Norfolk Southern reported its profit in the second quarter of 2013 fell 11 percent year-over-year to $465 million, compared with $524 million.
Quarterly railway revenue was $2.8 billion, down 3 percent from the second quarter of 2012, although shipment volume rose 2 percent. Revenue from general merchandise operations was $1.6 billion, increasing 2 percent, driven by increased chemical and automotive shipments. Furthermore, coal revenue was $626 billion, plummeting 17 percent year-over-year, while intermodal revenue rose 4 percent to $588 million, as volume increased 5 percent from domestic and international gains.
“In the second quarter, Norfolk Southern delivered solid results, supported by growth in our chemicals, intermodal and automotive businesses, despite continuing weakness in the coal markets,” said Wick Moorman, CEO of the Class I railroad, in a written statement. “We continue to focus on service efficiency and velocity, which is enabling us to control operating expenses and deliver superior performance to our customers.”
The railroad’s volume also dropped in agricultural, metals and construction and flat paper and forest products, according to Stifel Transportation & Logistics Research Group.