Norfolk Southern posts record First Quarter revenues

April 26 , 2006

Norfolk Southern Reports Record Revenues; Net Income Increases 57
Percent

For first-quarter 2006 vs. first-quarter 2005:

  • Railway operating revenues of $2.3 billion were the highest of
    any quarter in Norfolk Southern’s history.

  • Income from railway operations climbed 37 percent to $551 million
    and set a first-quarter record.

  • Net income increased 57 percent to $305 million,or $0.72 per
    diluted share.

  • The railway operating ratio improved 3.3 percentage points to
    76.1 percent.

NORFOLK, VA – Norfolk Southern Corporation (NYSE: NSC) today reported
first-quarter net income of $305 million, or $0.72 per diluted share,
an increase of 57 percent compared with $194 million, or $0.47 per
diluted share, for the first quarter of 2005.

“Continued strong demand for rail service allowed us to produce a
substantial improvement over the prior year,” said Wick Moorman,
Norfolk Southern’s chief executive officer. “From our vantage point,
demand for rail transportation remains healthy, and our first-quarter
results reflect solid execution throughout the enterprise. I’m even
more encouraged that we were able to achieve our lowest first-quarter
operating ratio since the Conrail transaction and report continuing
substantial volume growth in conjunction with our improved earnings.”

Railway operating revenues of $2.3 billion were the highest of any
quarter in Norfolk Southern’s history and improved 17 percent compared
with $1.96 billion in the first quarter of 2005.

General merchandise revenues were a record $1.28 billion, an increase
of 18 percent compared with the same period a year earlier. The gains
were due primarily to higher average revenues and a 3 percent increase
in traffic volumes. Each of the major business groups reported revenue