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Norfolk Southern 2Q down
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July 28, 1999: 3:33 p.m. ET
Integration of Conrail properties still taking toll on NS earnings
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NEW YORK (CNNfn) - Railroad company Norfolk Southern Corp. Wednesday announced a 58 percent drop in second quarter earnings, due to continued pressures from integrating properties acquired from Conrail.
Norfolk Southern earned 20 cents per diluted share in the second quarter this year, a penny under analysts expectations as reported by First Call Corp. The company earned 48 cents per diluted share in the comparison quarter in 1998.
Quarterly railway operating revenue increased 11 percent, to $1.194 billion from $1.079 billion, but this was offset by a 27 percent jump in railway expenditures.
"Our second-quarter results reflect in large measure both pressures on revenues and higher-than-anticipated expenses related to the many challenges of integrating our portion of the Conrail properties," David R. Goode, chairman, president and chief executive officer of Norfolk Southern, said in a statement.
Conrail acquisition proved costly for NS
Norfolk Southern (NSC) and CSX Corp. (CSX) agreed to a joint acquisition of Conrail in 1997 after bitter takeover battle. Both companies have experienced continuing pressure on their bottom lines after integration costs were much higher than expected.
In afternoon trading on the New York Stock Exchange shares of Norfolk Southern were up 1/16 to 30-1/8.
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Norfolk Southern
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