Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-01-22/norfolk-southern-tops-estimates-as-container-cargoes-rise

Bloomberg News

Norfolk Southern Tops Estimates as Container Cargoes Rise

January 22, 2013

Norfolk Southern Corp. (NSC:US), the second- largest U.S. eastern railroad, posted fourth-quarter profit that topped analysts’ estimates as container-car shipments curbed the effects of falling coal revenue.

Net income (NSC:US) dropped 14 percent to $413 million, or $1.30 a share, from $480 million, or $1.42 a year earlier, the Norfolk, Virginia-based company said today in a statement. That topped the average estimate (NSC:US) of $1.19 from 27 analysts surveyed by Bloomberg.

Profit at Norfolk Southern, which got 31 percent of its 2011 revenue from coal, has been pressured as utilities switch to cheaper natural gas and the European economic slump trims metallurgical exports. Coal cargoes at the largest North American rail carriers fell about 14 percent in the quarter, and 11 percent at Norfolk Southern, according to data from the Association of American Railroads.

“If you look outside of coal, they have shown very strong growth,” Walter Spracklin, a Toronto-based analyst at Royal Bank of Canada, said in a telephone interview. “Intermodal is a bright star in Norfolk Southern’s portfolio.”

Revenue from coal in the fourth quarter dropped 23 percent to $657 million, as coal carloads fell 13 percent, Norfolk Southern said today. Container-shipment sales climbed 5 percent to $584 million, while volumes rose 4 percent.

Total sales fell 4 percent to $2.68 billion, compared with the average estimate from analysts of $2.67 billion.

To contact the reporter on this story: Brooke Sutherland in New York at bsutherland7@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus