Jan. 24 (Bloomberg) -- Norfolk Southern Corp., the second- biggest railroad in the eastern U.S., posted a 19 percent gain in fourth-quarter profits after carloads increased.
Net income of $480 million, or $1.42 a share, compared with $402 million, or $1.09, a year earlier, the Norfolk, Virginia- based company said today in a statement. That included an $11 million benefit from state tax law changes. The average net income estimate from 14 analysts in a Bloomberg survey was $1.39.
Intermodal revenue advanced 18 percent from the same period last year as volumes climbed 11 percent. Norfolk Southern is benefitting as container shipments, which can move by truck, train and ship, move to railroads from the highway.
Class 1 railroads, the biggest by revenue in North America, are boosting rates as service improvements take hold and capacity tightens, according to Bloomberg Industries. Revenue at Norfolk Southern rose 17 percent to $2.8 billion, trailing analysts’ average estimate of $2.83 billion.
--Editors: James Langford, Jeffrey Tannenbaum
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