Sector: Industrials|Industry: Railroads|Market Cap: $53.80B|Employees: 20.7K
Norfolk Southern Corporation is a major freight railroad company operating primarily in the Southeast, East, and Midwest. They transport raw materials, intermediate products, and finished goods, including intermodal, agriculture, forest, consumer products, chemicals, metals, construction, and automotive. They also transport coal and have an extensive intermodal network in the eastern half of the U.S.
Net income for the third quarter of 2024 was $1,099 million, a substantial increase from $478 million in the same quarter of 2023. This is primarily due to lower operating expenses and gains on railway line sales, as well as insurance recoveries exceeding incremental incident-related expenses.
The railway operating ratio for the third quarter of 2024 was 47.7%, a significant improvement from 74.6% in the same quarter of 2023. This indicates improved efficiency in managing operating expenses relative to revenue.
Fuel expenses decreased to $216 million in the third quarter of 2024, down from $289 million in the same quarter of 2023, a decrease of 25%. This is attributed to lower locomotive fuel prices, partially offset by a slight decrease in consumption.