Norfolk Southern reports first-quarter 2014 results

             Norfolk Southern reports first-quarter 2014 results  PR Newswire  NORFOLK, Va., April 23, 2014  NORFOLK, Va., April 23, 2014 /PRNewswire/ -- Norfolk Southern (NYSE: NSC) reported first-quarter net income of $368 million, or $1.17 per diluted share, compared with $450 million, or $1.41 per diluted share, earned in the same period of 2013. First-quarter 2013 net income included a $60 million, or $0.19 per diluted share, gain from a land sale.  First-Quarter 2014 Results    oRailway operating revenues totaled $2.7 billion.   oIncome from railway operations was $667 million.   oNet income totaled $368 million.   oDiluted earnings per share of $1.17.   oThe railway operating ratio was 75.2 percent.  "Following the extreme winter weather across the U.S. rail network which impacted first-quarter results, we are seeing a rebound in shipments across all of our business," said Norfolk Southern CEO Wick Moorman. "Our people responded admirably to meet the challenges of the harsh conditions, and we remain focused on delivering superior service to our customers."  Railway operating revenues were $2.7 billion, 2 percent lower compared with first-quarter 2013, and shipment volumes decreased 1 percent.  First-Quarter Revenue by Commodity    oChemicals, up 12 percent.   oIntermodal, up 4 percent.   oAgriculture, even.   oMetals/Construction, down 1 percent.   oPaper/Forest, down 3 percent.   oAutomotive, down 7 percent   oCoal, down 15 percent.  For the first quarter, general merchandise revenues were $1.6 billion, 1 percent higher than the same period last year, despite overall volume declining 1 percent. Increased crude and liquefied petroleum gas shipments were offset by declines in automotive, metals/construction, and paper/forest shipments.  Intermodal revenues improved 4 percent, to $596 million, compared with first-quarter 2013. Growth primarily in domestic business pushed traffic volume up 3 percent in the quarter compared with the same period of 2013.  First-quarter coal revenues were $541 million, 15 percent lower compared with the same quarter of 2013, the result of a 13 percent volume decrease due primarily to lower utility and export shipments.  Railway operating expenses for the first quarter were $2 billion, 1 percent lower than in the same period of 2013.  Income from railway operations was $667 million, 3 percent lower compared with first-quarter 2013.  The quarterly railway operating ratio, or operating expenses as a percentage of revenue, was 75.2 percent versus 74.8 percent in the same period of 2013.  Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.  Connect with NS http://www.nscorp.com/  http://www.facebook.com/NorfolkSouthern  http://www.flickr.com/photos/norfolksouthern  http://www.twitter.com/nscorp  http://www.youtube.com/user/norfolksoutherncorp      Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)                                              First Quarter                                              2014               2013                                              ($ in millions, except per share                                              amounts) Railway operating revenues  Coal                                      $     541          $    635  General merchandise                             1,552             1,530  Intermodal                                      596               573 Total railway operating revenues                2,689             2,738 Railway operating expenses  Compensation and benefits                       740               780  Purchased services and rents                    392               393  Fuel                                            432               429  Depreciation                                    237               227  Materials and other                             221               218  Total railway operating expenses             2,022             2,047  Income from railway operations               667               691 Other income – net (note 1)                        26                135 Interest expense on debt                           139               129  Income before income taxes                      554               697 Provision for income taxes  Current                                         194               173  Deferred                                        (8)               74  Total income taxes                          186               247  Net income                              $     368          $    450 Earnings per share (note 1)  Basic                                     $     1.18         $    1.43  Diluted                                         1.17              1.41 Weighted average shares outstanding (note 2)  Basic                                           309.5             314.5  Diluted                                         312.6             318.1  See accompanying notes to consolidated financial statements.      Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited)                                                     First Quarter                                                     2014     2013                                                     ($ in millions) Net income                                          $ 368    $ 450 Other comprehensive income, before tax:  Pension and other postretirement benefits        299      36  Other comprehensive income of equity investees   3        1 Other comprehensive income, before tax                302      37 Income tax expense related to items of other  comprehensive income                             (114)    (14)  Other comprehensive income, net of tax           188      23   Total comprehensive income               $ 556    $ 473  See accompanying notes to consolidated financial statements.      