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 increased to $750 million, a 1,315% increase compared to $53 million in the same quarter last year. This improvement is primarily attributed to insurance recoveries related to the Eastern Ohio incident and effective cost management, particularly in fuel and purchased services.
The operating ratio improved to 61.7% from 92.9% in the prior year, indicating greater efficiency in managing operating expenses relative to revenues. This improvement is further highlighted by the adjusted operating ratio of 67.9%, excluding the impact of the Eastern Ohio incident.
Railway operating revenues decreased slightly to $2.993 billion from $3.004 billion, a decrease of -%. However, this was more than offset by a substantial decrease in railway operating expenses, which fell by 34% to $1.847 billion, driven by lower fuel expenses and reduced costs for purchased services and equipment rents.