Norfolk Southern reports first-quarter 2013 results PR Newswire NORFOLK, Va., April 23, 2013 NORFOLK, Va., April 23, 2013 /PRNewswire/ -- For 2013 vs. 2012: oRailway operating revenues were $2.7 billion. oIncome from railway operations was $691 million. oNet income was $450 million, or $1.41 per diluted share. oNet income included $60 million, or $0.19 per diluted share from a property sale. oThe first-quarter railway operating ratio was 74.8 percent. For the first quarter of 2013, Norfolk Southern Corporation (NYSE: NSC) reported net income of $450 million, or $1.41 per diluted share, 10 percent higher than $410 million, or $1.23 per diluted share, for the first quarter of 2012. First-quarter results included a gain from the sale of land to the Michigan Department of Transportation, which increased net income by $60 million, or $0.19 per diluted share. "We're pleased with Norfolk Southern's first-quarter results, which illustrate our diverse customer base, superior operating performance, productivity initiatives, and expense controls," said CEO Wick Moorman. "We are working to ensure that our rail franchise continues to thrive regardless of how our business mix changes." Railway operating revenues were $2.7 billion, 2 percent lower compared with first-quarter 2012, but shipment volumes increased 3 percent. General merchandise revenues were $1.5 billion, 2 percent higher compared with first-quarter 2012, driven by increased shipments of chemicals and automobiles. First-quarter coal revenues were $635 million, down 17 percent compared with the same quarter last year, due to lower average revenue per unit and a 4 percent decline in volume, the result of mild winter weather and low natural gas prices. Intermodal revenues climbed 9 percent to $573 million as volumes increased by 9 percent compared with first-quarter 2012. Railway operating expenses for the quarter were $2.0 billion, about even compared with first-quarter 2012. Income from railway operations for the first quarter was $691 million, 7 percent lower compared with the same period of 2012. The railway operating ratio was 74.8 percent compared with 73.3 percent for first-quarter 2012. Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products. Connect with NS http://www.nscorp.com/ http://www.facebook.com/NorfolkSouthern http://www.flickr.com/photos/norfolksouthern http://www.twitter.com/nscorp http://www.youtube.com/user/norfolksoutherncorp http://www.nscorp.com/nscportal/nscorp/RSS/rss.html Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) First Quarter 2013 2012 ($ in millions, except per share amounts) Railway operating revenues Coal $ 635 $ 766 General merchandise 1,530 1,496 Intermodal 573 527 Total railway operating revenues 2,738 2,789 Railway operating expenses Compensation and benefits 780 786 Purchased services and rents 393 391 Fuel 429 413 Depreciation 227 224 Materials and other 218 230 Total railway operating expenses 2,047 2,044 Income from railway operations 691 745 Other income – net (note 1) 135 29 Interest expense on debt 129 120 Income before income taxes 697 654 Provision for income taxes Current 173 156 Deferred 74 88 Total income taxes 247 244 Net income $ 450 $ 410 Earnings per share (notes 1 & 2) Basic $ 1.43 $ 1.24 Diluted 1.41 1.23 Weighted average shares outstanding (note 3) Basic 314.5 328.3 Diluted 318.1 332.9 See accompanying notes to consolidated financial statements. Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited) First Quarter 2013 2012 ($ in millions) Net income $ 450 $ 410 Other comprehensive income, before tax: Pension and other postretirement benefits 36 32 Other comprehensive income (loss) of equity investees 1 (4) Other comprehensive income, before tax 37 28 Income tax expense related to items of other comprehensive income (14) (12) Other comprehensive income, net of tax 23 16 Total comprehensive income $ 473 $ 426 See accompanying notes to consolidated financial statements. Norfolk Southern Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) March 31, December 31, 2013 2012 ($ in millions) Assets Current assets: Cash and cash equivalents $ 672 $ 653 Short-term investments 15 15 Accounts receivable – net 1,158 1,109 Materials and supplies 246 216 Deferred income taxes 167 167 Other current assets 65 