Railroad News

The Class I is in the second year of a five-year plan to streamline operations, improve customer service, and increase traffic, revenue and profits.Photo – Norfolk Southern Corp.

Norfolk Southern Corp. is improving its corporate performance through "successful execution" of the company's five-year strategic plan, Chairman, President and Chief Executive Officer James Squires announced today at the company's annual meeting.

Last year was the first full year of the company's strategic plan to operate a faster, lower-cost and more profitable railroad. The Class I's achievements last year included an "all-time best" operating ratio of 68.9 percent, productivity savings of $250 million, near record levels of network service performance and record locomotive fuel efficiency, according to an NS press release.

Norfolk Southern Corp. today reported first-quarter records for operating ratio, income from operations and earnings per share.

Q1 2017 net income rose 12 percent to $433 million compared with a year ago, due to a 7 percent rise in income from railway operations, as well as a lower effective income tax rate, NS executives said in a press release.

Norfolk Southern Corp. yesterday posted its 2016 annual report online, highlighting its progress at achieving first-year goals in the Class I's five-year strategic plan to streamline operations and drive profitability and growth.

In the report, NS Chief Executive Officer James Squires told shareholders that the company in 2016 met or exceeded its targets to lower operating costs, increase profitability and improve customer service, which put NS "well on our way to achieving our 2020 goals."

Norfolk Southern Railway's safety train will stop in 23 cites this year as part of the Class I's Operation Awareness and Response (OAR) program to provide first responders with free training on how to respond to a railroad accident.

The train will kick off today in Hagerstown, Md., with three days of training at the NS terminal there, NS officials said in a press release.

Norfolk Southern Railway yesterday opened a new locomotive maintenance and repair facility in Chicago to improve operational efficiency for trains moving through the area.

NS' $9.5 million investment expands the Class I's locomotive repair capabilities in the Chicago region. Previously, locomotives in need of more extensive maintenance were transported to other repair shops on the NS system, company officials said in a press release.

Norfolk Southern Corp. yesterday named six people who will begin serving new positions and duties in the coming months.

The appointments reflect the "deep strength and versatility" of the company's management team, said NS Chairman, President and Chief Executive Officer James Squires in a press release.

Norfolk Southern Corp. reported fourth-quarter 2016 net income rose 15 percent to $416 million, or $1.42 diluted earnings share, from $361 million, or $1.20 diluted earnings per share, in the same period a year ago.

Railway operating revenue during the quarter declined 1 percent to $2.5 billion compared with Q4 2015, reflecting lower merchandise and coal traffic, as well as reduced fuel surcharges.