NORFOLK SOUTHERN POSTS STRONG RESULTS

NORFOLK SOUTHERN POSTS STRONG RESULTS

   Norfolk Southern Corp., which operates Norfolk Southern Railway Co., the major eastern U.S. railroad, said Wednesday its earnings surged for the third quarter and nine-month period ended Sept. 30.

   Net income for the third quarter jumped 59 percent to 126 million. Operating revenues rose 6 percent to $1.6 billion, while income from railway operations improved 26.9 percent to $311 million. Operating expenses increased 2 percent to $1.29 million as the company's operating ratio improved 3.3 percentage points to 80.5 percent.

   Third-quarter general merchandise revenue rose 6 percent to $917 million, as all market groups reported increases, led by automotive and metals.

   Intermodal revenues for the quarter reached a record $310 million, up 11 percent over the third quarter of 2001. The growth reflects increases in both international and domestic business, particularly converting traffic from the highway, NS said.

   For the nine-month period, net income increased 27 percent to $331 million on operating revenue of $4.69 billion, up 1 percent. Income from railway operations rose 19.9 percent to $870 million, while operating expenses declined 2 percent to $3.82 billion. Operating ratio for the nine months improved 2.8 percentage points to 80.5 percent.

   General merchandise revenue increased 3 percent to $2.73 billion, while intermodal revenue rose 5 percent to $875 million.

   Norfolk Southern operates a 21,500-mile rail network in 22 states, the District of Columbia and the province of Ontario.