82 Total current assets 2,323 2,242 Investments 2,341 2,300 Properties less accumulated depreciation of $10,042 and $9,922, respectively 25,870 25,736 Other assets 65 64 Total assets $ 30,599 $ 30,342 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 1,188 $ 1,362 Short-term debt - 200 Income and other taxes 319 206 Other current liabilities 350 263 Current maturities of long-term debt 47 50 Total current liabilities 1,904 2,081 Long-term debt 8,438 8,432 Other liabilities 2,226 2,237 Deferred income taxes 7,921 7,832 Total liabilities 20,489 20,582 Stockholders' equity: Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 315,088,379 and 314,034,174 shares, respectively, net of treasury shares 316 315 Additional paid-in capital 1,976 1,911 Accumulated other comprehensive loss (1,086) (1,109) Retained income 8,904 8,643 Total stockholders' equity 10,110 9,760 Total liabilities and stockholders' equity $ 30,599 $ 30,342 See accompanying notes to consolidated financial statements. Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) First Quarter 2013 2012 ($ in millions) Cash flows from operating activities Net income $ 450 $ 410 Reconciliation of net income to net cash provided by operating activities: Depreciation 228 226 Deferred income taxes 74 88 Gains and losses on properties and investments (note 1) (99) (1) Changes in assets and liabilities affecting operations: Accounts receivable (49) (34) Materials and supplies (30) (19) Other current assets 17 5 Current liabilities other than debt 96 316 Other – net 36 44 Net cash provided by operating activities 723 1,035 Cash flows from investing activities Property additions (379) (461) Property sales and other transactions 19 2 Investments, including short-term (5) (4) Investment sales and other transactions (1) 27 Net cash used in investing activities (366) (436) Cash flows from financing activities Dividends (157) (155) Common stock issued – net 55 31 Purchase and retirement of common stock (note 3) (33) (400) Proceeds from borrowings – net - 696 Debt repayments (203) (218) Net cash used in financing activities (338) (46) Net increase in cash and cash equivalents 19 553 Cash and cash equivalents At beginning of period 653 276 At end of period $ 672 $ 829 Supplemental disclosures of cash flow information Cash paid during the period for: Interest (net of amounts capitalized) $ 62 $ 60 Income taxes (net of refunds) 23 2 See accompanying notes to consolidated financial statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS: 1.OTHER INCOME – NET First quarter 2013 results include a $97 million land sale gain, which increased net income by $60 million or $0.19 per share. 2.EARNINGS PER SHARE For basic earnings per share, income available to common stockholders reflects reductions for the effect of dividend equivalent payments made to holders of stock options and restricted stock units as follows: for the first quarter, $2 million in 2013 and $3 million in 2012. For diluted earnings per share, income available to common stockholders reflects reductions for the effect of dividend equivalent payments made to holders of stock options and restricted stock units as follows: for the first quarter, $1 million in 2013 and $2 million in 2012. 3.STOCK REPURCHASE PROGRAM We repurchased and retired 0.5 million shares of common stock in the first quarter of 2013, at a cost of $33 million, and 5.7 million shares at a cost of $400 million for the same period of 2012. On August 1, 2012, our Board of Directors authorized the repurchase of up to an additional 50 million shares of common stock through December 31, 2017. The timing and volume of purchases is guided by our assessment of market conditions and other pertinent factors. Any near-term share repurchases are expected to be made with internally generated cash, cash on hand, or proceeds from borrowings. Since the beginning of 2006, we have repurchased and retired 128.9 million shares at a total cost of $7.5 billion. SOURCE Norfolk Southern Corporation Website: http://www.nscorp.com Contact: (Media) Frank Brown, 757-629-2710 (firstname.lastname@example.org), (Investors) Michael Hostutler, 757-629-2861 (email@example.com)
Norfolk Southern reports first-quarter 2013 results
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