Norfolk Southern Reports First-Quarter 2001 Results

Apr 25, 2001, 01:00 ET from Norfolk Southern Corporation

    NEW YORK, April 25 /PRNewswire/ -- Norfolk Southern Corporation
 (NYSE:   NSC) today announced first-quarter income from continuing operations of
 $61 million, or $0.16 per diluted share, compared with $14 million, or $0.04
 per diluted share, in the first quarter of 2000, which excluded the cost of a
 work-force reduction program.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991119/NSCGOODE
              http://www.newscom.com/cgi-bin/prnh/19991118/NSCLOGO )
     "We're encouraged with our progress in the first quarter in light of the
 difficult and uncertain economic climate," said David R. Goode, Norfolk
 Southern chairman, president and chief executive officer.  "We are increasing
 capacity and introducing new services while at the same time continuing to
 drive out expenses."
     Reported net income for the first quarter was $74 million, or $0.19 per
 diluted share, reflecting an after-tax gain of $13 million, or $0.03 per
 share, related to the 1998 sale of Norfolk Southern's former trucking
 subsidiary, North American Van Lines, Inc. For the comparable period in 2000,
 reported results were a net loss of $48 million, or $0.12 per diluted share,
 and included an after-tax work-force reduction charge of $62 million, or
 $0.16 per diluted share.
     Railway operating revenues in the first quarter were $1.54 billion,
 2 percent higher compared with operating revenues of $1.51 billion in the
 first quarter of 2000.  Coal revenues increased $46 million, or 13 percent, to
 $393 million, driven by increased electricity generation and the replenishing
 of stockpiles by utilities. Strong utility demand reduced the supply of export
 coal, which resulted in a decrease in export coal revenues. Intermodal
 revenues increased $30 million, or 12 percent over the first quarter 2000, to
 $276 million, strengthened by increased domestic container business. General
 merchandise revenues declined $44 million, or 5 percent, to $871 million,
 primarily due to cutbacks in automotive production, which also impacted metals
 revenues.
     First-quarter railway operating expenses were $1.34 billion in 2001, down
 3 percent compared with $1.38 billion in 2000, excluding last year's work-
 force reduction charge.  The decline largely was due to reduced compensation
 and benefit costs.   "Our restructuring initiatives are beginning to generate
 momentum," Goode said.  "As we move ahead, we will continue to take the
 necessary steps to deliver the service our customers deserve and the returns
 our investors expect."
     For the quarter, the railway operating ratio improved to 86.7 percent,
 compared with 91.4 percent in 2000, excluding the cost of a work-force
 reduction charge.
 
    Norfolk Southern Corporation and Subsidiaries Financial Highlights First
                                  Quarter 2001
                                  (Unaudited)
                     ($ millions except per share amounts)
                                                                    Percent
                                           First Quarter             Change
                                        2001            2000       Favorable
                                                                 (Unfavorable)
     Railway operating revenues      $ 1,540         $ 1,508            2%
     Railway operating expenses
      (note C)                         1,335           1,379            3%
     Income from railway operations      205             129           59%
     Nonoperating income (expense)      (114)           (112)          (2%)
     Net income (notes B and C)      $    61         $    14          336%
     Earnings per share (notes B and C):
       Net income, basic and diluted $   .16         $   .04          300%
     Railway operating ratio (%)        86.7            91.4            5%
 
     NOTES:
     (A) NS wishes to furnish financial information comparable with that
         reported in other periods and to highlight the information on which
         the accompanying press release draws.  Accordingly, as more
         particularly detailed in any notes hereto, and in the accompanying
         press release, these Financial Highlights may not reflect the effects
         of certain unusual or infrequent transactions, or changes in
         accounting, that significantly affect net income and earnings per
         share as reported in the financial statements.
     (B) DISCONTINUED OPERATIONS -
         First quarter 2001 "Net income" excludes an adjustment to the
         estimated gain recorded in 1998 on the sale of North American Van
         Lines, Inc., NS' motor carrier subsidiary.  The adjustment resulted in
         additional after-tax gain of $13 million, or 3 cents per share, and
         was related to the expiration of certain indemnities contained in the
         sales agreement.  During 1998, NS received $207 million of proceeds
         from the sale and recorded an after-tax gain of $105 million, or 28
         cents per share.
     (C) WORKFORCE REDUCTION CHARGE -
         First quarter 2000 "Railway operating expenses" exclude a $101 million
         work-force reduction charge which reduced net income by $62 million,
         or 16 cents per diluted share.  Reductions in non-union personnel
         were achieved primarily through a voluntary early retirement program
         while union personnel reductions resulted primarily from furloughs.
         The retirements were effective March 1, 2000, and most of the related
         benefits will be paid from the Company's overfunded pension plan.
 
     Financial Highlights are provided solely to complement the content of the
 accompanying press release.
 
