Norfolk Southern Corp the fourth biggest US railroad, posted a quarterly profit that beat analysts estimates as the economic recovery boosts shipping volumes.

The Norfolk Virginia based company said that profit excluding some items was USD 1 a share, topping the 90 cent average estimate from 27 analysts surveyed by Bloomberg. Net income climbed 26% to USD 325 million or 90 cents a share from USD 257 million or 68 cents, a year earlier.

Total rail volumes excluding grain and coal shipments rose 7.9% to 4.6 million carloads in the quarter ended March 31, according to the Association of American Railroads in Washington. Demand for goods shipped by rail is climbing as the economy rebounds, boosting revenue at Norfolk Southern. Sales rose 17% to USD 2.62 billion from a year earlier.

Mr Charles Moorman CEO in March at the JPMorgan Aviation, Transportation and Defense Conference said that "Our volumes are up and we can expect them to continue to be up throughout the year."

(Sourced from Bloomberg)