NS earnings up despite coal problems - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Norfolk Southern earnings up despite coal problems

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  • Many WV coal counties losing revenue

    Many WV coal counties losing revenue

    Monday, August 8 2016 10:15 AM EDT2016-08-08 14:15:05 GMT

    As Appalachian coal production continues its drastic decline, West Virginia’s coal-producing counties are  not only losing people as lifelong residents are forced to flee their homes in order to find work, but in many cases, they’re also relinquishing millions of dollars from their budgets.

    As Appalachian coal production continues its drastic decline, West Virginia’s coal-producing counties are  not only losing people as lifelong residents are forced to flee their homes in order to find work, but in many cases, they’re also relinquishing millions of dollars from their budgets.

Norfolk Southern Corp. overcame a 9 percent decrease in coal revenues to post net income of $482 million in the third quarter, up from $402 million in the same quarter last year.

Earnings growth was powered by growth in the railroad's chemicals, metals/construction, intermodal and automotive businesses, combined with ongoing productivity improvements, CEO Wick Moorman said in the quarterly earnings report released Oct. 23.

Railway operating revenues were $2.8 billion, 5 percent higher compared with third quarter 2012, with shipment volumes increasing 4 percent. Coal revenues were $641 million, 9 percent lower compared with the third quarter last year, due to lower average revenue per unit and a 2 percent decline in volumes.

Utility coal shipments were down 2 percent to 25.4 million tons, but tonnage for export was up 5 percent to 6.5 million tons. domestic coal shipments were down 6 percent, and industrial shipments fell by 4 percent.

 

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