Norfolk Southern Reports Q2 Results, Volume Down

source: Norfolk Southern Corp.

On Wednesday, Norfolk Southern Corp. reportedsecond-quarter financial results.

Second-quarter net income was $392 million, diluted earnings per share were $1.53 and the operating ratio was 70.7%.

“In a period when working safely and delivering for our customers was abruptly redefined, our employees responded by protecting each other and innovating to serve rapidly evolving freight demand," says James A. Squires, Norfolk Southern chairman, president and CEO. "Underscoring our commitment to shareholder value, we forged ahead with our ongoing transformation by further reducing our hump yard footprint, achieving fuel efficiency gains, and increasing train size. These are astounding achievements while managing the unprecedented economic disruption and public health crisis. We are mobilized and driven to meet the challenges and opportunities that lie ahead, and we will continue to create collaborative change and relentlessly pursue increased productivity as a leading supply chain partner throughout the economic recovery and beyond."

Second-quarter summary

• Railway operating revenues of $2.1 billion decreased 29% compared with second quarter 2019, driven by a 26% decline in total volume.
• Railway operating expenses of $1.5 billion decreased 21% compared with second quarter 2019, driven by lower fuel, compensation and benefits, and purchased services expenses.
• Income from railway operations was $610 million and the operating ratio was 70.7%.