                               MAKE YOUR OPINION COUNT -  Click Here
              http://tbutton.prnewswire.com/prn/11690X12968713
 
 

SOURCE Norfolk Southern Corporation
    NEW YORK, April 25 /PRNewswire/ -- Norfolk Southern Corporation
 (NYSE:   NSC) today announced first-quarter income from continuing operations of
 $61 million, or $0.16 per diluted share, compared with $14 million, or $0.04
 per diluted share, in the first quarter of 2000, which excluded the cost of a
 work-force reduction program.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991119/NSCGOODE
              http://www.newscom.com/cgi-bin/prnh/19991118/NSCLOGO )
     "We're encouraged with our progress in the first quarter in light of the
 difficult and uncertain economic climate," said David R. Goode, Norfolk
 Southern chairman, president and chief executive officer.  "We are increasing
 capacity and introducing new services while at the same time continuing to
 drive out expenses."
     Reported net income for the first quarter was $74 million, or $0.19 per
 diluted share, reflecting an after-tax gain of $13 million, or $0.03 per
 share, related to the 1998 sale of Norfolk Southern's former trucking
 subsidiary, North American Van Lines, Inc. For the comparable period in 2000,
 reported results were a net loss of $48 million, or $0.12 per diluted share,
 and included an after-tax work-force reduction charge of $62 million, or
 $0.16 per diluted share.
     Railway operating revenues in the first quarter were $1.54 billion,
 2 percent higher compared with operating revenues of $1.51 billion in the
 first quarter of 2000.  Coal revenues increased $46 million, or 13 percent, to
 $393 million, driven by increased electricity generation and the replenishing
 of stockpiles by utilities. Strong utility demand reduced the supply of export
 coal, which resulted in a decrease in export coal revenues. Intermodal
 revenues increased $30 million, or 12 percent over the first quarter 2000, to
 $276 million, strengthened by increased domestic container business. General
 merchandise revenues declined $44 million, or 5 percent, to $871 million,
 primarily due to cutbacks in automotive production, which also impacted metals
 revenues.
     First-quarter railway operating expenses were $1.34 billion in 2001, down
 3 percent compared with $1.38 billion in 2000, excluding last year's work-
 force reduction charge.  The decline largely was due to reduced compensation
 and benefit costs.   "Our restructuring initiatives are beginning to generate
 momentum," Goode said.  "As we move ahead, we will continue to take the
 necessary steps to deliver the service our customers deserve and the returns
 our investors expect."
     For the quarter, the railway operating ratio improved to 86.7 percent,
 compared with 91.4 percent in 2000, excluding the cost of a work-force
 reduction charge.
 
    Norfolk Southern Corporation and Subsidiaries Financial Highlights First
                                  Quarter 2001
                                  (Unaudited)
                     ($ millions except per share amounts)
                                                                    Percent
                                           First Quarter             Change
                                        2001            2000       Favorable
                                                                 (Unfavorable)
     Railway operating revenues      $ 1,540         $ 1,508            2%
     Railway operating expenses
      (note C)                         1,335           1,379            3%
     Income from railway operations      205             129           59%
     Nonoperating income (expense)      (114)           (112)          (2%)
     Net income (notes B and C)      $    61         $    14          336%
     Earnings per share (notes B and C):
       Net income, basic and diluted $   .16         $   .04          300%
     Railway operating ratio (%)        86.7            91.4            5%
 
     NOTES:
     (A) NS wishes to furnish financial information comparable with that
         reported in other periods and to highlight the information on which
         the accompanying press release draws.  Accordingly, as more
         particularly detailed in any notes hereto, and in the accompanying
         press release, these Financial Highlights may not reflect the effects
         of certain unusual or infrequent transactions, or changes in
         accounting, that significantly affect net income and earnings per
         share as reported in the financial statements.
     (B) DISCONTINUED OPERATIONS -
         First quarter 2001 "Net income" excludes an adjustment to the
         estimated gain recorded in 1998 on the sale of North American Van
         Lines, Inc., NS' motor carrier subsidiary.  The adjustment resulted in
         additional after-tax gain of $13 million, or 3 cents per share, and
         was related to the expiration of certain indemnities contained in the
         sales agreement.  During 1998, NS received $207 million of proceeds
         from the sale and recorded an after-tax gain of $105 million, or 28
         cents per share.
     (C) WORKFORCE REDUCTION CHARGE -
         First quarter 2000 "Railway operating expenses" exclude a $101 million
         work-force reduction charge which reduced net income by $62 million,
         or 16 cents per diluted share.  Reductions in non-union personnel
         were achieved primarily through a voluntary early retirement program
         while union personnel reductions resulted primarily from furloughs.
         The retirements were effective March 1, 2000, and most of the related
         benefits will be paid from the Company's overfunded pension plan.
 
     Financial Highlights are provided solely to complement the content of the
 accompanying press release.
 
                               MAKE YOUR OPINION COUNT -  Click Here
              http://tbutton.prnewswire.com/prn/11690X12968713
 
 SOURCE  Norfolk Southern Corporation

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