Norfolk Southern, CN report Q4 financial results

Norfolk Southern Corp. today reported fourth-quarter 2021 net income increased 13% to $760 million, or $3.12 diluted earnings per share (EPS), from $671 million, or $2.64 diluted EPS, in Q4 2020.

The Class I posted a fourth-quarter record operating ratio of 60.4% compared with 61.8% in Q4 2020.

NS reported quarterly railway operating revenue of $2.85 billion, up 11% from the previous year, driven by a 15% increase in revenue per unit. Railway operating expenses were $1.7 billion, up 8%, due to higher fuel and purchased services expenses.

Income from railway operations totaled a fourth-quarter record of $1.1 billion, an increase of 15%, or $145 million, year over year.

Fourth-quarter 2021 marked the "successful completion" of the Class I's three-year strategic plan launched in 2019, said NS Chairman and CEO James Squires in a press release.

"We achieved significant additional improvement in productivity while overcoming the headwinds associated with the pandemic and global supply chain disruptions," Squires said. "Our team continues to deliver long-term value to our shareholders and customers, and we are in an excellent position to build on these results moving forward."

Meanwhile, CN yesterday reported "solid operating and financial performance across the board" for Q4 2021, with adjusted diluted EPS growing 20% to CA$1.71. The company's adjusted operating ratio improved to a fourth-quarter record of 57.9%.

For the same period, CN reported diluted EPS growth of 18% to CA$1.69, while the operating ratio improved to 58.3%.

Year over year, CN logged Q4 revenue of CA$3.75 billion, up 3%, and record Q4 operating income of CA$1.57 billion, up 11%. The company reported record Q4 adjusted operating income of CA$1.58 million, up 12%.

CN's operating performance improved across most measures in the fourth quarter.

"The last months of 2021 allowed us to tangibly demonstrate our resilience, our ability to make significant progress against the goals of our strategic plan, and what it means to build the premier railway of the 21st century," said CN President and CEO JJ Ruest in a press release. "Our previous strategic investments in safety, technology, and capacity enabled us to continue delivering high-quality service to customers while generating profitable growth and enhanced value to shareholders."