NORFOLK (dpa-AFX) - Railroad operator Norfolk Southern Corp (NSC), Wednesday reported a decline in first-quarter profit as harsh winter weather hurt shipments, with the prior year recording one-time gains from the sale of land. However, earnings for the quarter topped Wall Street estimates, while revenue missed expectations.
'Following the extreme winter weather across the U.S. rail network which impacted first-quarter results, we are seeing a rebound in shipments across all of our business,' said Norfolk Southern CEO Wick Moorman.
The Norfolk, Virginia-based company posted first-quarter net income of $368 million or $1.17 per share, compared with $450 million or $1.41 per share last year.
On average, 25 analysts polled by Thomson Reuters expected earnings of $1.15 per share for the quarter. Analysts' estimates typically exclude one-time items.
Results for the prior-year quarter included a $60 million gain from a land sale.
Revenue for the first quarter slid 2 percent to $2.70 billion from $2.74 billion in the prior year. Eighteen analysts had a consensus revenue estimate of $2.74 billion for the quarter.
General merchandise revenues for the quarter rose a modest 1 percent to $1.6 billion, despite overall volume declining 1 percent.
The company said increased crude and liquefied petroleum gas shipments were offset by lower shipments at automotive, metals and construction, and paper and forest segments.
On Tuesday, bigger rival Canadian National Railway Co (CNR.TO, CNI) reported a better-than-expected increase in first-quarter profit, due mainly to more shipments of petroleum and chemicals as well as other products.
Also Canadian Pacific Railway Ltd (CP.TO) (CP) reported a 17 percent increase in quarterly profit, led by higher revenues and lower costs.
Norfolk Southern stock is trading at $94.64, down $2.28 or 2.35%, on a volume of 1.4 million shares on the NYSE.
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