Norfolk Southern Q3 Profit Rises, But Results Miss Estimates - Quick Facts

(RTTNews) - Norfolk Southern Corp. (NSC) reported third-quarter net income of $559 million, 16 percent higher than $482 million for the same period of 2013. Earnings per share were $1.79, up 17 percent compared with $1.53 per share in the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.83 per share for the quarter. Analysts' estimates typically exclude special items.

Income from railway operations was $998 million, 18 percent higher compared with third-quarter 2013.

Total railway operating revenues for the quarter grew to $3.023 billion from $2.824 billion in the previous year. Wall Street expected revenues of $3.07 billion for the quarter.

General merchandise revenues reached $1.7 billion, a 10 percent increase compared with the third quarter of 2013, driven by volume gains in all markets, with particular strength in chemicals, automotive, metals and construction, and agriculture.

Coal revenues declined 2 percent to $626 million in the third quarter compared with the same period of 2013. A weak global export market and mild weather and lower natural gas prices in the utility market combined to decrease volume by 2 percent.

"Norfolk Southern reported another record-setting quarter during which we achieved our best third-quarter results in revenues, operating income, net income, earnings per share, and operating ratio. Higher traffic volumes along with continued gains in productivity drove these excellent results," said CEO Wick Moorman.