8-KEarnings & ResultsRegulation FD

NORFOLK SOUTHERN CORP 8-K Report, Financial Results (Jan 26, 2005)

Filed January 26, 2005For Securities:NSC

Summary

Norfolk Southern Corporation (NSC) filed an 8-K on January 26, 2005, to announce its fourth quarter and full-year 2004 financial results. The report highlights the use of non-GAAP financial measures to provide a clearer comparison of operational performance by excluding certain one-time charges and gains. Specifically, the company adjusted 2003 fourth-quarter net income by removing costs associated with a voluntary separation program and an asset impairment charge. Furthermore, for year-end comparisons, 2004 net income excludes a noncash gain from the Conrail corporate reorganization that occurred in the third quarter. Management believes these adjusted figures offer a more indicative view of ongoing operational results and are intended for use in future comparisons and at analyst meetings. Investors should pay close attention to these adjustments when evaluating the company's performance trends and comparing them to industry peers.

Key Highlights

  • 1NSC announced its Q4 and full-year 2004 financial results on January 26, 2005.
  • 2The company utilized non-GAAP financial measures in its earnings release, as permitted by SEC Regulation G.
  • 3Adjustments were made to exclude costs from a voluntary separation program and an asset impairment charge in Q4 2003.
  • 4A noncash gain from the Conrail corporate reorganization in Q3 2004 was excluded from full-year 2004 net income for comparative purposes.
  • 5Management believes these non-GAAP measures provide a better indication of operating results for comparison to future periods and other companies.
  • 6These adjusted financial metrics will be discussed at NSC's analyst meeting scheduled for January 26, 2005.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce Norfolk Southern Corporation's fourth quarter and full-year 2004 financial results and to provide investors with a press release detailing these results, including the use of non-GAAP financial measures for comparative analysis.

The company is excluding costs from a voluntary separation program and an asset impairment charge from the 2003 fourth quarter. Additionally, a noncash gain from the Conrail corporate reorganization in the third quarter of 2004 is being excluded from the full-year 2004 net income. These exclusions are intended to present a clearer view of ongoing operational performance, removing the impact of specific, often one-time, events.

No, the filing explicitly states that these non-GAAP financial measures should be considered in addition to, not as a substitute for, the measures reported in financial statements prepared in accordance with GAAP. The GAAP-compliant financial statements remain the official record of the company's financial performance.

Management intends to use these non-GAAP financial measures for comparison purposes at their analyst meeting scheduled for January 26, 2005, and in future comparisons to relevant periods. They believe these adjusted figures are more indicative of operating results for comparison to future periods and other companies.