NORFOLK SOUTHERN CORP Annual Report, Year Ended Dec 31, 2019

Norfolk Southern Corporation (NSC) reported total railway operating revenues of $11.3 billion for the year ended December 31, 2019. Despite a slight decrease in revenue compared to the prior year, the company demonstrated improved operational efficiency, with a notable reduction in its railway operating ratio to 64.7% from 65.4% in 2018. This efficiency gain, coupled with strategic initiatives, allowed for a slight increase in income from railway operations and a more significant increase in net income and diluted earnings per share. Merchandise and intermodal segments formed the bulk of revenues, accounting for 60% and 25% respectively, while coal contributed 15%. Capital expenditures for property additions remained robust, indicating continued investment in infrastructure. The company operates a vast network of approximately 19,500 route miles across 22 states, primarily serving the Eastern and Midwestern United States. NSC faces ongoing competition from other transportation modes, with CSX Corporation being its primary rail competitor. The report highlights the company's commitment to safety, security, and environmental compliance. While the company experienced a decrease in coal tonnage and intermodal volumes in 2019, the focus on pricing strategies and cost management helped mitigate the impact on overall financial performance. Looking ahead, NSC anticipates flat overall revenues for 2020, with expected growth in merchandise and intermodal offset by a decline in coal.