ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Thursday, April 24, 1997 TAG: 9704240066
SECTION: BUSINESS PAGE: B-2 EDITION: METRO
DATELINE: NORFOLK
SOURCE: ASSOCIATED PRESS
The results were depressed by a one-time charge of $49.7 million after taxes for the costs of a $13billion credit line to buy part of Conrail.
Norfolk Southern Corp.'s profit slumped 24 percent in the first quarter as a one-time charge more than offset the impact of broad-based gains in traffic and revenue.
The rail company said Wednesday it earned $127.8 million, or $1.02 per share, in the first quarter compared with $168.1million, or $1.31 per share, in the same period a year ago.
The results were depressed by a one-time charge of $49.7 million after taxes for the costs of a $13 billion credit line to buy part of Conrail.
After its agreement earlier this month to share Conrail with CSX Corp. of Richmond, Norfolk Southern terminated all but $1.65 billion of that credit line.
Without the one-time charge, Norfolk Southern would have earned $177.5 million, or $1.42 per share.
Except for the charge, earnings looked good, said analyst Cornelius Sewell of Argus Research in New York. ``This is about in line with most people's expectations.''
The earnings came on operating revenues of $1.25 billion, up 3 percent from $1.22 billion a year earlier.
``Our solid first-quarter performance in the midst of our intensive effort to achieve balanced rail restructuring in the East is especially gratifying,'' said David Goode, chairman, president and chief executive officer of Norfolk Southern.
``Traffic and revenue gains were broad-based, with increases in every industry group except agriculture,'' Goode said. ``Aside from unusual items, this was the 17th consecutive quarter of year-to-year improvement in earnings per share.''
Norfolk Southern shares climbed 25 cents Wednesday to close at $90 a share on the New York Stock Exchange.
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