Bidness Etc - Norfolk Southern Reports Q4 Earnings

Railroad topped the Street’s forecast of earnings but missed revenue estimates

U.S. premier transportation company, Norfolk Southern Corporation (NYSE:NSC) announced on Monday its last quarterly financial result, as the company topped the Street’s forecast for earnings but fell short of the net sales forecast.

The American railroad’s total railway operating revenues plunged 0.3% on year-on-year to $2.87 billion in the last quarter of 2014, from $2.88 million. The company fell short of market expectation of $2.94 billion revenues

Net revenues of the company for the fourth quarter of 2014 were $5.11 million ($1.64 per share), compared to $5.13 ($1.65 per share) million in the same quarter last year, year-on-year fall of 0.4%. Earnings per share of the company remained flat over the periods of time, beating the Street’s forecast of $1.63 EPS.

"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," Norfolk CEO Wick Moorman said in the quarterly earnings report.

General Merchandise segment’s revenue rose 3.45% YoY to $1.67 billion in the fourth quarter, from $1.622 million, the chemical product’s transportation increase by 11% YoY. This section of General Merchandise segment contributes a major portion of the revenues. The agricultural product’s transportation fell by 2% YoY.

Intermodal segment’s sales grew 5% YoY to $649 million in the last quarter on 2014, while Coal segment’s sales plumped 15.3%, from $641 million to $543 million over the same period.

Due to growth in the General Merchandize and Intermodal segments of the company, the railroad’s volumes surged 4%.

Railway Operating Expenses fell by 1.05% YoY in the last quarter, from 2,000 million to 1979 million while Income from Railway Operations mounted 1.13%. According to the company, due to poor exports and decline in Coal segment’s volumes the revenues fell.

The company is primarily involved in transportation of raw materials, intermediate goods, and finished products via rail carriers through interchange from and to US in Southeast, East, and Midwest. Its share price mounted 1.20% to 106.04 at 3.20PM EST in New York after the company announced its quarterly result.

The main operations of the company involve Coal, Railroad operations, General Merchandise, Non-carrier operations and Passenger operations. Norfolk Southern Corporation also transports freight overseas through multiple ports from Atlantic and Gulf Coast. The Company also provides logistics services along with offering intermodal network, mainly for the eastern half in States.