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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington , D.C.   20549

 

FORM 10-Q

 

 

(X)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

 

EXCHANGE ACT OF 1934

 

For the quarterly period ended MARCH 31, 2005

 

 

( )

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

 

EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

 

Commission file number 1-8339

 

logo

 

NORFOLK SOUTHERN CORPORATION

(Exact name of registrant as specified in its charter)

 

Virginia

52-1188014

(State or other jurisdiction of

(IRS Employer Identification No.)

incorporation or organization)

 

 

 

 

 

Three Commercial Place

 

Norfolk , Virginia

23510-2191

(Address of principal executive offices)

Zip Code

 

 

Registrant's telephone number, including area code

(757) 629-2680

 

 

No Change

(Former name, former address and former fiscal year,

if changed since last report.)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13

or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter

period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days.  

(X) Yes   

( ) No

 

 

 

Indicate by check mark whether registrant is an accelerated filer (as defined in Rule 12b-2 of The Exchange Act).

 

(X) Yes   

( ) No

 

 

 

The number of shares outstanding of each of the registrant's classes of Common Stock, as of the last

practicable date:

 

 

Class
Outstanding as of March 31, 2005

Common Stock (par value $1.00)

404,274,324 (excluding 20,907,125 shares

 

held by registrant's consolidated subsidiaries)

 


TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

Part I.

Financial information:

 

 

 

 

 

Item 1.

Financial statements:

 

 

 

 

 

 

 

Consolidated Statements of Income

3

 

 

Three Months Ended March 31, 2005 and 2004

 

 

 

 

 

 

Consolidated Balance Sheets

4

 

 

March 31, 2005 and Dec. 31, 2004

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

5

 

 

Three Months Ended March 31, 2005 and 2004

 

 

 

 

 

 

Notes to Consolidated Financial Statements

6

 

 

 

 

 

 

Report of Independent Registered Public Accounting Firm

14

 

 

 

 

 

Item 2.

Management's Discussion and Analysis of

15

 

 

Financial Condition and Results of Operations

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures

22

 

 

About Market Risks

 

 

 

 

 

 

Item 4.

Controls and Procedures

22

 

 

 

 

Part II.

Other Information:

 

 

 

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

22

 

 

 

 

 

Item 6.

Exhibits

23

 

 

 

 

Signatures

 

24

 

 

 

 

Exhibit Index

 

24

 


PART I.   FINANCIAL INFORMATION

 

Item 1.   Financial Statements.

 

 

NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

  (Unaudited)

 

                                                                                                                   

 

Three Months Ended

 

March 31,

 

2005

2004

 

($ in millions except per share amounts)

 

 

 

 

 

Railway operating revenues

 

 

 

 

  Coal

$

467 

$

398 

  General merchandise

 

1,086 

 

967 

  Intermodal

 

408 

 

328 

      Total railway operating revenues

 

1,961 

 

1,693 

 

 

 

 

 

Railway operating expenses

 

 

 

 

  Compensation and benefits

 

604 

 

545 

  Materials, services and rents

 

436 

 

365 

  Conrail rents and services (Note 2)

 

35 

 

102 

  Depreciation (Note 2)

 

193 

 

129 

  Diesel fuel

 

150 

 

107 

  Casualties and other claims (Note 8)

 

78 

 

40 

  Other

 

62 

 

59 

     Total railway operating expenses

 

1,558 

 

1,347 

 

 

 

 

 

        Income from railway operations

 

403 

 

346 

 

 

 

 

 

Other income - net

 

 

10 

Interest expense on debt

 

(128)

 

(121)

 

 

 

 

 

        Income before income taxes

 

 

277 

 

235 

Provision for income taxes

 

83 

 

77 

 

 

 

 

 

 

 

 

 

 

        Net income

$

194 

$

158 

 

 

 

 

 

Per share amounts (Note 6):

 

 

 

 

  Net income

 

 

 

 

      Basic

$

0.48 

$

0.40 

     Diluted

$

0.47 

$

0.40 

 

 

 

 

 

  Dividends

$

0.11 

$

0.08 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

 

 


NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

 

 

March 31,

Dec. 31,

 

2005

2004

 

($ in millions)

Assets

 

 

 

 

Current assets:

 

 

 

 

   Cash and cash equivalents

$

864 

$

467 

   Short-term investments

 

255 

 

202 

   Accounts receivable, net (Note 8)

 

890 

 

767 

   Materials and supplies

 

114 

 

104 

   Deferred income taxes

 

216 

 

187 

   Other current assets

 

256 

 

240 

      Total current assets

 

2,595 

 

1,967 

 

 

 

 

 

Investments (Note 2) <