NS set the following fourth-quarter records:
-- Railway operating revenues reached $2.5 billion, up 2 percent. -- Income from railway operations rose 19 percent to $813 million. -- Net income increased 13 percent to $452 million. -- Diluted earnings per share rose 19 percent to $1.21. -- The operating ratio improved by 4.5 percentage points to 67.5 percent.
NS set the following records for the year:
-- Railway operating revenues increased 13 percent to $10.7 billion. -- Income from railway operations rose 19 percent to $3.1 billion. -- Net income was $1.7 billion, up 17 percent. -- Diluted earnings per share climbed 23 percent to $4.52. -- The operating ratio improved by 1.5 percentage points to 71.1 percent.
Norfolk Southern Corporation (NYSE: NSC) today reported record fourth-quarter 2008 net income of
"Norfolk Southern delivered strong financial results in the fourth quarter, despite economic conditions that reduced freight volumes," said CEO Wick Moorman. "While it is unclear how long the downturn will last, long-term trends point to freight railroads as the preferred way to move goods and relieve highway congestion. We will continue to make investments in our company and, in 2009, plan to invest
Railway operating revenues were a fourth-quarter record
General merchandise revenues were
Coal revenues climbed 33 percent to
Intermodal revenues were
Railway operating expenses were
Income from railway operations set records for both the fourth quarter and the year, climbing 19 percent to
The fourth-quarter operating ratio reached a record 67.5 percent, a 4.5 percentage point improvement compared with the same period last year. For the year, the operating ratio improved by 1.5 percentage points to a record 71.1 percent compared with 2007.
Norfolk Southern Corporation is one of the nation's premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the
Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) ($ millions except per share) Three Months Ended Dec. 31, 2008 2007 ---- ---- Railway operating revenues: Coal $798 $601 General merchandise (note 2) 1,224 1,357 Intermodal 480 496 Total railway operating revenues 2,502 2,454 Railway operating expenses: Compensation and benefits 609 623 Purchased services and rents 405 396 Fuel 269 353 Depreciation 206 197 Materials and other 200 199 Total railway operating expenses 1,689 1,768 Income from railway operations 813 686 Other income - net 18 34 Interest expense on debt 112 108 Income before income taxes 719 612 Provision for income taxes: Current 158 107 Deferred 109 106 Total income taxes 267 213 Net income $452 $399 Earnings per share: Basic $1.23 $1.04 Diluted $1.21 $1.02 Weighted average shares outstanding (millions) (note 4): Basic 365.8 381.6 Diluted 372.4 389.9
Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) ($ millions except per share) Years Ended Dec. 31, 2008 2007 ---- ---- Railway operating revenues: Coal (note 1) $3,111 $2,315 General merchandise (note 2) 5,492 5,196 Intermodal 2,058 1,921 Total railway operating revenues 10,661 9,432 Railway operating expenses: Compensation and benefits (note 3) 2,684 2,552 Purchased services and rents 1,599 1,551 Fuel 1,638 1,169 Depreciation 804 775 Materials and other 852 800 Total railway operating expenses 7,577 6,847 Income from railway operations 3,084 2,585 Other income - net 110 93 Interest expense on debt 444 441 Income before income taxes 2,750 2,237 Provision for income taxes: Current 744 648 Deferred 290 125 Total income taxes 1,034 773 Net income $1,716 $1,464 Earnings per share: Basic $4.60 $3.74 Diluted $4.52 $3.68 Weighted average shares outstanding (millions) (note 4): Basic 372.3 389.6 Diluted 380.0 397.8
Norfolk Southern Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) ($ millions) As of Dec. 31, 2008 2007 ---- ---- Assets Current assets: Cash and cash equivalents $618 $206 Accounts receivable - net 870 942 Materials and supplies 194 176 Deferred income taxes 149 190 Other current assets 168 161 Total current assets 1,999 1,675 Investments 1,779 1,974 Properties less accumulated depreciation 22,247 21,583 Other assets 272 912 Total assets $26,297 $26,144 Liabilities and stockholders' equity Current liabilities: Accounts payable $1,140 $1,139 Income and other taxes 261 203 Other current liabilities 220 237 Current maturities of long-term debt 484 369 Total current liabilities 2,105 1,948 Long-term debt 6,183 5,999 Other liabilities 2,046 2,039 Deferred income taxes 6,366 6,431 Total liabilities 16,700 16,417 Stockholders' equity: Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 366,233,106 and 379,297,891 shares, respectively, net of treasury shares 368 380 Additional paid-in capital 1,680 1,466 Accumulated other comprehensive loss (952) (399) Retained income 8,501 8,280 Total stockholders' equity 9,597 9,727 Total liabilities and stockholders' equity $26,297 $26,144
Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) ($ millions) Years Ended Dec. 31, 2008 2007 ---- ---- Cash flows from operating activities: Net income $1,716 $1,464 Reconciliation of net income to net cash provided by operating activities: Depreciation 815 786 Deferred income taxes 290 125 Gains and losses on properties and investments (29) (51) Changes in assets and liabilities affecting operations: Accounts receivable 269 30 Materials and supplies (18) (25) Other current assets (8) (17) Current liabilities other than debt (262) 38 Other - net (58) (17) Net cash provided by operating activities 2,715 2,333 Cash flows from investing activities: Property additions (1,558) (1,341) Property sales and other transactions 109 124 Investments, including short-term (86) (635) Investment sales and other transactions 307 827 Net cash used in investing activities (1,228) (1,025) Cash flows from financing activities: Dividends (456) (377) Common stock issued - net 229 183 Purchase and retirement of common stock (note 4) (1,128) (1,196) Proceeds from borrowings 1,425 250 Debt repayments (1,145) (489) Net cash used in financing activities (1,075) (1,629) Net increase (decrease) in cash and cash equivalents 412 (321) Cash and cash equivalents: At beginning of year 206 527 At end of year $618 $206 Supplemental disclosure of cash flow information Cash paid during the period for: Interest (net of amounts capitalized) $421 $441 Income taxes (net of refunds) $615 $603
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS: 1. COAL REVENUES Third quarter 2008 includes $22 million related to a coal customer's 2008 contracted volume shortfall and a nonrecurring effect related to the implementation of NS' new export coal billing system. 2. CONTRACT SETTLEMENT Fourth quarter 2007 automotive revenue includes $26 million related to a contract settlement. 3. LABOR AGREEMENT 2008 includes $31 million for lump-sum payments (including payroll taxes) due under a new labor agreement with the Brotherhood of Locomotive Engineers and Trainmen (BLET). 4. STOCK REPURCHASE PROGRAM In March 2007, NS' Board of Directors amended the stock repurchase program that was authorized in November 2005 so as to increase the number of shares of NS common stock that may be repurchased from 50 million to 75 million. In addition, the term of the program was shortened from December 31, 2015 to December 31, 2010. During 2008, NS purchased and retired 19.4 million shares of common stock at a cost of $1.1 billion. Since inception of the stock repurchase program in 2006, NS has repurchased and retired 64.7 million shares at a total cost of $3.3 billion.
SOURCE Norfolk Southern Corporation