Norfolk Southern Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited)                                                        March 31,  December 31,                                                        2014       2013                                                        ($ in millions) Assets Current assets:  Cash and cash equivalents                           $  1,522   $    1,443  Short-term investments                                 10           118  Accounts receivable – net                              1,109        1,024  Materials and supplies                                 240          223  Deferred income taxes                                  179          180  Other current assets                                   70           87  Total current assets                                   3,130        3,075 Investments                                               2,466        2,439 Properties less accumulated depreciation of $10,512 and $10,387,  respectively                                           26,768       26,645 Other assets                                              336          324  Total assets                                     $  32,700  $    32,483 Liabilities and stockholders' equity Current liabilities:  Accounts payable                                    $  1,194   $    1,265  Short-term debt                                        -            100  Income and other taxes                                 323          225  Other current liabilities                              359          270  Current maturities of long-term debt                   445          445  Total current liabilities                           2,321        2,305 Long-term debt                                            8,909        8,903 Other liabilities                                         1,130        1,444 Deferred income taxes                                     8,647        8,542 Total liabilities                                   21,007       21,194 Stockholders' equity:  Common stock $1.00 per share par value, 1,350,000,000 shares  authorized; outstanding 309,646,086 and 308,878,402 shares,  respectively, net of treasury shares                311          310  Additional paid-in capital                             2,085        2,021  Accumulated other comprehensive loss                   (193)        (381)  Retained income                                        9,490        9,339 Total stockholders' equity                           11,693       11,289 Total liabilities and stockholders' equity        $  32,700  $    32,483  See accompanying notes to consolidated financial statements.      Norfolk Southern Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)                                                               First Quarter                                                               2014     2013                                                               ($ in millions) Cash flows from operating activities  Net income                                                 $ 368    $ 450  Reconciliation of net income to net cash provided by operating activities:  Depreciation                                                 238      228  Deferred income taxes                                        (8)      74  Gains and losses on properties and investments (note 1)      (2)      (99)  Changes in assets and liabilities affecting operations:  Accounts receivable                                          (85)     (49)  Materials and supplies                                       (17)     (30)  Other current assets                                         17       17  Current liabilities other than debt                          86       96  Other – net                                                  (9)      36  Net cash provided by operating activities                    588      723 Cash flows from investing activities  Property additions                                           (381)    (379)  Property sales and other transactions                        22       19  Investments, including short-term                            (3)      (5)  Investment sales and other transactions                      108      (1)  Net cash used in investing activities                        (254)    (366) Cash flows from financing activities  Dividends                                                    (167)    (157)  Common stock issued – net                                    62       55  Purchase and retirement of common stock (note 2)             (50)     (33)  Debt repayments                                              (100)    (203)  Net cash used in financing activities                        (255)    (338)  Net increase in cash and cash equivalents                    79       19 Cash and cash equivalents  At beginning of period                                       1,443    653  At end of period                                           $ 1,522  $ 672 Supplemental disclosures of cash flow information  Cash paid during the period for:  Interest (net of amounts capitalized)                      $ 75     $ 62  Income taxes (net of refunds)                                60       23  See accompanying notes to consolidated financial statements.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:  1.Other Income – Net     In first quarter 2013, we recognized a $97 million gain on a     land sale, which increased net income by $60 million or $0.19 per share. 2.Stock Repurchase Program     In each of the first quarters of 2014 and 2013, we repurchased     0.5 million shares of common stock, totaling $50 million and $33 million,     respectively. We have remaining authorization from our Board of Directors     to repurchase up to 37.7 million shares 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 137.3 million shares at a total cost of $8.2     billion.  SOURCE Norfolk Southern Corporation  Website: http://www.nscorp.com Contact: (Media) Frank Brown, 757-629-2710 (fsbrown@nscorp.com); (Investors) Michael Hostutler, 757-629-2861 (michael.hostutler@nscorp.com)  
Press spacebar to pause and continue. Press esc to stop.