Summary
Norfolk Southern Corporation (NSC) reported a solid third quarter and first nine months of 2013, demonstrating revenue growth driven by energy-related shipments, industrial products, intermodal, and automotive sectors. Net income for the third quarter increased by 20% year-over-year to $482 million, with diluted earnings per share rising to $1.53 from $1.24. For the first nine months, net income grew 5% to $1.4 billion, supported by a $60 million gain from asset sales. Despite a decline in coal revenues due to lower volumes and pricing, overall railway operating revenues saw a 5% increase in Q3. Operating expenses saw a modest increase, leading to an improved operating ratio of 69.9% in Q3 2013 compared to 72.9% in Q3 2012, indicating enhanced operational efficiency. The company maintained a strong liquidity position with $1.0 billion in cash, cash equivalents, and short-term investments as of September 30, 2013. Investment activities included significant property additions, while financing activities saw substantial share repurchases totaling $564 million in the first nine months, alongside dividend payments. The company also issued $500 million in senior notes during the quarter to manage its debt structure. Management expects continued revenue growth for the remainder of the year.
Financial Highlights
46 data points| Revenue | $2.82B |
| Operating Expenses | $1.98B |
| Operating Income | $849.00M |
| Interest Expense | $131.00M |
| Net Income | $482.00M |
| EPS (Basic) | $1.55 |
| EPS (Diluted) | $1.53 |
Key Highlights
- 1Net income for Q3 2013 increased by 20% to $482 million, with diluted EPS rising to $1.53.
- 2First nine months net income reached $1.4 billion, a 5% increase year-over-year, aided by a $60 million asset sale gain.
- 3Railway operating revenues grew 5% in Q3 2013 to $2.8 billion, driven by energy, industrial, intermodal, and automotive segments, offsetting a decline in coal.
- 4Operating ratio improved to 69.9% in Q3 2013 from 72.9% in Q3 2012, indicating better operational efficiency.
- 5Company maintained strong liquidity with $1.0 billion in cash, cash equivalents, and short-term investments as of September 30, 2013.
- 6Share repurchases continued, with $564 million spent in the first nine months of 2013.
- 7Issued $500 million in 4.80% senior notes due 2043 during the third quarter.