Norfolk Southern Corporation today reported fourth-quarter and full-year 2021 financial results which included fourth-quarter and full-year records for income from railway operations and operating ratio.
Fourth-quarter net income was $760 million, diluted earnings per share were $3.12, and the operating ratio improved to 60.4%. Full-year net income was $3.0 billion, diluted earnings per share were $12.11 and the operating ratio improved to 60.1%.
Fourth-quarter summary
- Railway operating revenues of $2.85 billion increased 11%, or $279 million, compared with fourth-quarter 2020, driven by a 15% increase in revenue per unit.
- Railway operating expenses were $1.7 billion, an increase of 8%, or $134 million, compared with the same period last year due to higher fuel and purchased services expenses.
- Income from railway operations was a fourth-quarter record of $1.1 billion, an increase of 15%, or $145 million, year-over-year.
- The railway operating ratio was 60.4%, a fourth-quarter record.
2021 summary
- Railway operating revenues of $11.1 billion improved 14%, or $1.35 billion, reflecting an 8% increase in revenue per unit and 5% higher volume versus a year ago. Volume increased in all major commodity groups.
- Railway operating expenses were $6.7 billion, a decrease of 1%, or $92 million, compared with last year.
- Last year’s results included a $385 million non-cash locomotive rationalization charge and a $99 million non-cash impairment charge related to an equity-method investment. Excluding those charges, operating expenses were up 6%, or $392 million, compared with adjusted operating expenses in 2020, driven by higher fuel, purchased services and compensation and benefit expenses.
- Income from railway operations was a record $4.45 billion, up 48% or $1.45 billion.
- Excluding the effects of the locomotive rationalization and impairment charges in 2020, income from railway operations was up 28%, or $961 million, on a year-over-year adjusted basis.
- Railway operating ratio was 60.1%, an all-time record and an improvement of 920 basis points over 2020.
- Excluding the effects of the locomotive rationalization and impairment charges in 2020, the operating ratio improved 430 basis points over the adjusted results for 2020.
-via Press Release