Norfolk Southern’s 1Q Income Rises

Eastern freight railroad Norfolk Southern Corp. said its first-quarter profit rose 2%, as higher revenue per shipment offset an overall drop in traffic and record fuel prices.

Norfolk Southern earned $291 million, or 76 cents per share, compared with $285 million, or 71 cents, a year ago, the railroad said late Tuesday.

Railway operating revenue rose 11% to a record $2.5 billion. General merchandise revenue rose 10% to $1.35 billion, Norfolk Southern said.

Intermodal revenue rose to $486 million, from $462 million a year ago.

Weakness in the automotive, housing, and intermodal shipments was partially offset by strong coal and agricultural volumes, the railroad said.