Norfolk Southern’s Q3 2016 Earnings Preview: Lower Shipment Volumes And Fuel Surcharge Revenue To Adversely Impact Results
We expect a decline in revenue, stemming from lower shipments and fuel surcharge revenue, to adversely impact Norfolk Southern’s Q3 earnings. The decline in Norfolk Southern’s Q3 shipments was largely driven by a sharp decline in coal shipments, with low natural gas prices adversely impacting the demand for coal by utilities. Aside from the decline in shipment volumes, lower fuel surcharge revenue, as a result of a decline in crude oil and on-highway diesel prices, will add to the decline in the company’s top line. However, Norfolk Southern’s cost reduction initiatives and lower volume-related operating expenses, particularly fuel-related expenses, will partially offset the impact of the decline in revenue on earnings.
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Have more questions about Norfolk Southern? See the links below.
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