Norfolk Southern reports third-quarter 2015 results

[NS Newsfeed]

FOR IMMEDIATE RELEASE

October 28, 2015



Norfolk Southern reports third-quarter 2015 results



THIRD-QUARTER 2015 RESULTS



·         Railway operating revenues totaled $2.7 billion.

·         Income from railway operations was $822 million.

·         Net income totaled $452 million.

·         Diluted earnings per share were $1.49.

·         The railway operating ratio was 69.7 percent.



NORFOLK, Va. – Norfolk Southern Corporation (NYSE: NSC)

today reported financial results for third-quarter 2015. Net income

for the quarter was $452 million, or $1.49 per diluted share,

compared with $559 million, or $1.79 per diluted share earned in the

third quarter last year.



Third-quarter results included $37 million of expenses associated with

restructuring the company's Triple Crown Services subsidiary and

closing NS' Roanoke, Va., office, which together reduced net income by

$23 million, or $0.08 per diluted share.



"Norfolk Southern's third-quarter results reflect commodities markets

that continue to soften, as well as costs associated with

restructuring initiatives to strengthen our company going forward.

These pressures will linger in the fourth quarter, while traffic

volume to date continues to lag last year. However, looking ahead to

2016, we are confident that with a reasonably stable economy and our

own intense focus on service, returns, and growth, we are poised for

better results," said Chairman, President and CEO James A. Squires.



THIRD-QUARTER SUMMARY



·         Railway operating revenues declined 10 percent to $2.7 billion,

largely due to reductions in fuel surcharge revenues in each of

NS' three commodity groups, and continued reductions in coal

shipments. Overall volume declined 3 percent to 1.9 million units

for the quarter.



·         General merchandise revenues were $1.6 billion, 7 percent lower

than the same period last year. Volume declined 1 percent largely

due to a 9 percent decline in metals and construction traffic due

to softer steel production. Four of the five general merchandise

commodity groups reported lower revenue results on a year-over-

year basis, principally the result of lower fuel surcharge

revenue:



§  Chemicals: $451 million, down 8 percent

§  Agriculture: $380 million, up 4 percent

§  Metals/Construction: $330 million, down 20 percent

§  Automotive: $246 million, down 3 percent

§  Paper/Forest: $203 million, down 3 percent



·         Intermodal revenues were $621 million, 7 percent lower compared

with third-quarter 2014, as lower fuel surcharges and fewer

domestic shipments combined to reduce revenues. Total volume

declined 1 percent.



·         Coal revenues were $482 million, 23 percent lower compared with

the third quarter of 2014. A weak global export market and lower

natural gas prices in the utility market combined to decrease

volume by 16 percent.



·         Railway operating expenses declined 7 percent to $1.9 billion,

primarily due to lower fuel costs, compared with the same period

of 2014.



·         Income from railway operations was $822 million, 18 percent lower

compared with third-quarter 2014.



·         The railway operating ratio, or operating expenses as a

percentage of revenue, was 69.7 percent, compared with 67.0

percent in the same quarter last year.