In its three major income groups, Norfolk Southern (NS) enjoyed growth that it attributes to greater traffic volumes coupled with its fuel surcharges. Only intermodal income showed a decline for the quarter. It was down 5% in the fourth quarter due to a 3% lessening of demand. For the year, however, intermodal revenues were $2.0 billion, which was 8% greater than 2005.
Revenues for general merchandise grew 2% in the quarter to $1.2 billion, a record, and were up 11% to $5.1 billion for the year. The one commodity group that shipped less during 2006 was the automotive sector. Record income levels for the quarter and year were set by coal, that rose 13% to $592 million for the quarter, and were up 10% for the year to $2.3 billion.
NS operates on 21,000 route miles in 22 states, D.C. and Ontario, Canada. It operates an extensive intermodal network in the eastern part of the country and is North America’s largest rail carrier of metals and automotives.