By Micah Maidenberg
Norfolk Southern Corp. said profit moved lower for the third quarter in part because several key products the railroad ships remained weak as the economy looks to rebound from the effects of the Covid-19 pandemic.
The railroad company with a network that covers parts of the South, Northeast and Midwest on Wednesday reported net income of $569 million, or $2.22 a share, down from $643 million, or $2.51 a share, a year earlier.
After adjusting for a $99 million non-cash impairment, Norfolk reported an adjusted profit of $2.51 a share, ahead of the $2.38 a share that analysts expected for that metric.
Operating revenue fell to $2.51 billion for the quarter, from $2.84 billion, but was a bit more than what analysts were looking for, according to FactSet.
Railroads have been looking for traction in the economy following coronavirus-related shutdowns earlier this year that hampered demand for many products. Like other railroads, Norfolk Southern's third-quarter results were improved compared with the second period of the year.
The Norfolk, Va.-based company said revenue tied to chemical shipments dropped 20% in the third quarter versus the year-earlier quarter, however.
Those tied to agriculture, forest and consumer products were down 9% on that basis, and they fell 38% for coal. Automotive shipments, a smaller part of Norfolk Southern's operation, rose 9%.
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(END) Dow Jones Newswires
October 28, 2020 08:38 ET (12:38 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.