OREANDA-NEWS. Norfolk Southern Corporation (NYSE: NSC) today reported financial results for fourth-quarter and full-year 2014.

Net income for the quarter was USD 511 million, or USD 1.64 per diluted share, compared with USD 513 million, or USD 1.64 per diluted share, earned in fourth-quarter 2013. For the year, net income increased to a record USD 2.0 billion, 5 percent higher compared with USD 1.9 billion for 2013. Diluted earnings per share for 2014 were a record USD 6.39, up 6 percent compared with USD 6.04 per diluted share for 2013.

FOURTH-QUARTER 2014 RESULTS

Railway operating revenues totaled USD 2.9 billion.

Income from railway operations was USD 891 million.

Net income totaled USD 511 million.

Diluted earnings per share were USD 1.64.

The railway operating ratio was 69.0 percent.

2014 RESULTS SET RECORDS

Railway operating revenues reached USD 11.6 billion.

Income from railway operations was USD 3.6 billion.

Net income totaled USD 2.0 billion.

Diluted earnings per share were USD 6.39.

The railway operating ratio was 69.2 percent.

"Norfolk Southern delivered another solid quarter of financial performance, capping a record-setting year during which our company achieved its best results for revenues, operating income, net income, earnings per share, and operating ratio," said CEO Wick Moorman. "For 2015, we plan to invest USD 2.4 billion in capital investments to maintain the safety and quality of our rail network, enhance service, improve operational efficiency, and support growth opportunities."

FOURTH-QUARTER SUMMARY

Operating revenues were USD 2.9 billion, about even compared with fourth-quarter 2013, with gains in merchandise and intermodal revenues offsetting weaker coal revenues. Total volume was up 4 percent, or about 66,000 units, due to gains in intermodal and merchandise traffic.

General merchandise revenues were USD 1.7 billion, 3 percent higher than the same period last year. Volume grew by 5 percent, led by increases in shipments of chemicals and metals and construction. The five commodity groups reported mixed revenue results on a year-over-year basis:

◦Chemicals: USD 477 million, up 11 percent

◦Agriculture: USD 387 million, down 2 percent

◦Metals/Construction: USD 366 million, up 5 percent

◦Automotive: USD 253 million, even

◦Paper/Forest: USD 195 million, down 3 percent

Intermodal revenues increased to USD 649 million, 5 percent higher compared with fourth-quarter 2013. Growth in international and domestic business pushed traffic volume up 6 percent in the quarter compared with the same period of 2013.

Coal revenues were USD 543 million, 15 percent lower compared with the fourth quarter of 2013. A weak global export market and fewer shipments of coal to utilities combined to decrease volume by 6 percent.

Railway operating expenses were USD 2.0 billion, down 1 percent compared with the same period of 2013.

Income from railway operations was USD 891 million, a fourth-quarter record and 1 percent higher compared with fourth-quarter 2013.

The operating ratio, or operating expenses as a percentage of revenue, improved 1 percent to 69.0 percent, compared with the same quarter in 2013.

2014 SUMMARY

Railway operating revenues reached a record USD 11.6 billion, 3 percent higher compared with 2013, driven by a 5 percent increase in traffic volume.

General merchandise revenues rose 6 percent to USD 6.7 billion, and traffic volume increased 5 percent compared with the prior year.

Intermodal revenues increased to USD 2.6 billion, up 7 percent compared with 2013. Traffic volume was 8 percent higher for 2014 compared with 2013.

Coal revenues were USD 2.4 billion, down 6 percent, due to a 5 percent decline in traffic volume compared with 2013.

Railway operating expenses were USD 8 billion, up 1 percent compared with 2013.

Income from railway operations was a record USD 3.6 billion, 10 percent higher compared with 2013.

The operating ratio for the year was a record 69.2 percent, a 3 percent improvement compared with 71.0 percent in 2013.

About Norfolk Southern

Norfolk Southern Corporation is one of the nation's premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.