Summary
Norfolk Southern Corporation (NSC) reported $10.5 billion in railway operating revenues for the year ended December 30, 2015. While overall revenues saw a decrease compared to the previous year, the company highlighted operational improvements such as a 21% reduction in terminal dwell time and a 17% improvement in train speed. The company is strategically focused on enhancing network velocity and service efficiency while managing costs. Despite headwinds from declining energy prices impacting coal and energy-related product volumes, NSC anticipates modest growth in intermodal and automotive markets for 2016. The company's diversified revenue streams include coal (17% of total revenue), general merchandise (60%), and intermodal (23%). Coal revenues experienced a significant decline due to lower demand and reduced fuel surcharge revenues. General merchandise revenues also saw a decrease, primarily driven by lower fuel surcharges, although volumes remained relatively flat. The intermodal segment showed mixed results, with domestic volume declining and international volume growing. NSC is committed to significant capital investments, budgeting $2.1 billion for property additions in 2016, including substantial investments in positive train control (PTC) implementation and infrastructure improvements. The company also repurchased $1.1 billion of its common stock in 2015, demonstrating a commitment to returning value to shareholders.
Financial Highlights
49 data points| Revenue | $10.51B |
| Operating Expenses | $7.63B |
| Operating Income | $2.88B |
| Interest Expense | $545.00M |
| Net Income | $1.56B |
| EPS (Basic) | $5.13 |
| EPS (Diluted) | $5.10 |
| Shares Outstanding (Basic) | 301.90M |
| Shares Outstanding (Diluted) | 304.40M |
Key Highlights
- 1Total railway operating revenues were $10.5 billion for 2015, a decrease from $11.6 billion in 2014, primarily due to lower average revenue per unit and depressed coal volumes.
- 2Net income for 2015 was $1.6 billion, or $5.10 per diluted share, down 22% from $2.0 billion, or $6.39 per diluted share, in 2014.
- 3The company reported significant operational improvements, including a 21% decrease in terminal dwell and a 17% improvement in train speed from the beginning of 2015.
- 4Coal revenues decreased by 23% in 2015, driven by a 16% decline in carload volume and reduced fuel surcharge revenues.
- 5The company plans capital expenditures of $2.1 billion for 2016, including $250 million for Positive Train Control (PTC) implementation.
- 6Norfolk Southern repurchased approximately 11.3 million shares of common stock in 2015 for $1.1 billion.
- 7The company's railroad network spans approximately 20,000 miles across 22 states and the District of Columbia.