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NORFOLK SOUTHERN REPORTS SECOND-QUARTER EARNINGS

 NEW YORK, NY, July 28 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today reported second-quarter earnings per share of $1.11, up 8 percent from the $1.03 reported in last year's second quarter and its highest-ever quarterly earnings per share. Second-quarter net income was $155.2 million, up 7 percent from the $145 million earned in the 1992 second quarter. The percentage increase in earnings per share was greater than that in net income as a result of the continuing stock purchase program.
 For the first half of 1993, earnings per share of $2.10, before the cumulative effect of accounting changes, were up 5 percent from the $2.00 per share in last year's first half. Net income, before the cumulative effect of accounting changes, was $294.1 million, up 4 percent from $283.7 million in last year's first half.
 Net income for the first half of 1993 was $517.4 million, or $3.70 per share, which reflects the $223 million, or $1.60 per share, increase in net income resulting from implementation in this year's first quarter of certain standards promulgated by the Financial Accounting Standards Board and applicable to most large American companies.
 "We are pleased to report strong second quarter earnings, led by income from railway operations that improved 11.5 percent, from $225.3 million in 1992 to $251.3 million in 1993," said David R. Goode, chairman, president and chief executive officer.
 "We attribute this to strong growth in merchandise revenues, which offset the decline in coal revenues, and to tight control of costs."
 In the second quarter, Norfolk Southern recorded a $50.3 million pre-tax ($32.8 million after-tax) charge for estimated costs of restructuring associated with a previously announced sale of two portions of North American Van Lines, Inc. In addition, second quarter results reflect a tax benefit of $31.5 million, associated with the restructuring. As a result, the net effect of the North American restructuring on second quarter earnings is negligible.
 Total transportation operating revenues for the second quarter were $1.17 billion, 2 percent higher than the $1.15 billion a year ago. Rail operating revenues of $963.2 million were 3 percent above last year's $939.5 million, and motor carrier revenues of $207.2 million were less than 1 percent below the $207.4 million of last year's second quarter.
 For the first half of 1993, total transportation operating revenues were $2.29 billion, up 2 percent from the $2.25 billion in the previous year. First-half rail operating revenues were $1.89 billion, up 2 percent from last year's $1.86 billion, and first-half motor carrier revenues of $393.7 million increased 2 percent above the $386.9 million in the comparable 1992 period.
 For the first half of 1993, all merchandise groups showed revenue improvements, ranging from 1 percent (intermodal and paper/forest products) to 14 percent (automotive business).
 Total transportation operating expenses for the second quarter were $979.6 million, up 7 percent from last year's $916.9 million, mostly due to the North American restructuring charge.
 Railway operating expenses for the second quarter decreased slightly, and motor carrier expenses, excluding the restructuring charge, increased 7 percent.
 For the first half of 1993, total transportation operating expenses, including the North American restructuring charge, increased 5 percent. Rail expenses were up 2 percent, and motor carrier expenses, excluding the restructuring charge, were up 4 percent.
 The rail operating ratio, the percentage of revenues that goes into operating the railroads, was 73.9 for the second quarter, compared with 76.0 for the second quarter of 1992, and 75.8 for the first half, compared with 75.4 in 1992.
 -0- 7/28/93
 /CONTACT: Robert C. Fort or Robin C. Chapman, Norfolk, 804-629-2714, Robert M. Auman, Roanoke, 703-981-5426, Richard W. Harris, Atlanta, 404-529-2193, all of Norfolk Southern Corporation/
 (NSC)


CO: Norfolk Southern Corporation ST: Virginia IN: TRN SU: ERN

SB -- CH002 -- 6638 07/28/93 09:13 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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