THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, May 12, 1995 TAG: 9505120444
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: BY GREG EDWARDS, LANDMARK NEWS SERVICE
LENGTH: Medium: 54 lines
With mergers and rumors of mergers rampant within the railroad industry over the last several months, it was inevitable that shareholders would ask Norfolk Southern Corp.'s executives Thursday about their discussions with Conrail.
David R. Goode, Norfolk Southern's chief executive, responded that Conrail has made it clear that it wants to remain independent. He said, however, that Norfolk Southern will continue working cooperatively with Conrail on such things as the recently expanded intermodal service between Atlanta and New York.
A drive along Interstate 81 or Interstate 95, both of which are filled with truck traffic, signals the potential for a lot more freight business for the railroads, Goode said.
``We can do all the motorists of the East a favor and take as much of that freight off those corridors as we can,'' he said.
Asked about potential mergers after Thursday shareholder meeting, Arnold McKinnon, a current board member, said merger opportunities have to be judged on their merits as they arise.
``You do the best you can internally and if these other things happen, they happen,'' said McKinnon, Goode's predecessor as Norfolk Southern chairman.
Bill Hargrove, a shareholder from Milledgeville, Ga., asked Goode about the potential for Norfolk Southern resuming passenger service. Goode responded that Norfolk Southern will cooperate with Amtrak in providing passenger service when it doesn't interfere with the railroad's prime mission as a freight hauler.
Thursday's meeting drew 960 people, many from the Roanoke area. They were regaled with news of the company's strong financial performance.
``In 1994, we achieved new levels of safety, productivity, efficiency, traffic volume and revenues,'' Goode said. ``It was our first billion-dollar operating income year.''
In January, Norfolk Southern reported record net income of $667.8 million in 1994 and record earnings per share of $4.90 when tax and accounting changes that produced a windfall in 1993 were discounted.
Other points that Goode made during his speech to stockholders included:
Norfolk Southern achieved record results last year despite a disappointing year for its export coal business, which illustrates the company has been successful in its efforts to diversify.
The company is forecasting slower national economic growth for the last half of the year, but expects to better last year's record results because of efforts to improve productivity and revenue growth. by CNB