Norfolk Southern 2Q profit rises 15 percent

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.