NORFOLK, Va., Jan. 25, 2011 /PRNewswire/ --

For fourth-quarter 2010 vs. fourth-quarter 2009:

• Railway operating revenues increased 14 percent to $2.4 billion.
• Income from railway operations improved 17 percent to $642 million.
• Net income increased 31 percent to $402 million.
• Diluted earnings per share rose 33 percent to $1.09.
• The railway operating ratio improved by 1 percent to 73.2 percent.

For 2010 vs. 2009:

• Railway operating revenues increased 19 percent to $9.5 billion.
• Income from railway operations improved 36 percent to $2.7 billion.
• Net income increased 45 percent to $1.5 billion.
• Diluted earnings per share rose 45 percent to $4.00.
• The railway operating ratio improved by 5 percent to 71.9 percent.

Norfolk Southern Corporation today reported fourth-quarter 2010 net income of $402 million, or $1.09 per diluted share, 31 percent higher compared with $307 million, or $0.82 per diluted share, for the same quarter of 2009.

Fourth-quarter 2010 results benefited from a $34 million, or $0.09 per diluted share, change in estimate affecting deferred income taxes.

Net income for 2010 was $1.5 billion, or $4.00 per diluted share, an increase of 45 percent, compared with $1.0 billion, or $2.76 per diluted share, in 2009.

"During 2010 we profitably grew the business, invested in the franchise, generated significant levels of cash, and produced attractive returns for our shareholders," said CEO Wick Moorman. "We have every reason to believe that 2011 will be an even stronger year for us."

Fourth-quarter railway operating revenues were $2.4 billion, 14 percent higher compared with the same period a year earlier.  For 2010, railway operating revenues increased 19 percent to $9.5 billion compared with 2009.

General merchandise revenues were $1.2 billion, up 10 percent compared with fourth-quarter 2009.  For 2010, general merchandise revenues were $5.0 billion, 20 percent higher compared with 2009.  General merchandise traffic volume increased 3 percent in the quarter and 14 percent for the year compared with the same periods of 2009.

Coal revenues in the fourth quarter were $685 million, up 18 percent compared with the same period last year.  For 2010, coal revenues were $2.7 billion, 20 percent higher compared with 2009.  Coal traffic volume increased 12 percent in the quarter and 10 percent for the year compared with the same periods of 2009.

Intermodal revenues were $471 million, up 16 percent compared with fourth-quarter 2009.  For the year, intermodal revenues were $1.8 billion, up 17 percent compared with 2009.  Intermodal traffic volume increased by 13 percent in the fourth quarter and 16 percent for 2010 compared with the same periods of 2009.

Railway operating expenses were $1.8 billion for the fourth quarter, 12 percent higher compared with the same period a year earlier.  For 2010, railway operating expenses were $6.8 billion, up 14 percent compared with 2009, primarily due to fuel expenses and higher costs associated with compensation and benefits.

Income from railway operations was $642 million for the fourth quarter, up 17 percent, and $2.7 billion for the year, up 36 percent, compared with the same periods of 2009.

The fourth-quarter railway operating ratio improved by 1 percent to 73.2 percent compared with the same period last year.  For 2010, the railway operating ratio improved by 5 percent to 71.9 percent compared with 2009.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies.  Its Norfolk Southern Railway subsidiary operates approximately 21,000 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 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

1. MATERIALS AND OTHER

Second quarter 2009 includes a $21 million favorable adjustment related to settlement of a multi-year state tax dispute.

2. DEFERRED TAXES

During the fourth quarter of 2010, NS recognized a $34 million non-recurring benefit resulting from a change in estimate for deferred taxes.  During the first quarter of 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 were signed into law.  Provisions of these Acts eliminate, after 2012, the tax deduction available for reimbursed prescription drug expenses under the Medicare Part D retiree drug subsidy program.  As required by ASC 740, "Income Taxes," NS recorded a $27 million charge to deferred tax expense.

3. EARNINGS PER SHARE    

As required under the provisions of the Financial Accounting Standards Board Accounting Standards Codification (ASC) 260-10, "Earnings Per Share," for basic earnings per share, income available to common stockholders for the fourth quarters of 2010 and 2009 reflects a $2 million reduction and for the years 2010 and 2009 an $8 million reduction from net income for the effect of dividend equivalent payments made to holders of stock options.  In addition, for the fourth quarters and years 2010 and 2009, diluted earnings per share were calculated under the more dilutive two-class method (as compared to the treasury stock method) and income available to common stockholders reflects a $2 million and $8 million reduction, respectively, from net income for dividend equivalent payments.

4. STOCK REPURCHASE PROGRAM    

On July 27, 2010, NS' Board of Directors authorized the repurchase of up to an additional 50 million shares of Norfolk Southern Corporation common stock (Common Stock) through December 31, 2014.  During 2010, NS purchased and retired 14.7 million shares of Common Stock at a cost of $863 million.  Since inception of the share repurchase program, NS has repurchased and retired 79.4 million shares at a total cost of $4.1 billion.

SOURCE Norfolk Southern Corporation