Norfolk Southern Corp.’s second-quarter profit fell 46% as the railroad hauled 26% less freight because of the coronavirus outbreak’s impact on the economy.
The railroad said Wednesday that it earned $392 million, or $1.53 per share, during the quarter. That’s down from $722 million, or $2.70 per share, a year ago.
The results beat Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.39 per share.
The railroad handled significantly less freight as most automotive plants were shut down for much of the quarter and other manufacturers produced less as officials imposed restrictions in response to the virus. In addition, coal volume fell 57% as utilities continued to switch away from the fuel.
“Our customers in virtually every segment shipped significantly lower volumes,” Norfolk Southern CEO Jim Squires said. “The automotive industry was particularly volatile – experiencing a rapid and almost total shutdown and then a subsequent restart and push to restock inventory all within the same quarter.”