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| Norfolk Southern Corporation | Volume 3, Issue 6, June 2003 |
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Inside newsbreak: Norfolk Southern employees win 14th consecutive Harriman Award First-quarter 2003 results reported Goode says NS primed to accelerate improvement NS employees honored for environmental, emergency management contributions Call for entries for the 2004 calendar contest NS Exhibit Car to visit 17 locations
NS Newsbreak is published monthly by Norfolk Southern's Public Relations department, Three Commercial Place, Norfolk, Va. 23510-9224.
Editor Questions and story ideas can be delivered to the editor via MEMO ID aljust, e-mail at aljust@nscorp.com, phone 757-823-5205 or fax 757-533-4874. Retirees Employees interested in new personnel appointments, recent retirements, Quality Achievement Awards, 40-year service anniversaries and archived issues of Newsbreak can be found on MEMO bulletin boards Appoints, RETIREMT, QAWARDS, 40YEARS and NEWSBRK, respectively, or on the Web here. |
Norfolk Southern employees win 14th consecutive Harriman AwardNorfolk Southern employees' strong commitment to safety earned a 14th consecutive E.H. Harriman Gold Medal award. In all, 12 railroads with the best employee safety records during 2002 received awards at a luncheon ceremony in Washington, D.C. Gold, silver and bronze medal awards went to companies in three groups of line-haul railroads, and to a fourth group of switching and terminal companies. NS placed first among the group of largest railroads with a 1.20 injury frequency rate per 200,000 employee hours worked. The silver award went to CSX Transportation, and Burlington Northern Santa Fe Railway took the bronze. In accepting the award for NS employees and other winners, Jim Hixon, senior vice president administration, said, "The Harriman awards celebrate the success of our industry in transforming itself from the early days of American railroading and in greatly reducing employee injury rates. "The safety improvements we all have achieved benefit our people, our customers and our communities. The Harriman Institute, in recognizing these efforts, makes a valuable contribution by encouraging us to focus continually on the highest ideals and values of safety. Our goal goes beyond reducing all reportable injuries. Our goal is to eliminate all injuries, whether reportable or not. We strive for nothing less." The annual rail employee safety awards were founded in 1913 by the late Mrs. Mary W. Harriman in memory of her husband, Edward H. Harriman, a pioneer in American railroading. Awards are granted to railroads on the basis of the lowest casualty rates per 200,000 employee-hours worked, with a formula that takes into account the volume of work performed, and the number of fatalities, injuries and occupational illnesses, all documented and confirmed by the Federal Railroad Administration. Winners are chosen by a committee of individuals in the transportation field. For many years, the program was sponsored by two sons, E. Roland Harriman and the Hon. W. Averell Harriman, both now deceased. The awards are administered under the auspices of the E.H. Harriman Memorial Awards Institute, with support from the Mary W. Harriman Foundation.
First-quarter 2003 results reportedNorfolk Southern reported first-quarter income from continuing operations, before required accounting changes, of $85 million, or $0.22 per diluted share, compared to $86 million, or $0.22 per diluted share, for the same period a year earlier. First-quarter net income was $209 million, or $0.54 per diluted share, and included a $114 million, or $0.29 per diluted share, gain largely due to a required change in accounting for the cost of removing railroad crossties, and a $10 million, or $0.03 per diluted share, gain from discontinued operations resulting from the 1998 sale of a former motor carrier subsidiary. Railroad operating revenues during the first quarter were $1.56 billion, 4 percent higher than first-quarter 2002, while carloads rose 3 percent compared to the same period in 2002. General merchandise revenues of $918 million also set a first-quarter record, climbing 6 percent compared to the same period a year earlier. All general merchandise commodity groups exceeded first-quarter 2002 results. Automotive revenues of $242 million surpassed first-quarter 2002 results by 6 percent, while carloads increased 2 percent over the similar period last year. Agricultural revenues increased $12 million, or 8 percent, and were the highest for any quarter. Intermodal revenues during the first quarter increased 7 percent to $289 million compared to the same period of 2002, primarily as a result of strong international business. Container volume increased by more than 31,000 units, or 8 percent, while container revenues climbed 12 percent compared to the same period a year earlier. First-quarter coal revenues declined 1 percent to $354 million, compared