of 2010. Diluted earnings per share were a record $1.59, up 14%. 

Railway operating revenues rose 18% to $2.9 billion, primarily due to result of a 14% increase in revenue per unit. The operating ratio improved by 2.1 percentage points to a third-quarter record 67.5%.

“Norfolk Southern produced another outstanding quarter, setting all-time records for income from operations and earnings per share, while also establishing third-quarter records for net income and operating ratio,” said Norfolk Southern President and CEO Wick Moorman. “We continue to see modest improvement in most of our business groups, and we remain focused on the long-term enhancement of our franchise.”

General merchandise revenues were $1.4 billion, 12% higher compared with third-quarter 2010 results. Coal revenues increased 27%, to $899 million, compared with the same period last year. Intermodal revenues were $551 million, 19% higher compared with the third quarter of 2010.

Railway operating expenses for the quarter were $2.0 billion, 14% higher compared with the same period of 2010, primarily due to increased fuel expenses, which rose by $126 million, and compensation and benefits costs.

Income from railway operations climbed 26% to an all-time record $938 million compared with the same period last year.