Norfolk Southern profit down 14 pct on weak coal - WTRF 7 News Sports Weather - Wheeling Steubenville

Norfolk Southern profit down 14 pct on weak coal

Posted: Updated:
  • BusinessBusinessMore>>

  • Autism training to expand from Huntington to Athens, WV

    Autism training to expand from Huntington to Athens, WV

    Wednesday, November 16 2016 9:45 AM EST2016-11-16 14:45:47 GMT

    The West Virginia Autism Training Center is expanding its reach in the state. WV ATC, located at Marshall University in Huntington, has partnered with Concord University to develop on-campus support in Athens for students who are diagnosed with an autism spectrum disorder.

    The West Virginia Autism Training Center is expanding its reach in the state. WV ATC, located at Marshall University in Huntington, has partnered with Concord University to develop on-campus support in Athens for students who are diagnosed with an autism spectrum disorder.

  • AT&T offering computer science grants

    AT&T offering computer science grants

    Monday, November 14 2016 5:08 PM EST2016-11-14 22:08:54 GMT

    Executives with ATTInternetService are offering computer sciences grants to university professors and secondary school teachers to upgrade technology in their classrooms.

    Executives with ATTInternetService are offering computer sciences grants to university professors and secondary school teachers to upgrade technology in their classrooms.

  • WV child advocacy, domestic violence groups get help from Verizon

    WV child advocacy, domestic violence groups get help from Verizon

    Thursday, October 27 2016 5:01 PM EDT2016-10-27 21:01:17 GMT

    The West Virginia Child Advocacy Network and West Virginia Coalition Against Domestic Violence are getting help from Verizon's HopeLine program to help those affected by domestic violence and child abuse.

    The West Virginia Child Advocacy Network and West Virginia Coalition Against Domestic Violence are getting help from Verizon's HopeLine program to help those affected by domestic violence and child abuse.

JOSH FUNK, AP Business Writer

OMAHA, Neb. (AP) — Weak coal demand is still weighing on Norfolk Southern Corp's profits, and executives at the railroad said Tuesday it's extremely difficult to predict when coal shipments will increase.

The railroad based in Norfolk, Va., said its fourth-quarter profit declined 14 percent to $413 million, or $1.30 per share. That's down from $480 million, or $1.42 per share, a year earlier.

Its quarterly revenue dipped to $2.68 billion from the previous year's $2.8 billion.

Despite the declines, the results still topped Wall Street expectations.

According to FactSet, analysts had expected Norfolk Southern to post earnings of $1.19 per share on $2.67 billion in revenue.

Norfolk Southern CEO Wick Moorman said increases in intermodal shipments — where a railroad moves containers from ships and trucks — and those of chemical, automotive and housing-related materials helped offset a 23 percent decline in coal revenue.

"We remain focused on controlling costs and improving productivity while continuing to provide high service levels for our customers," Moorman said.

Norfolk Southern said 590 railroad employees are currently on furlough. The railroad said it plans to reduce costs this year by eliminating about 300 maintenance jobs because crews have become more efficient. The railroad said it plans to reduce its expenses by $100 million this year.

Partly because of the uncertainty about coal, Norfolk Southern plans to reduce its capital spending by 10 percent in 2013 from last year's $2.2 billion, but it will still invest $2 billion in its network.

The weak demand from utilities is a big part of why Norfolk Southern and other railroads are hauling less coal. Moorman said several things must happen before coal demand will increase: Natural gas prices must increase, the economy must improve and normal cold winters and hot summer temperatures must return.

For all of 2012, Norfolk Southern said its net income declined 9 percent to $1.75 billion, or $5.37 per share, on revenue of $11 billion. That's down from $1.9 billion net income, or $5.45 per share, in 2011 on $11.2 billion revenue.

Norfolk Southern operates about 20,000 miles of rail in 22 states, and the railroad serves all major container ports on the East Coast.

Union Pacific Corp., the biggest railroad in the U.S., will release its fourth-quarter results on Thursday.

 

Copyright 2013 The Associated Press

Powered by Frankly