NORFOLK SOUTHERN BOOSTS 1ST-QUARTER EARNINGS

NORFOLK SOUTHERN BOOSTS 1ST-QUARTER EARNINGS

   Norfolk Southern Corp.'s first-quarter net income improved 16.2 percent to $86 million, which the Norfolk, Va.-based railroad said was due to reduced operating expenses and improved operating efficiency.

   Income from continuing operations jumped 41 percent to $86 million, while operating expenses were down 6 percent to $1.26 billion, including a $36-million decline in diesel fuel expenses. Operating revenues were off 2.7 percent, to $1.50 billion.

   The company's operating ratio improved 2.5 percentage points, to 84.2 percent.

   The year-over-year earnings improvement was 'achieved during a period marked by continuing economic slowness and weak coal demand,' said David R. Goode, chairman, president and chief executive officer. 'We made solid progress in strengthening service reliability and operating efficiency with the implementation of the Thoroughbred Operating Plan, our scheduled transportation plan for merchandise shipments.'

   General merchandise revenues were flat, at $869 million, for the first quarter, despite a 2-percent decline in carloads. Automotive posted a 7-percent gain due to record vehicle sales. Agricultural products rose 3 percent.

   Declines were seen in intermodal revenues, down 2 percent to $270 million, due to continued conversion of trailers to containers and the removal of a fuel surcharge imposed last year. There was also continued weakness in several business sectors impacted by the weakened national economy, including paper and forest products, construction materials and metals and chemicals, NS said.