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10/26/2022
Norfolk Southern Railway today announced its third-quarter financial results include new records for operating revenue, operating income, net income and diluted earnings per share.
The Class I reported Q3 net income soared 27% to $958 million, or $4.10 diluted earnings per share, from $753 million, or $3.06 per diluted EPS, in the same period a year ago. Railway operating revenue of $3.3 billion reached an all-time quarterly record and climbed 17%.
The revenue gain was driven by a 20% increase in revenue per unit due to higher fuel surcharges and pricing, NS officials said in a press release. Income from operations totaled a record $1.3 billion, up 12%.
Operating expenses in the quarter surged 21% to $2.1 billion due to higher fuel prices, increased labor costs and other elevated expenses resulting from inflation and slower network velocity, company officials said.
Incremental labor costs of $117 million associated with the tentative major labor agreements were recorded in Q3, including $88 million in expenses pertaining to prior periods.
NS posted an operating ratio of 62%, up 1.8 points year over year.
"[Our] team achieved record financial results and improved service levels for our customers through our robust hiring initiatives, and the launch and execution of our new operating plan, TOP|SPG," said President and CEO Alan Shaw.