The Class I railway also reported operating revenues of $2.7 billion for the quarter, up 7 percent year-over-year, as overall volumes ticked up 5 percent thanks to intermodal, coal and merchandise growth.
Norfolk Southern Corp. reported a net income of $3.9 billion and diluted earnings per share of $13.79 for the fourth quarter of 2017, according to the rail line’s most recent financial statements.
For the full year, net income stood at $5.4 billion and diluted earnings per share totaled $18.61. These results include effects of the enactment of the Tax Cuts and Jobs Act of 2017, which added $3.4 billion to net income in both periods, said Norfolk Southern.
Excluding the effects of tax reform, fourth quarter 2017 adjusted net income reached $486 million compared with $416 million in the fourth quarter of 2016. For the full year, adjusted net income reached $1.9 billion versus $1.7 billion in 2016, the rail line said.
In the fourth quarter of 2017, railway operating revenues increased 7 percent year-over-year to $2.7 billion, as overall volumes ticked up 5 percent due to growth in all three major commodity categories, including intermodal, coal and merchandise.
Railway operating expenses for the quarter decreased $74 million, or 4 percent, to $1.7 billion compared with the fourth quarter of 2016. The effects of tax reform decreased railway operating expenses $151 million, offsetting increased incentive compensation and higher fuel prices.
“Norfolk Southern is open for growth, and we are optimistic as we head into 2018 that the current economic environment will provide an opportunity for continuing growth,” said James A. Squires, Norfolk Southern chairman, president and CEO. “The hard work and dedication of our employees in executing our Strategic Plan are clearly evident as we continue to achieve record results and deliver on the commitments we made to our shareholders. We remain steadfast in our commitment to deliver on the goals in our Strategic Plan, of which positioning ourselves for growth is a key element. We are laser-focused on execution of our strategy and are confident that we can achieve our targets by 2020 or sooner.”
In 2017, Norfolk Southern invested over $1.7 billion in capital, such as reinvesting in the maintenance of its rail infrastructure and supporting economic growth. Looking forward in 2018, Norfolk Southern said it plans to invest $1.8 billion to maintain the safety of its rail network, enhance service, improve operational efficiency and support growth.