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NORFOLK SOUTHERN CORPORATION REPORTS RESULTS

 NORFOLK SOUTHERN CORPORATION REPORTS RESULTS
 NEW YORK, Jan. 29 /PRNewswire/ -- Norfolk Southern Corporation


(NYSE: NSC) today reported 1991 net income of $29.7 million, or 20 cents per share, reflecting a special charge in the fourth quarter of $680 million ($497.7 million after tax) for labor force reductions and asset write-downs.
 Norfolk Southern also announced that its open-market share purchase program will continue, but at a slower pace.
 For the fourth quaare would have been $3.57, up 4 percent from $3.43 in 1990 as a result of share purchases. Net income for the year would have been $527.4 million, down 5 percent from $556.1 million in 1990.
 For the fourth quarter, earnings per share for the quarter would have been $1.00, up 33 percent from 75 cents per share for the comparable 1990 quarter. Net income without the special charge would have been $143.1 million, up 22 percent from $117.1 million in the fourth quarter of 1990.
 The special charge includes $450 million for the estimated costs to achieve the reductions in employment and other labor savings permitted by labor agreements reached late in 1991 following a Presidential Emergency Board's recommendations.
 The charge also includes $187 million to write down the goodwill portion of the carrying value of Norfolk Southern's investment in North American Van Lines, Inc. This action was taken because of reduced profit margins resulting from intensely competitive conditions in today's motor carrier industry.
 In addition, a $43 million write-down for certain property to be sold or abandoned is included in the special charge.
 "These new labor agreements will boost our efficiency by affording greater flexibility in how we deploy our operating people," said Arnold B. McKinnon, chairman and chief executive officer. "We view the costs involved in implementing the provisions of the agreements as sound investments to strengthen the competitiveness of Norfolk Southern's rail carriers."
 In light of the up-front costs of the new labor agreements, Norfolk Southern had announced in November that it was considering suspension of its current share purchase program. Today it reported that the program would be continued, but at a slower pace. The original schedule, calling for completion of the current 45 million share program by the end of 1992, will be stretched out, with actual purchases depending on market conditions, the level of the economy, the price of the stock, cash needed to reduce excess employees, and the need for funds for alternative investments. To date, 28.5 million shares have been purchased under this program.
 "The partial write-down of Norfolk Southern's investment in North American will let our financial statements better reflect North American's actual value in the wake of deregulation," McKinnon explained. "But this accounting adjustment does not reflect a lack of commitment to the business on our part. Without North American, our innovative intermodal operations like Triple Crown probably would not have enjoyed the success they have. Our board has approved a $92 million capital expenditure budget for North American for 1992."
 "Looking at our current operations, most commodity categories showed declines in 1991, with the steepest revenue declines in automotive, down 11 percent, and metals, down 10 percent, reflecting falling automotive sales," McKinnon said. "Coal revenues were down 6 percent, a result of weak industrial demand for electricity and a long stretch of mild weather that resulted in large coal stockpiles at domestic electric utility plants. Also, export coal was down in 1991. However, intermodal revenues increased 9 percent as our double-stack container and Triple Crown Services businesses expanded."
 Total transportation operating revenues for 1991 were $4.45 billion, 4 percent lower than the $4.62 billion in 1990. Railway operating revenues were 3 percent lower and motor carrier revenues 4 percent lower than 1990.
 For the fourth quarter, transportation operating revenues were $1.10 billion, 2 percent lower than the $1.12 billion for the fourth quarter of 1990. Railway operating revenues were 2 percent lower and motor carrier revenues 1 percent lower than the fourth quarter of 1990.
 Total transportation operating expenses for 1991, not including the special charge, were $3.66 billion, down 4 percent from 1990, with railway expenses down 4 percent and motor carrier expenses down 5 percent.
 For the fourth quarter, total transportation operating expenses, not including the special charge, were $912.0 million, down 5 percent from the fourth quarter of 1990. Railway expenses decreased 6 percent, while motor carrier expenses decreased 2 percent.
 The railway operating ratio -- the percentage of revenues that goes into operating the railroad -- again, excluding the special charge, was 78.3 for the year, compared with 78.4 in 1990, and 78.5 for the fourth quarter, compared with 81.7 in 1990.
 -0- 1/29/92
 /CONTACT: Bob Fort, Assistant Vice President, 804-629-2714, or Don Piedmont, Director, 703-981-5407, both of the Public Relations Department, Norfolk Southern Corporation/
 (NSC) CO: Norfolk Southern Corporation ST: Virginia IN: TRN SU: ERN


CM-JM -- CH001 -- 4592 01/29/92 09:21 EST
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Date:Jan 29, 1992
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