Norfolk Southern registers 32% growth in Q3 net income
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Norfolk Southern registers 32% growth in Q3 net income

27 Oct 2021 (Last Updated October 27th, 2021 15:53)

Railway operating revenues increased 14% to $2.85bn, while expenses were 3% higher.

Norfolk Southern registers 32% growth in Q3 net income
In Q3 2021, the company’s diluted earnings per share were $3.06. Credit: Norfolk Southern Corp.

US-based Norfolk Southern Corporation (NSC) has recorded a net income of $753m, or $3.06 a share in Q3 2021, a 32% increase from $569m ($2.22 a share) compared to the same quarter a year earlier.

Railway operating revenues increased 14% to $2.85bn over the same period.

In Q3 2021, the company’s revenue from railway operations was $1.1bn, up 35% from the prior year.

The operating ratio stood at 60.2%, an improvement of 630 basis points, while railway operating expenses were $1.7bn, marking a 3% or $50m increase.

The financial results of 2020 included a $99m impairment charge in connection with an equity method investment.

Without the impairment charge, operating expenses increased 10%, or $149m, as against adjusted operating expenses in Q3 2020.

Without considering the impairment charge, income from railway operations increased by 21%, or $197m, on a year-on-year adjusted basis.

Excluding the effect of the impairment charge, the operating ratio increased by 230 basis points over the adjusted results for Q3 2020.

NSC chairman, president and CEO James A Squires said: “Our team delivered a strong financial performance in the quarter, producing a number of third-quarter records.

“The actions taken by our employees show our commitment to find sustainable solutions for our customers and shareholders in the face of significant supply chain disruptions.”

Norfolk, Virginia-based NSC serves 22 states and the District of Columbia, as well as every major container port in the eastern US.