first quarter 2012 results - norfolk southern railway · 2020-07-14 · first quarter 2012 vs....

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First Quarter 2012 Results

Donald W. SealeExecutive Vice Presidentand Chief Marketing Officer

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Revenue$2.8 Billion, up 6%

RPU$1,611, up 5%

Volume1,730,800 units, up 1%

1Q 2011 RPU Volume 1Q 2012

$2,620$2,789$139 $30

1Q 2012 Revenue $ in Millions & y-o-y Percent Change

Components of Revenue Growth $ in Millions

Railway Operating RevenueFirst Quarter 2012 vs. 2011

Merchandise$1,496+13%

Coal$766(6%)

Intermodal$527+9%

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First Quarter RPU

vs. 2011 Abs.

vs. 2011% Chg.

Agriculture $2,429 $172 8%

MetCon $2,068 $258 14%

Paper $2,552 $249 11%

Chemicals $3,772 $240 7%

Automotive $2,345 $87 4%

Merchandise $2,549 $185 8%

Intermodal $671 $22 3%

Coal $2,134 $125 6%

Total $1,611 $80 5%

Revenue Per UnitFirst Quarter 2012 vs. 2011

1Q 2012 Volume (000’s) & y-o-y Percent Change

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0

500

1,000

1,500

2,000

1Q 2011 1Q 2012

Coal

Merchandise

Intermodal

+5%

+5%

(12%)

1,711.2 1,730.8Coal volume down (12%)

(17%) decline in Utility 19% gain in Domestic Met(10%) decline in Export

Intermodal volume up 5% 13% gain in Domestic more than offsets (3%) decline in International

Merchandise up 5% Automotive and MetCon gains more than offset declines in Agriculture and Paper

+19,600 units, or 1%

Railway Volume First Quarter 2012 vs. 2011

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Revenue$766 Million, down (6%)

RPU$2,134, up 6%

Volume359,000 units, down (12%)

Crews and Locomotives Down in line with volume decline

Coal ComparisonsFirst Quarter 2012 vs. 2011

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Utility228.3(17%)

Export63.7

(10%)

Met48.7

+19%

Industrial18.3 +3%

Utility Reduced electric demand from mild temperatures & competition from gas

Domestic Met Continued domestic demand for steel and greater coking availability during the quarter

ExportLamberts Point down (9%) Baltimore down (15%)New export steam coal

Industrial New business

Volume of 359,000 units, down (12%) 1Q 2012 Volume (000’s) & y-o-y Percent Change

Coal MarketFirst Quarter 2012 vs. 2011

0

200

400

600

800

1,000

1,200

Jan-12 Feb-12 Mar-12

Heating Degree Days by Month

ActualLast yearNormal

Source: NOAA: Average heating degree days within NS region

Utility CoalHeating Degree Days in NS Region First Quarter 2012 vs. 2011

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1Q 2012 Heating Degree Days down (27%) vs. 2011

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Utility228.3(17%)

Export63.7

(10%)

Met48.7

+19%

Industrial18.3 +3%

Utility Reduced electric demand from mild temperatures & competition from gas

Domestic Met Continued domestic demand for steel and greater coking availability during the quarter

ExportLamberts Point down (9%) Baltimore down (15%)New export steam coal

Industrial New business

Volume of 359,000 units, down (12%) 1Q 2012 Volume (000’s) & y-o-y Percent Change

Coal MarketFirst Quarter 2012 vs. 2011

Coal Market

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Utility Utility North Utility South Export Domestic Met

Relative Length of Haul in Coal Market Segments

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Revenue$527 Million, up 9%

RPU $671, up 3%

Volume785,000 units, up 5%

Intermodal ComparisonsFirst Quarter 2012 vs. 2011

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Domestic Continued highway conversionsTightening truck capacity

International Negative comp partially offset by favorable imports and exports

Triple CrownIncreased demand for truckload services

Volume of 785,000 units, up 5% 1Q 2012 Volume (000’s) & y-o-y Percent Change

Domestic390.6+13%

International252.7(3%)

Premium64.4

--

Triple Crown77.3 4%

Intermodal MarketFirst Quarter 2012 vs. 2011

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Intermodal MarketImproved Efficiency

Volume

Crew Starts

+5%0

25

50

75

100

1Q 2011 1Q 2012

77%

Percent of Domestic Containers on Stack Cars

86%

+2%

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Revenue$1.5 Billion, up 13%

RPU$2,549, up 8%

Volume586,800 units, up 5%

Merchandise ComparisonsFirst Quarter 2012 vs. 2011

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Automotive Increased light vehicle production and new business

MetCon Increased domestic steel production and strong demand in materials for natural gas drilling

ChemicalsGrowth in plastics and crude oil offset declines in rock salt

Agriculture Negative fertilizer comp effect partially offset by increased ethanol

Paper Weaker volumes for newsprint, pulp and pulpboard with gains in lumber

Volume of 586,800 units, up 5% 1Q 2012 Volume (000’s) & y-o-y Percent Change

Agriculture152.3(2%)

MetCon165.5+12%

Chemicals96.0

--

Paper76.7(4%)

Automotive96.3

+23%

Merchandise MarketFirst Quarter 2012 vs. 2011

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CoalImpact of mild temperatures and competition from natural gasContinued strength within the domestic metallurgical market due to robust domestic demand for steel Weaker demand in European market, partially offset by new steam coal opportunities Improving world met coal prices and tighter supply

IntermodalIncreasing opportunities for highway conversion amidst tightening truck capacity Favorable international trade patternsGrowth in premium

MerchandiseProject growth in crude oil and waste products

Growth in ethanol to terminals

Increasing demand for materials in natural gas drilling operations

Stronger steel/automotive production and new business gains

Business Outlook

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