Description of Business
Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 19,500 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern is a major transporter of industrial products, including chemicals, agriculture, and metals and construction materials. In addition, the railroad operates the most extensive intermodal network in the East and is a principal carrier of coal, automobiles, and automotive parts.
Board of Directors
Thomas D. Bell Jr
Daniel A. Carp
Mitchell E. Daniels Jr.
Marcela E. Donadio
Thomas C. "Colm" Kelleher
Steven F. Leer
Michael D. Lockhart
Amy E. Miles
Jennifer F. Scanlon
James A. Squires
John R. Thompson
Senior Officers
James A. Squires
Chairman, President, and Chief Executive Officer
Ann A. Adams
Executive Vice President and Chief Transformation Officer
Cindy C. Earhart
Executive Vice President Finance and Chief Financial Officer
John M. Scheib
Executive Vice President and Chief Strategy Officer
Alan H. Shaw
Executive Vice President and Chief Marketing Officer
Michael J. Wheeler
Executive Vice President and Chief Operating Officer
Vanessa Allen Sutherland
Senior Vice President and Chief Legal Officer
Facilities Served
| General warehouses/distribution centers | 402 |
| Active coal-loading facilities | 116 |
| Bulk transfer facilities | 116 |
| Power generation plants served | 78 |
| Paper mills | 66 |
| Steel mills and processing facilities | 57 |
| Metals distribution centers | 64 |
| Lumber reload centers | 58 |
| Panel mills | 16 |
| Lumber mills | 33 |
| Intermodal terminals | 53 |
| Paper distribution centers | 34 |
| Auto distribution facilities | 26 |
| Coal and iron ore transload facilities | 35 |
| Auto assembly plants | 27 |
| Triple Crown Service terminals | 2 |
| Vehicle service centers | 4 |
| Just-in-time rail auto parts center | 3 |
| Thoroughbred bulk transfer facilities | 32 |
Norfolk Southern serves every major port on the East Coast between New York City and Jacksonville, Fla., and multiple private terminals; the Gulf ports of Mobile, Ala., New Orleans and St. Bernard; Great Lakes ports; and numerous river ports.
Major Rail Classification Yards
Allentown, Pa.
Atlanta, Ga.
Baltimore, Md.
Bellevue, Ohio
Birmingham, Ala.
Buffalo, N.Y.
Chattanooga, Tenn.
Chicago, Ill.
Cincinnati, Ohio
Cleveland, Ohio
Columbus, Ohio
Conway, Pa.
Decatur, Ill.
Detroit, Mich.
Enola, Pa.
Elkhart, Ind.
Fort Wayne, Ind.
Harrisburg, Pa.
Kansas City. Mo.
Knoxville, Tenn.
Linwood, N.C.
Louisville, Ky.
Macon, Ga.
New Orleans, La.
Norfolk, Va.
Sheffield, Ala.
St. Louis, Mo.
Toledo, Ohio
Locomotive Shops
Juniata, Altoona, Pa.
Bellevue, Ohio
Chattanooga, Tenn.
Conway, Pa.
Enola, Pa.
Roanoke, Va.
Elkhart, Ind.
Shaffers Crossing, Roanoke, Va.
Other Major Installations
Atlanta, Ga.
Operations and Service Support Center
Crew Management Center
Northern and Southern Regions’ operations offices
National Customer Service Center
Police Communications Center (800) 453-2530
McDonough, Ga.
Norfolk Southern Training Center
Norfolk, Va.
Lamberts Point coal transload facility
Plant and Equipment
| Miles of road operated | 19,420 |
| Track miles operated | 35,618 |
| Locomotives owned and leased | 4,197 |
| Freight cars owned and leased | 61,495 |
2018 Principal Operating Revenue Sources
| Intermodal | 25% |
| Coal, coke, and iron ore | 16% |
| Chemicals | 16% |
| Agriculture, fertilizer, consumer products, and government | 14% |
| Metals and construction | 13% |
| Automotive | 9% |
| Paper, clay, and forest products | 7% |
2018 Traffic Highlights
| Rail revenue ton miles | 207 billion |
| Rail shipments (including trailers and containers) | 7.928 million units |
2018 Industrial Developments
| New industries on NS lines | 72 |
| Expansions of existing industries | 18 |
| Total investment by industries | $1.5 billion |
| Jobs created in NS service area | 3,000 |
2018 AVERAGE NUMBER OF EMPLOYEES 26,662
2018 Financial Highlights (in millions except per share amounts and operating ratio)
Financial Results
| Railway operating revenues | $11,458 |
| Income from railway operations¹ | $3,959 |
| Railway operating ratio¹ | 65.4% |
| Net income¹ | $2,666 |
| Earnings per share-diluted¹ | $ 9.51 |
¹ See 2018 Annual Report for information on how the Tax Cuts and Jobs Act of 2017 affected Norfolk Southern’s 2018 financial statements.
Financial Position (in millions, except per share amount)
| Total assets | $36,239 |
| Total debt | $11,145 |
| Stockholders’ equity | $15,362 |
| Debt to total capitalization ratio | 42% |
| Stockholders’ equity per share | $57.30 |
Other Information
| Year-end stock price | $149.54 |
| Dividends per share | $3.04 |
| Price/earnings ratio at year end | 15.7 |
| Number of shareholders at year end | 24,475 |
| Shares outstanding at year end | 268,100,000 |
