Norfolk Southern quarterly profit declines 6pc with 15pc fall in coal

THE Norfolk Southern railway posted a second quarter profit decline 5.9 per cent to US$524 million, dragged down by a 15 per cent plunge in coal revenue.

Intermodal revenue rose four per cent which helped offset the drop in coal business, keeping total revenue at $2.9 billion. The year-on-year earnings comparison also suffered from the $63 million tax benefit the company enjoyed in the second quarter of 2011.

The railway also reduced its operating expenses by three per cent to $1.9 billion compared to the same period last year, pulling down its operating ratio by two percentage points to a record 67.5 per cent.

"Our income from operations, diluted earnings per share and improved operating ratio all set records, despite the slow economic recovery and softness in our coal franchise," said CEO Wick Moorman.