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Norfolk Southern Corp. is off to a good start in 2004. The Class I posted record first-quarter revenue and operating income, and lowered its quarterly operating ratio below 80.

During the first quarter, NS recorded $1.7 billion in revenue, $346 million in operating income and $158 million in net income compared with $1.6 billion, $231 million and $85 million, respectively, in first-quarter 2003. The railroad's quarterly operating ratio of 79.6 improved 5.6 points and carloads increased 7 percent compared with the same 2003 period.

"We recorded the highest railway operating revenues in our history [and] the best first-quarter operating ratio since the Conrail integration in what is
traditionally the most challenging quarter," said NS Chairman, President and Chief Executive Officer David Goode in a prepared statement. "Our network velocity reached an all-time high as our average train speed exceeded our goal [and] our network fluidity continued to improve as we handled 109,000 more carloads in the quarter but our cars on line remained constant."

Quarterly general-merchandise revenue reached a record $967 million, a 5 percent increase compared with first-quarter 2003. Chemical revenue set a record, too, increasing 6 percent. Coal revenue rose 12 percent and intermodal revenue, 13 percent, compared with last year.

However, quarterly operating expenses increased 1 percent or $17 million to $1.34 billion.