NORFOLK, Va., April 23, 2013 /PRNewswire/ --
For 2013 vs. 2012:
- Railway operating revenues were $2.7 billion.
- Income from railway operations was $691 million.
- Net income was $450 million, or $1.41 per diluted share.
- Net income included $60 million, or $0.19 per diluted share from a property sale.
- The 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 $691 million, 7 percent lower compared with the same period of 2012.
The railway operating ratio was 74.8 percent compared with 73.3 percent for first-quarter 2012.
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.
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Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
|
|
|
First Quarter
|
|
2013
|
|
2012
|
|
($ 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:
- 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.
- 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.
- 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