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Norfolk Southern profit off 23pc to US$433 million as sales fall 11pc

THE Norfolk Southern (NS) railway's second quarter net profit fell 23 per cent year on year to US$433 million, drawn on revenues of $2.7 billion, which were down 11 per cent.

Intermodal was down three per cent to $633 million and coast was off.

But coal revenues were the real disappointment, down 33 per cent to $453 million, with volumes down 21 per cent and all revenue was down because of lower fuel surcharges.

The decline in coal volumes also dampened the railway's operating revenues. Coal in general had a weak season due to low natural gas prices.

"While we face short-term pressure, Norfolk Southern is well positioned to continue improving service, which will reduce costs," said CEO James Squires.

"Growth within the intermodal franchise, consumer spending, housing-related momentum and improved manufacturing activity all support an optimistic longer-term outlook," he said,

General merchandise revenues fell five per cent to $1.6 billion.

Chemical freight was flat at $454 million while agriculture produce was down two per cent to $379 million. Metals and construction materials were down 16 per cent to $344 million while automotive fell six per cent to $254 million and forest products were off two per cent to $196 million.