Norfolk Southern 1st-qtr earnings up 45 percent on improving economy, depite high fuel prices

Norfolk Southern 1Q earnings up 45 percent

NEW YORK — Norfolk Southern said Tuesday the economy picked up steam in the first three months of the year, driving its profit up 45 percent despite sharply higher fuel prices.

The railroad also said Tuesday it’s seeing shipping trends improve in April.

Norfolk Southern earned $257 million, or 68 cents per share in the first-quarter, compared with $177 million, or 47 cents per share, a year earlier. The most recent quarter included a charge of 7 cents per share related to the newly enacted health care law.

Revenue rose 15 percent to $2.22 billion. Fuel prices shot up 60 percent from a year ago.

Thomson Reuters says analysts on average expected profit of 66 cents per share on revenue of $2.11 billion.

Norfolk Southern, based in Norfolk, Va., said revenue for general merchandise — its biggest segment, which includes a wide range of products from food to cars, rose 23 percent.

Revenue from coal shipments increased 4 percent, mostly from the uptick in global steel production. Rival CSX said earlier this month its first-quarter profit rose 20 percent, but coal shipments were still weak.

Revenue from Norfolk Southern’s intermodal segment, which includes transfers from trucks and ships, rose 12 percent. That’s a good sign that consumer spending is improving, because many retail goods are shipped that way.

Norfolk Southern shares lost about 2.4 percent in the regular session Tuesday as the broader market declined. They added 50 cents at $60.30 in aftermarket trading.