Norfolk Southern Reports Record Income for 4Q, Year

January 25, 2006 11:00 AM, EST

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orfolk Southern Corp., which operates an eastern freight railroad, Wednesday reported it earned a record $362 million or 87 cents a share for the fourth quarter, compared with $264 million or 65 cents in 2004's fourth quarter.

Railway operating revenue increased 16% to a record $2.3 billion for the quarter, NS said. General merchandise revenue climbed to a record $1.2 billion, up 16% from the previous fourth quarter.

Net income for the year rose to $1.3 billion or $3.11 a share, compared with $923 million or $2.31 for 2004. For the year, revenue rose 17% to a record $8.5 billion.

Separately, NS said it would boost its quarterly dividend to 16 cents per share, payable on March 10 to stockholders of record as of Feb. 3.

Intermodal revenue rose 18% to $519 million in the quarter, the highest for any quarter in its history. For the year, intermodal revenue reached a record $1.8 billion, 19% over the same period a year earlier.

Total intermodal units transported set fourth-quarter and annual records. The increase in traffic volume and higher average revenues, which included fuel surcharges, boosted the growth, NS said.