Norfolk Southern first-quarter revenue falls on winter storms, lower fuel surcharges

U.S. railroad operator Norfolk Southern reported a fall in its first-quarter revenue on Wednesday, due to lower fuel surcharges and impact from winter storms, and reaffirmed its annual forecast.

Adverse weather conditions, including winter storms, have disrupted railroad operators during the quarter, resulting in higher dwell time, which is the duration a train has remained stationary, and lower speeds.

Total revenue for the quarter was $2.99 billion, compared with $3 billion a year earlier.

Excluding fuel surcharges, the company reported operating revenue of $2.79 billion for the quarter, up 1.71% from a year earlier.

Fuel surcharges are added fees the company collects from customers to account for fluctuations in the price of fuel used to operate trains.

Norfolk reported an adjusted operating ratio, a key profitability metric, of 67.9%, a 200-basis-point improvement from a year earlier.

The company reported an adjusted profit of $2.69 per share for the reported quarter, compared with $2.49 a year earlier.