ATLANTA, July 25,
2024 /PRNewswire/ -- Norfolk Southern Corporation
(NYSE: NSC) announced Thursday its second quarter 2024
financial results. For the quarter, income from railway operations
was $1.1 billion, the operating ratio
was 62.8%, and diluted earnings per share were $3.25.
After adjusting the results to exclude the impact of the
Eastern Ohio incident,
restructuring and other charges, and shareholder advisory costs
from the proxy contest, railway operating income was $1.1 billion, the operating ratio was 65.1%, and
diluted earnings per share were $3.06. Notably, in the second quarter, the impact
of the Eastern Ohio incident
included insurance recoveries which were greater than the costs
incurred in the quarter.
"The Norfolk Southern team delivered strong results, including
on operating ratio and expenses, that are directly in-line with the
targets we committed to our shareholders," said Norfolk Southern
President and CEO Alan H. Shaw.
"During the quarter, we demonstrated that we are leveraging our
service product to secure volume growth, enhancing our safety
culture, and accelerating operational improvements, while
eliminating service recovery costs. These results show that our
strategy is working and that our momentum is building. We are
committed to accomplishing even more in the second half of 2024,
and we reaffirm our guidance of a full-year adjusted operating
ratio of approximately 66%."
Second Quarter Summary
- Railway operating revenues of $3.0
billion, up $64 million, or
2%, compared to the second quarter of 2023.
- Income from railway operations was $1.1
billion, an increase of $555
million, or 96%, compared to second quarter of 2023.
- Adjusting for the Eastern Ohio
incident and restructuring and other costs, income from railway
operations was $1.1 billion, up
$71 million, or 7%, compared to
second quarter 2023.
- Operating ratio in the quarter was 62.8% compared to 80.7% in
second quarter 2023.
- On an adjusted basis, the operating ratio for second quarter
2024 was 65.1%. This represents 160 basis points of improvement
from second quarter 2023 which was 66.7%.
- Diluted earnings per share were $3.25, an increase of 108% compared to second
quarter 2023.
- Adjusting for the Eastern Ohio
incident, restructuring and other costs, diluted earnings per share
were $3.06, up $0.11, or 4%, compared to second quarter
2023.
About Norfolk Southern
Since 1827, Norfolk Southern
Corporation (NYSE: NSC) and its predecessor companies have safely
moved the goods and materials that drive the U.S. economy. Today,
it operates a customer-centric and operations-driven freight
transportation network. Committed to furthering sustainability,
Norfolk Southern helps its customers avoid approximately 15 million
tons of yearly carbon emissions by shipping via rail. Its dedicated
team members deliver more than 7 million carloads annually, from
agriculture to consumer goods, and Norfolk Southern originates more
automotive traffic than any other Class I Railroad. Norfolk
Southern also has the most extensive intermodal network in the
eastern U.S. It serves a majority of the country's population and
manufacturing base, with connections to every major container port
on the Atlantic coast as well as major ports in the Gulf of Mexico and Great Lakes. Learn more by
visiting www.NorfolkSouthern.com.
Non-GAAP Financial Measures
Information included
within this press release contains non-GAAP financial measures,
including adjusted income from railway operations, adjusted
operating ratio, and adjusted diluted earnings per share. Non-GAAP
financial measures should be considered in addition to, not as a
substitute for, the financial measures reported in accordance with
U.S. generally accepted accounting principles (GAAP).
Our second quarter 2024 non-GAAP financial results exclude the
effects of certain expenses related to the Eastern Ohio incident, restructuring and other
charges, and shareholder advisory costs. The following table
adjusts our second quarter 2024 GAAP financial results to exclude
the effects of those items. The income tax effects of the non-GAAP
adjustments were calculated based on the applicable tax rates to
which the non-GAAP adjustments related. We use these non-GAAP
financial measures internally and believe this information provides
useful supplemental information to investors to facilitate making
period-to-period comparisons by excluding these costs. While we
believe that these non-GAAP financial measures are useful in
evaluating our business, this information should be considered as
supplemental in nature and is not meant to be considered in
isolation from, or as a substitute for, the related financial
information prepared in accordance with GAAP. In addition, these
non-GAAP financial measures may not be the same as similar measures
presented by other companies. With respect to our full-year
2024 adjusted operating ratio guidance, we are unable to predict or
estimate with reasonable certainty the ultimate outcome of certain
items required for the GAAP measure without unreasonable effort.
Information about the adjustments that are not currently available
to us could have a potentially unpredictable and significant impact
on future GAAP results.
($ in millions, except
per share amounts)
|
Second
|
|
|
|
Quarter
2024
|
|
|
|
|
Income from railway
operations
|
$
|
1,131
|
|
Effect of the Incident
and restructuring
and other charges
|
|
(68)
|
Adjusted income from
railway operations
|
$
|
1,063
|
|
|
|
|
Operating
ratio
|
|
62.8 %
|
|
Effect of the Incident
and restructuring
and other charges
|
|
2.3 %
|
Adjusted operating
ratio
|
|
65.1 %
|
|
|
|
|
Diluted earnings per
share
|
$
|
3.25
|
|
Effect of the Incident,
restructuring and
other charges, and shareholder advisory
costs
|
|
(0.19)
|
Adjusted diluted
earnings per share
|
$
|
3.06
|
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SOURCE Norfolk Southern Corporation