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Norfolk Southern reports second-quarter 2021 results

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Norfolk Southern Corporation (NYSE: NSC) announced impressive second-quarter 2021 results with a net income of $819 million, and diluted earnings per share of $3.28. The company achieved record figures in operating ratio at 58.3% and income from railway operations reaching $1.2 billion, up 91% year-over-year. Railway operating revenues increased by 34% to $2.8 billion, driven by a 25% rise in volume. Operating expenses rose by 11% to $1.6 billion. CEO James A. Squires emphasized commitment to long-term value for customers and shareholders.

Positive
  • Net income reached $819 million, a significant gain.
  • Diluted earnings per share increased to $3.28.
  • Operating ratio improved significantly to an all-time record of 58.3%.
  • Income from railway operations set a record at $1.2 billion, up 91% year-over-year.
  • Railway operating revenues rose to $2.8 billion, a 34% increase.
Negative
  • Operating expenses increased by 11% to $1.6 billion, which could pressure profit margins.

NORFOLK, Va., July 28, 2021 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today reported second-quarter 2021 financial results, which included second-quarter records for net income and diluted earnings per share, and all-time quarterly records for operating ratio and income from railway operations.    

Second-quarter net income was $819 million, diluted earnings per share were $3.28, and the operating ratio improved to 58.3%.

"Our team met the challenge for the second quarter head-on, delivering another solid performance of sequential operating ratio improvement, driving meaningful productivity into our business as revenue and volume rebounded from last year, up 34% and 25%, respectively," said James A. Squires, Norfolk Southern chairman, president and CEO. "Leveraging the strong and diverse book of business we have developed, we will build upon our success in the creation of long-term, sustainable value for our customers and shareholders." 

Second-quarter summary

  • Railway operating revenues of $2.8 billion increased 34%, or $714 million, compared with second-quarter 2020, driven by a 25% increase in volume and a 7% increase in revenue per unit.

  • Railway operating expenses were $1.6 billion, an increase of 11%, or $157 million, compared with the same period last year.

  • Income from railway operations was an all-time quarterly record of $1.2 billion, an increase of 91%, or $557 million, year-over-year.  

  • Railway operating ratio was 58.3%, an all-time record. 

About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies, moving the goods and materials that drive the U.S. economy. Norfolk Southern connects customers to markets and communities to economic opportunity, with safe, reliable, and cost-effective shipping solutions. The company's service area includes 22 states and the District of Columbia, every major container port in the eastern United States, and a majority of the U.S. population and manufacturing base.

Forward-looking statements
This news release contains forward-looking statements that may be identified by the use of words like "believe," "expect," "anticipate," "estimate," "plan," "consider," "project," and similar references to the future. Forward-looking statements reflect our good-faith evaluation of information currently available. These forward-looking statements are subject to a number of risks and uncertainties, and our actual results may differ materially from those projected. Please refer to our annual and quarterly reports filed with the SEC for a full discussion of those risks and uncertainties we view as most important. Forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at or by which any such performance or results will be achieved. As a result, actual outcomes and results may differ materially from those expressed in forward-looking statements. We undertake no obligation to update or revise forward-looking statements.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/norfolk-southern-reports-second-quarter-2021-results-301342915.html

SOURCE Norfolk Southern Corporation

FAQ

What were Norfolk Southern's second-quarter 2021 earnings?

Norfolk Southern reported a net income of $819 million and diluted earnings per share of $3.28.

How much did Norfolk Southern's railway operating revenues increase in Q2 2021?

Railway operating revenues increased by 34%, reaching $2.8 billion.

What is Norfolk Southern's operating ratio for the second quarter of 2021?

The operating ratio improved to an all-time record of 58.3%.

What was the year-over-year increase in Norfolk Southern's income from railway operations?

Income from railway operations increased by 91% year-over-year to $1.2 billion.

Did Norfolk Southern experience any increase in operating expenses in Q2 2021?

Yes, operating expenses rose by 11% to $1.6 billion.

Norfolk Southern Corp.

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