Norfolk Southern 3Q Profit Moves Lower
October 28 2020 - 8:53AM
Dow Jones News
By Micah Maidenberg
Norfolk Southern Corp. said profit moved lower for the third
quarter in part because several key products the railroad ships
remained weak as the economy looks to rebound from the effects of
the Covid-19 pandemic.
The railroad company with a network that covers parts of the
South, Northeast and Midwest on Wednesday reported net income of
$569 million, or $2.22 a share, down from $643 million, or $2.51 a
share, a year earlier.
After adjusting for a $99 million non-cash impairment, Norfolk
reported an adjusted profit of $2.51 a share, ahead of the $2.38 a
share that analysts expected for that metric.
Operating revenue fell to $2.51 billion for the quarter, from
$2.84 billion, but was a bit more than what analysts were looking
for, according to FactSet.
Railroads have been looking for traction in the economy
following coronavirus-related shutdowns earlier this year that
hampered demand for many products. Like other railroads, Norfolk
Southern's third-quarter results were improved compared with the
second period of the year.
The Norfolk, Va.-based company said revenue tied to chemical
shipments dropped 20% in the third quarter versus the year-earlier
quarter, however.
Those tied to agriculture, forest and consumer products were
down 9% on that basis, and they fell 38% for coal. Automotive
shipments, a smaller part of Norfolk Southern's operation, rose
9%.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 28, 2020 08:38 ET (12:38 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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