Financial Data and Key Metrics Changes - The company reported adjusted operating income of $1.1 billion, net income of $694 million, and diluted earnings per share of $3.06, with a sequential margin improvement of 480 basis points on adjusted operating ratio [91][92][128] - The operating ratio (OR) was 65.1% in the second quarter, with a first half OR of 67.5%, indicating progress towards the target of sub-60% [110][159] - Operating expenses decreased by $7 million year-over-year despite inflationary pressures, reflecting strong cost management [129][132] Business Line Data and Key Metrics Changes - Intermodal revenue was flat, with an 8% increase in volume but an 8% decline in revenue per unit (RPU) [60][148] - Merchandise revenue improved by 4% with a 2% increase in volume and a 3% rise in RPU [148] - Coal revenue declined by 3% on a 2% volume decrease, impacted by the outage of the Francis Scott Bridge in Baltimore [60][106] Market Data and Key Metrics Changes - The company is experiencing significant volume growth in lower-rated merchandise commodities like aggregates and finished vehicles, which move at the lower end of the RPU spectrum [61] - The intermodal segment is seeing increased international shipments due to rising import and export demand, while domestic volumes face headwinds from excess capacity and weak truck prices [151] Company Strategy and Development Direction - The company is focused on improving service, productivity, and growth while maintaining safety as a core principle [110][111] - A multi-year plan aims to reduce OR to a sub-60% rate, with ongoing initiatives to enhance operational efficiency and reduce costs [67][135] - The company is targeting growth in high-quality carload revenue and leveraging strategic capital investments to support economic growth in its network [126][153] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming market challenges and reaffirmed guidance for the second half of the year, despite a weaker revenue outlook [159] - The company anticipates continued productivity improvements and is focused on regaining market share in merchandise [36][66] - Management highlighted the importance of operational agility and the positive impact of recent initiatives on service reliability and cost efficiency [132][135] Other Important Information - The company is committed to maintaining a strong safety culture and has made significant progress in reducing accident rates [95][111] - The company is actively pursuing real estate transactions to simplify its network and generate cash flow [158] Q&A Session Summary Question: What is the outlook for intermodal yields? - Management indicated that intermodal yields are at a bottom, with expectations for improvement as highway rates stabilize and capacity drops from highway carriers [163][164] Question: How is the company addressing the adverse mix in intermodal? - The company is focused on earning back merchandise share and leveraging improved service and car supply to drive volume growth [166] Question: What are the expectations for operating ratio in the upcoming quarters? - Management acknowledged headwinds from wage increases and fuel costs but expressed confidence in achieving the targeted OR range of 64% to 65% [170][173]

View all Key Company Metrics for Norfolk Southern here>>> Shares of Norfolk Southern have returned +4.2% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. The reported revenue compares to the Zacks Consensus Estimate of $3.02 billion, representing a surprise of +0.72%. The company delivered an EPS surprise of +7.37%, with the consensus EPS estimate being $2.85. Whil ...

Norfolk Southern (NSC) came out with quarterly earnings of $3.06 per share, beating the Zacks Consensus Estimate of $2.85 per share. This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items. Norfolk Southern, which belongs to the Zacks Transportation - Rail industry, posted revenues of $3.04 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $2.98 billion. The company has topped c ...

• Total T&E expense per GTM improved 8% • Restructured Merchandise operating plan • Crew starts reduced by 110/day • ~250k annual handlings removed • Overtime reduced ~20% • ~7,000 cars moved offline, byproduct of car velocity gains • Improve fuel efficiency through operating and distribution enhancements A BETTER WAY 7 VELOCITY DRIVING MERCHANDISE GAINS • Car velocity +16% Capturing growth and providing enhanced service on a more efficient train plan 36 out of 37 consecutive quarters of y-o-y RPU (less fue ...

| --- | --- | --- | --- | |---------------------------------|---------------------------------|-----------|-----------------------| | | June 30, \n2024 \n($ in | millions) | December 31, \n2023 | | Assets | | | | | Current assets: | | | | | Cash and cash equivalents | $ 659 | $ | 1,568 | | Accounts receivable – net | 1,189 | | 1,147 | | Materials and supplies | 308 | | 264 | | Other current assets | 148 | | 292 | | Total current assets | 2,304 | | 3,271 | | --- | --- | --- | --- | --- | |------------------- ...

The dividend is payable August 20, 2024, to shareholders of record on August 2, 2024. About Norfolk Southern SOURCE Norfolk Southern Corporation ATLANTA, July 23, 2024 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced Tuesday a quarterly dividend of $1.35 per share on its common stock. The company has paid a dividend on its common stock for 168 consecutive quarters since its formation in 1982. Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely mov ...

Norfolk Southern Corporation (NSC) is scheduled to report second-quarter 2024 results on Jul 25 after market close. Let's see how things have shaped up for NSC this earnings season. The Zacks Consensus Estimate for revenues is pegged at $3.05 billion, which indicates a 2.43% rise from the year-ago reported level. The top line is likely to have been affected by the performances of all three key segments — Merchandise, Intermodal and Coal. The recent negotiations with various labor groups are likely to have p ...

Norfolk Southern (NSC) is bolstered by its shareholder-friendly approach. The company's efforts to reduce greenhouse gas emissions are praiseworthy. However, Norfolk Southern is grappling with a surge in operating expenses. NSC's "Forging a Better Tomorrow" initiative, outlined in its inaugural Climate Transition Plan, aims for a 42% reduction in greenhouse gas emission intensity by 2034. Key performance indicators include improving locomotive fuel efficiency by 13% by 2027, increasing renewable energy usag ...

"At Norfolk Southern, we are dedicated to leaving the planet better than we found it, each customer and community well-served, and each employee experience enriched," said Norfolk Southern President and CEO Alan H. Shaw. "Our investments in safety, our people, and sustainability are not only fundamental to our values but are also aligned to our strategy of driving innovation, operational excellence, and sustainable growth, ensuring long-term value for all stakeholders." Fuel Efficiency: improving locomotive ...

NTSB Chair visits Norfolk Southern headquarters to discuss company's progress on safety initiatives During her visit today, Chair Jennifer Homendy met with senior leadership to discuss Norfolk Southern's progress in implementing safety initiatives aligned to the NTSB report. She addressed more than 80 operational leaders during the railroad's Safety Summit, a three-day seminar bringing together labor leaders and field supervisors to enhance the company's safety culture. She also toured Norfolk Southern's Ne ...