WORK FORCE REDUCTION CHARGE CAUSES NS FIRST-QUARTER LOSS
Norfolk Southern said a one-time work force reduction charge resulted in a net first-quarter loss of $48 million for the railroad.
Excluding the one-time pre-tax charge of $101 million, NS reported a net income of $14 million for the period ending March 31, compared to net income of $112 million for the year-earlier quarter.
The pre-tax charge, which reduced net income by $62 million, covered a voluntary retirement program, which was accepted by 919 of 1,180 eligible employees, effective March 1.
Railway operating revenues were $1.5 billion in the first quarter, up 45 percent from 1999. Intermodal revenues climbed 94 percent, strengthened by domestic trailer business, NS said. General merchandise revenue rose 46 percent, including a 146-percent increase in metals and a 50-percent increase in automotive. Coal revenues were up 22 percent.
Railway operating expenses jumped 85 percent to $1.47 billion, due to the work force reduction charge, higher fuel costs and costs related to the Conrail integration.
Operating ratio for the first quarter was 98.1 percent, compared to 77.0 for the year earlier. Excluding the pre-tax charge, first-quarter operation ratio was 91.4 percent.