Railroad Norfolk Southern Corp. said Tuesday its second-quarter profit rose 15 percent as higher revenue per shipment offset a 2 percent decline in traffic.
The rail operator said it earned $453 million, or $1.18 per share, for the quarter that ended June 30, up from $394 million, or 98 cents per share, during the same period last year. Revenue rose 16 percent to $2.77 billion, from $2.38 billion a year ago.
Analysts surveyed by Thomson Financial expected profit of $1.05 per share on revenue of $2.65 billion.
Weakness in the automotive and housing industries contributed to the traffic decline. But other categories of freight boomed _ general merchandise revenue rose 10 percent from the year-ago period to $1.5 billion; coal revenue climbed 34 percent to $775 million, and intermodal revenue rose 11 percent to $532 million.
Based in Norfolk, Va., Norfolk Southern operates in 22 states, the District of Columbia and Ontario, Canada. Norfolk Southern shares rose $2.15, or 3.4 percent, to close at $65.69 before the results were released. In aftermarket trading, they rose another $1.01 to $66.70.
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