Norfolk Southern Corporation has reported record fourth quarter net income of USD 480 million, up by 19% YoY as compared with USD 402 million for the same quarter of 2010. Diluted earnings per share were a record USD 1.42, up by 30% YoY as compared with the USD 1.09 per diluted share earned in the same period a year earlier.
For 2011, net income increased to an all time record USD 1.9 billion, up by 28% YoY as compared with USD 1.5 billion for 2010. Diluted earnings per share for the year increased 36% or USD 1.45 to a record USD 5.45 as compared with 2010.
Mr Wick Moorman CEO of Norfolk Southern said that "Norfolk Southern achieved all time records for revenues, operating income, net income, and earnings per share during 2011 and set fourth quarter records for revenues, net income, and earnings per share. In 2012 we will remain committed to enhancing our service product, maintaining the safety and quality of our rail network, improving operational efficiency, and supporting growth."
He added that "Our strong capital program of USD 2.4 billion will include substantial investments along our Crescent Corridor, a public private partnership to create a high capacity, truck competitive inter modal freight rail route between the Gulf Coast and Northeast. As part of this program of projects, we plan to open inter modal terminals in Alabama, Pennsylvania, and Tennessee later in the year. Facilities such as these relieve congested freight lines and highways and are proven centers for creating jobs and economic development."
Railway operating revenues increased to USD 2.8 billion, a fourth quarter record, up by 17% YoY. For 2011, railway operating revenues set an all time record USD 11.2 billion, up by 17% YoY. The improvements were the result of increases in revenue per unit of 11% for the quarter and 12% for the year and higher volumes that were up 6% for the quarter and 5% for the year.
General merchandise revenues rose to USD 1.4 billion, up by 13% YoY as compared with fourth quarter 2010. For 2011, general merchandise revenues increased to USD 5.6 billion, up by 12% YoY as compared with 2010. Traffic volume increased 1% in the quarter and was even for the year compared with the same periods of 2010.
Coal revenues in the fourth quarter were USD 850 million, up by 24% YoY as compared with the same period last year. For 2011, coal revenues were USD 3.5 billion, up by 27% as compared with 2010. Traffic volume increased 3% in the quarter and 4% for the year compared with the same periods of 2010.
Intermodal revenues were USD 554 million, up by 18% YoY as compared with fourth quarter 2010. For the year, inter modal revenues were USD 2.1 billion, up by 19% YoY. Traffic volume increased by 11% in the quarter and 10% for 2011 compared with the same periods of 2010.
Railway operating expenses were USD 2 billion for the fourth quarter, up by 14% YoY. For 2011, railway operating expenses were USD 8 billion, up by 16% YoY as compared with 2010. The increases were primarily driven by fuel expenses, which rose by USD 95 million in the fourth quarter and USD 510 million for the year, and higher costs associated with increased traffic volumes.
Income from railway operations increased by 25% for the quarter to USD 800 million and improved 20% to a record USD 3.2 billion for the year, compared with the same periods of 2010. The fourth quarter railway operating ratio improved by 2% to 71.4% as compared with the same period last year. For 2011, the railway operating ratio improved by 1% to 71.2% as compared with 2010.
