NORFOLK (dpa-AFX) - Railroad transporter Norfolk Southern Corp. (NSC), said Tuesday its fourth-quarter earnings grew 19 percent as all segments registered double-digit growth, on improved freight rates. Partly offsetting the results were an increase in fuel and other costs, and higher tax liability. Revenues for the quarter, however, came in short of Street expectations. The Norfolk, Virginia-based company reported fourth-quarter net income of $480 million or $1.42 per share, compared to $402 million or $1.09 per share last year. On average, 26 analysts polled by Thomson Reuters expected the company to earn $1.40 per share for the quarter. Analysts' estimate typically exclude special items. Total railway operating revenues for the quarter increased 17 percent to $2.80 billion from $2.39 billion in the prior year, as a result of a 11 percent increase in revenue per unit. Twenty-one analysts expected revenue of $2.84 billion for the quarter. General merchandise revenues grew 13 percent from last year to $1.4 billion, while Coal rose a healthy 24 percent to $850 million. General merchandise traffic edged up 1 percent in the quarter and Coal 3 percent. Intermodal revenues for the quarter were up 18 percent to $554 million from the prior year, with traffic volume up 11 percent. The company's Railway operating expenses for the quarter escalated 14 percent to $2 billion, due to increased fuel expenses that climbed $95 million, and higher traffic-volume related costs. Railway operating ratio, which measures the percentage of revenue that is consumed by expenses, improved 2 percent to 71.4 percent compared to the same quarter a year earlier. The company's income tax provision for the quarter was higher at $243 million, compared to $160 million in the prior year. Going forward, CEO Wick Moorman said, 'Our strong capital program of $2.4 billion will include substantial investments along our Crescent Corridor, a public-private partnership to create a high-capacity, truck-competitive intermodal freight rail route between the Gulf Coast and Northeast.' Yesterday, Norfolk Southern's peer CSX Corp. (CSX) reported a 6 percent rise in fourth-quarter profit as tax benefits and lower interest expense offset an erosion in operating margin. Norfolk Southern's earnings and revenue missed Street expectation. Earlier today, bigger rival Canadian National Railway Co. (CNI,CNR.TO) said its fourth-quarter earnings grew 18 percent, on higher freight volumes. Both earnings per share and revenue topped analysts' expectations. It also forecast higher earnings for 2012. NSC closed Tuesday at $75.48, down $0.47 or 0.62%, on a volume of 3.8 million shares on the NYSE. In after hours, the stock further lost $2.23 or 2.95%.
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