Norfolk Southern has released the full-year report on its 2019 financial results, recording an operating revenue decrease by 1% reaching $11.3bn as overall volumes were down 5%, while operating income increased by 1% to $4bn y-o-y due to operating expenses decreasing $192m or 3% compared to last year.
The railway operating expense decrease of 3% is mainly constituted by lower compensation and benefits, fuel costs, equipment rents, and materials costs were partially offset by lower gains on operating property sales as well as increased purchased services and depreciation expense.
James A. Squires, Norfolk Southern chairman, president and CEO, said “with efficiency-related cost savings gaining steam in the third quarter and increasing in the fourth quarter, we achieved a record full-year operating ratio while also producing all-time best delivery performance for customers. This was the result of extensive systemwide planning integrated with customer communications during the first half of the year that created a foundation for the flawless execution of the initial two phases of our PSR-based operating plan, TOP21, in the second half.”
Source: Norfolk Southern
