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Norfolk Southern reports a rise in its quarterly profit due to cost control

Norfolk Southern announced a higher profit for the fourth quarter on Thursday due to cost control. This was despite uneven freight demand, and a persistent macroeconomic stress.

The results come after the U.S. Surface?Transportation?Board earlier this month returned Union Pacific's $85 billion merger proposal with the company to be revised.

Surface Transportation Board has deemed Union Pacific's December merger application incomplete. However, Jim Vena, the CEO of Union Pacific, said that the request was routine and the deal is still on schedule to close in the first half of 2027.

Norfolk stated in October that it anticipated future top-line fluctuations due to "competitor reaction"?to the merger proposal, which had already caused a 2% drop in third-quarter intermodal volume. Intermodal shipping is the combination of two or more modes of transport for goods.

Mark George, the CEO of Norfolk, said that the company saved over $215 million in the fourth quarter. This was primarily due to productivity gains.

He added that "as we approach 2026, demand remains uncertain."

Revenues from railway?operations? for the fourth quarter dropped 2%, to $3 billion?, compared with a year ago. Volumes on the railways fell 4% compared to a year earlier.

Norfolk, an Atlanta-based company, reported a profit adjusted of $3.22 per share, compared to $3.04 a year ago.

The company's operating rate, which is a key measure for efficiency, was 65.3% on a?adjusted basis. This represents a 40-basis point decline from the same period a year ago. Apratim Sarkar, Maju Samuel and Apratim Sakar contributed to this report.

(source: Reuters)