Reuters reported that US railroad Norfolk Southern Corp reported higher quarterly results that beat analyst forecasts, sending its shares up nearly 5% and forecast continued volume growth above the broader US economy.

Higher pricing, fuel surcharges and a 3% volume increase drove profit higher in the third quarter.

The company said it benefited from tight truck capacity, as well as growth in the automobile, export coal and domestic intermodal businesses.

Intermodal refers to the shipment of goods in containers that can be moved from one form of transportation to another, such as from train to ship or train to truck.

Mr Wick Moorman Chief Executive Officer said "As we look ahead over the short term we continue to see signs pointing to overall, modest economic growth. And we anticipate that our overall volumes will continue to grow at a rate somewhat greater than that of the economy."

Norfolk Southern reported double-digit revenue increases in its coal, general merchandise and intermodal businesses in the quarter. The company moved 23% more coal for export in the third quarter than a year ago and forecast ongoing strength into 2012.

About 55% of its coal exports went to Western Europe about 20% to Asia and the rest to South America.

Mr Don Seale chief marketing officer said "We achieved record RPU levels in agriculture, metals and construction, paper, automotive and coal, surpassing the records previously set in each of these groups during the second quarter."

The Norfolk Virginia-based company said third-quarter net income rose 24% to USD 554 million or USD 1.59 per share from USD 445 million, or USD 1.19 per share a year ago.

Railway operating revenue rose 18% to USD 2.89 billion for the third-largest publicly held US railroad company compared with the average forecast of USD 2.87 billion.

(Sourced from Reuters)