Norfolk Southern reports Q4 and full-year 2022 results

Rhea-AI Summary

Norfolk Southern Corporation (NYSE: NSC) reported record railway operating revenue and income from railway operations for Q4 and full-year 2022. Q4 revenue reached $3.2 billion, up 13%, while operating income rose to $1.2 billion, a 5% increase. For the entire year, total revenues hit $12.7 billion, climbing 14%, and operating income reached $4.8 billion, up 8%. Diluted earnings per share also saw a 15% increase to $13.88. Despite revenue growth, operating expenses increased due to higher fuel costs and compensation.

Positive

• Fourth quarter railway operating revenue of $3.2 billion, up 13%
• Annual railway operating revenues of $12.7 billion, a record increase of 14%
• Fourth quarter income from railway operations at $1.2 billion, an increase of 5%
• Diluted earnings per share for Q4 reached $3.42, up 10%
• Diluted earnings per share for 2022 at $13.88, up 15%

Negative

• Fourth quarter operating expenses increased by 19% to $2.1 billion due to higher fuel prices, claims costs, and compensation
• Annual operating expenses rose by 19% to $7.9 billion, driven by inflation and network congestion

Company reports record railway operating revenue, income from railway operations

ATLANTA, Jan. 25, 2023 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today announced fourth quarter and full-year 2022 financial results. The company marked fourth quarter and annual records for railway operating revenue and income from railway operations.  

Fourth quarter railway operating revenue was $3.2 billion, up 13%, and income from railway operations was $1.2 billion, up 5%. 

"In the fourth quarter and throughout 2022, Norfolk Southern made significant progress in our financial performance, service improvement, and engagement with our craft team members," said Norfolk Southern President and Chief Executive Officer Alan H. Shaw. "Our team delivered double-digit percentage growth in revenue as well as earnings per share and achieved record revenue and operating income for the year. We also outlined a bold new strategic plan to create long-term shareholder value and a pathway for future growth for Norfolk Southern." 

Fourth Quarter Summary 

• Railway operating revenues of $3.2 billion were a fourth quarter record, up 13%, or $385 million, compared with fourth quarter 2021, driven by a 15% increase in revenue per unit. 
• Railway operating expenses were $2.1 billion, an increase of 19% compared with the same period last year due to higher fuel prices, increased claims costs, and higher compensation and benefits. 
• Income from railway operations was a fourth quarter record of $1.2 billion, up 5%, or $52 million, year-over-year. 
• Diluted earnings per share were $3.42, up 10%, or $0.30 compared with fourth quarter 2021. 

2022 Summary 

• Railway operating revenues were a record $12.7 billion in 2022, up 14%, or $1.6 billion, compared with 2021, driven by an 18% increase revenue per unit. 
• Railway operating expenses were $7.9 billion, an increase of 19% compared with the same period last year, driven by higher fuel prices, inflation, network congestion, and higher compensation and benefits. 
• Income from railway operations was $4.8 billion, up 8%, or $362 million, year-over-year, an annual record. 
• Diluted earnings per share were $13.88, up 15%, or $1.77 compared with 2021. 

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a customer-centric and operations-driven freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods, and is the largest rail shipper of auto products and metals in North America. Norfolk Southern also has the most extensive intermodal network in the eastern U.S., serving a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as the Gulf of Mexico and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

 

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SOURCE Norfolk Southern Corporation

FAQ

What were Norfolk Southern's Q4 2022 earnings results?

Norfolk Southern reported Q4 2022 railway operating revenue of $3.2 billion, a 13% increase, and income from railway operations of $1.2 billion, up 5%.

How much did Norfolk Southern earn per share in 2022?

The diluted earnings per share for Norfolk Southern in 2022 were $13.88, reflecting a 15% increase from the previous year.

What were the main factors affecting Norfolk Southern's operating expenses in 2022?

Norfolk Southern's operating expenses increased due to higher fuel prices, inflation, network congestion, and increased compensation costs.

What was the total railway operating revenue for Norfolk Southern in 2022?

The total railway operating revenue for Norfolk Southern in 2022 was a record $12.7 billion, a 14% increase compared to 2021.

How did Norfolk Southern's Q4 2022 revenue compare to Q4 2021?

Q4 2022 revenue of $3.2 billion was up 13%, or $385 million, compared to Q4 2021.