Norfolk Southern reported a 24-percent, year over year, increase in its fourth-quarter net income and a 9-percent increase in net income for 2013, when compared to 2012's results.
Also in the fourth quarter, the company totaled $2.9 billion in operating revenues, and $881 million in income, a 23-percent increase.
These results, according to Chief Executive Officer Wick Moorman, were accomplished through "increased productivity, efficient network operations and continued revenue gains.
”We’re seeing the results of our investments in network capacity and technology enhance our ability to offer superior service to all of our customers."
For 2013, the company reported a 4-percent increase in railway operation income, and $1.9 billion in net income, up 9 percent.
Company officials said they plan to invest $2.2 billion in 2014, a 12-percent increase over 2013, in order to “maintain safe railway operations, purchase locomotives and freight cars, and support growth and productivity initiatives.”
In the fourth quarter, chemical transportation was up 21 percent, while the carriage of metals and construction rose 12 percent. Intermodal ticked up by 6 percent. Coal fell by 2 percent.
In an investor note, Cowen and Company noted Norfolk Southern’s fourth-quarter success, stating that “despite continuing pressures on the coal market, the normally conservative management team noted they feel the economy is stronger than it was in 2013. We continue to believe the company is well-positioned to benefit from these macro trends and that NSC’s shares are undervalued versus their peers.”