Norfolk Southern today reported first quarter profit of $450 million, up 10 percent from $410 million in the first quarter of 2012.
Net income in the first quarter included a gain from the sale of land to the Michigan Department of Transportation, which increased profit by $60 million.
Quarterly railway operating revenue was $2.7 billion, down 2 percent compared to the first quarter of 2012 on a 3 percent year-over-year decrease in shipment volume. General merchandise revenue was $1.5 billion, up 2 percent compared to the first quarter of 2012, driven by increased shipments of chemicals and automobiles, the Class I railroad said in a written statement.
Coal revenue in the first quarter was $635 million, down 17 percent year-over-year, fueled by lower average revenue per unit and a 4 percent decline in volume, the result of mild winter weather and low natural gas prices, NS said. Meanwhile, intermodal revenue increased 9 percent to $573 million, as volume increased by 9 percent year-over-year.
Wick Moorman, NS CEO, said he was “pleased” with the railroad’s first quarter results and will continue to work to ensure that the rail franchise continues to thrive.