Norfolk Southern reports financial results for 3Q15.
Net income fell compared to the same quarter last year. In 3Q14, net income was US$559 million (US$1.79 per diluted share), yet it totalled US$452 million (US$1.49 per diluted share) for 3Q15. Net income was reduced by US$23 million due to US$37 million of expenses associated with restructuring the company’s Triple Crown Services subsidiary and closing NS’ Roanoke, Va., office.
Coal revenues were US$482 million – 23% lower compared with 3Q14. The company reported that a weak global export market and lower natural gas prices in the utility market combined to decrease volume by 16%.
Railway operating revenues saw a 10% decline to US$2.7 billion, largely due to reductions in fuel surcharge revenues in each of NS’ three commodity groups, and continued reductions in coal shipments.
A combination of lower fuel surcharges and fewer domestic shipments reduced revenues and this led to intermodal revenues being US$621 million – 7% lower than in 3Q14.
Railway operating expenses decreased 7% to US$1.9 billion compared with the same quarter of 2014 – mainly a result of lower fuel costs.
Income from railway operations saw a 18% decrease from its total in 3Q14, coming in at US$822 million.
James A. Squires, Chairman, President and CEO, commented: “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."
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/handling/29102015/norfolk-southern-financial-results-for-3q15-3086/