NORFOLK SOUTHERN REPORTS SECOND QUARTER RESUTLS

NORFOLK SOUTHERN REPORTS SECOND QUARTER RESUTLS

   Norfolk Southern Corp. said its second-quarter net income dropped 8 percent to $107 million, which Norfolk, Va.-based railroad attributed to the nation's continued economic downturn.

   The year-earlier net results, however, included a $17-million gain from the sale of interests in oil and gas properties. Excluding the gain, the second quarter results would make an 8-percent increase over the second quarter of 2000.

   Operating revenues were $1.59 billion for the second quarter, equal to the year earlier period, despite a 4 percent decrease in carloads.

   Coal revenues climbed 5 percent in the second quarter, following a 9-percent climb in the first.

   For the first six months of 2001, net income was $181 million, compared to $68 million for the year-earlier period. First-half results included an after-tax gain of $13 million related to the 198 sales of North American Van Lines Inc. The first half of 2000 results included a work force reduction charge that lowered new income by $62 million.

   First half operating revenue rose slightly to $3.13 billion, from $3.10 billion. Operating expenses fell to $2.65 billion, from $2.79 billion.