Jan. 22 (Bloomberg) -- CSX Corp. and Norfolk Southern Corp.'s fourth-quarter profits rose as the companies increased rates for freight such as coal, overcoming declines in shipments.

CSX, the third-largest U.S. railroad, said today that net income climbed 5.2 percent from a year earlier to $365 million. Earnings at No. 4 Norfolk Southern gained 3.6 percent to $399 million.

The major U.S. railroads have been able to increase prices even as their freight traffic declined in 2007. The companies have benefited from their fuel-economy advantage over trucks during the housing-led economic slowdown.

``Yields were strong across most commodity carloads,'' Lee Klaskow, an analyst at Longbow Research, said in a report after CSX's earnings. ``The pricing story appears intact.'' Klaskow, based in Independence, Ohio, rates CSX ``neutral'' and Norfolk Southern ``buy.''

CSX, based in Jacksonville, Florida, rose $2.21, or 5.4 percent, to $43.41 at 4:18 p.m. in New York Stock Exchange composite trading and has increased 24 percent in the past 12 months. Norfolk Southern, based in Norfolk, Virginia, gained 92 cents, or 2.1 percent, to $45.07, in trading before its earnings were released, and has fallen 14 percent in the past 12 months.

Net income at CSX rose from $347 million a year earlier, as the company charged more to ship coal and agricultural products. Per-share earnings climbed to 86 cents from 75 cents, and sales increased 7.6 percent to $2.6 billion.

The earnings beat the 64 cents-a-share average of 14 analysts' estimates compiled by Bloomberg.

Norfolk Southern's net income increased from $385 million a year earlier, as revenue rose from coal and shipments carried by a train-truck combination. Per-share earnings climbed to $1.02 from 95 cents, with sales up 5.8 percent to $2.45 billion.

The profit per share exceeded the 91-cent average of 15 analysts' estimates.

To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net

Last Updated: January 22, 2008 18:31 EST