The increase in net income at the Norfolk, Va.-based Class I railroad was driven primarily by an 11 percent rise in income from railway operations, according to Norfolk Southern’s most recent financial statements.
Virginia-based Class I railroad operator Norfolk Southern Corp. reported third quarter net income $506 million, up 10 percent compared to the same three-month period in 2016, according to the company’s most recent financial statements released Oct. 25.
The increase was driven, the company said, by an 11 percent rise in income from railway operations to $911 million, which yielded a record quarterly operating ratio of 65.9 percent. Diluted earnings per share (EPS) for the quarter rose 13 percent year-over-year to $1.75 per share.
Railway operating revenues rose 6 percent to $2.7 billion compared with third quarter 2016, as overall volumes were 4 percent higher, something that NS said reflects growth in its major commodity categories, coal and intermodal.
Operating expenses during the quarter increased $55 million, or 3 percent, compared with third quarter 2016, to $1.8 billion.
The railroad’s operating ratio, or operating expenses as a percentage of revenues, stood at 65.9 percent, an all-time quarterly record, according to NS.
“Norfolk Southern continues to deliver strong financial results,” Norfolk Southern Chairman, President and CEO James A. Squires said in a statement. “We are unwavering in our commitment to improve productivity as demonstrated by seven consecutive quarters of year-over-year improvement in our operating ratio.”
For the first nine months of 2017, NS saw its net income surge 15 percent to $1.4 billion compared with the same period a year ago. Record diluted earnings per share of $4.93 were 17 percent higher than in the prior-year period, with the strong results reflecting 11 percent growth in income from railway operations and a record nine-month operating ratio of 67.4 percent.
“Our balanced approach focuses on increasing efficiency and delivering a strong customer service product, giving us the ability to achieve our goals and deliver sustainable shareholder value,” Squires said.
Norfolk Southern earnings rise 10% in Q3 2017
