Norfolk Southern Expects Q1 Earnings To Drop

(RTTNews) - Railroad operator Norfolk Southern Corp. (NSC) Monday said it expects earnings for the first quarter to be about $1.00 per share, 15 percent below last year.

On average, 27 analysts polled by Thomson Reuters currently estimate earnings of $1.27 per share for the quarter. Analysts' estimates typically exclude one-time items.

First-quarter revenues are expected to be about $2.6 billion, a 5 percent decrease compared to last year. Analysts currently have a consensus revenue estimate of $2.69 billion for the quarter.

The company said the drop in earnings is primarily due to lower than expected revenues, although certain expense items also affected the comparison. Revenue decreases reflect reductions in fuel surcharge revenue in each of NS' three commodity groups, continued reductions in coal volumes, and a lower average revenue per unit related to the mix of business.

"Our goal remains the same: to operate an efficient, high velocity railroad, which enables us to offer the best possible customer service and retain and grow our business at rates that provide a superior return for our owners," said CEO Wick Moorman.

NSC closed Monday's regular trading at $104.87, down $1.48 or 1.39%, on the NYSE. The stock further slipped $3.87 or 3.69% in the after-hours trade.