to the same period a year earlier, largely as a result of decreased demand for industrial and metallurgical coal. Railway operating expenses were $1.33 billion for the quarter, a 5 percent increase compared to the first quarter of 2002. The increase was largely due to higher diesel fuel prices and severe winter weather conditions in Norfolk Southern's operating territory. For the quarter, the railway operating ratio, the percentage of revenues required to operate the railroad, was 85.2 percent compared to 84.2 percent a year earlier. Goode says NS primed to accelerate improvementNorfolk Southern has made steady strides in safety, service, operations and shareholder value and is eager to accelerate the pace of improvement, David Goode, chairman, president and chief executive officer, told the company's shareholders at their 21st annual meeting. "Having demonstrated the strength of our company to succeed during difficult times, the Thoroughbred is champing at the bit to stretch to our full potential," Goode said. Goode also said the company is "pledged to honesty and integrity in governing our corporate affairs. We recognize the importance of sound corporate governance principles. They always have been a hallmark of Norfolk Southern, and we know that is important to you as shareholders." Goode recognized Jim Bistline, retired general counsel for Southern Railway and general manager steam for NS, for his attendance at more than 50 annual meetings beginning in 1948. In official business, stockholders re-elected three directors: Goode; Steven F. Leer, president and chief executive officer of Arch Coal Inc.; and Harold W. Pote, regional banking group executive of J.P. Morgan Chase & Co. Stockholders ratified the appointment of KPMG LLP as auditors and did not approve a stockholder proposal recommending declassification of the NS board of directors. The full text of Goode's remarks is on the NS Web site at www.nscorp.com. NS employees honored for environmental, emergency management contributionsContributions to environmental protection and community safety efforts brought honors to four Norfolk Southern employees. Electrician Rob Leonard was recognized by the Association of American Railroads for his work at the Enola Diesel Shop Waste Water Treatment Plant and the Harrisburg mainline fuel pad oil/water separator during the John H. Chafee Environmental Excellence Awards. The awards are given to railroad employees who demonstrate leadership and commitment to the environment reflected in the work and legacy of the late Sen. John H. Chaffee. Due to Leonard's work, no water discharge violations have occurred from wastewater released into the environmentally sensitive Susquehanna River for the past three years. Leonard's co-workers also honored him with a plaque for his achievements. A career-long commitment to the safe transportation of hazardous materials earned Tim Mannas, assistant manager hazardous materials, the Association of American Railroads' Holden/Proefrock Award. The award is given to an individual in the railroad industry who has made significant contributions over the course of his career to the safe transportation of hazardous materials. It is named for Roy Holden and Art Proefrock, who were pioneers in tank car damage assessment. Mannas is NS' first recipient. Mike Stiner, assistant manager hazardous materials, and Joe Oliver, engineer environmental operations, received certificates of appreciation from the Tennessee Emergency Management Agency for their support of the agency's eastern region through training. NS also was cited by the agency for its support. The agency said to Stiner and Oliver, "Your leadership and commitment has been invaluable to our hazardous material training program and symbolizes the spirit between Norfolk Southern and the Tennessee Emergency Management Agency." Diversity Council reaches outNorfolk Southern's Diversity Council began its outreach campaign in Birmingham in late April. The group's goal is to help NS employees better understand the value of a more inclusive work force to the company's success. "Our work force is changing and the work force of the future is more diverse than ever," said Alphonso Tabb, manager diversity. "Having a more inclusive work force helps us all understand the value of each person's experience and expertise and the direct relationship of diversity to our company's success." Nine council members spent two and a half days making presentations to groups and conducting walk-around sessions in which employees had the opportunity to talk one-on-one. "People were very receptive to the presenters and their information," said Fran Brooks, casualty claims clerk, who attended a group presentation. "The more we know, the more we can work together to be successful." "One important message we heard was the appreciation for listening to concerns and ideas and creating dialogue," said Peggy Scholzen, labor relations officer and council member. "We were welcomed warmly whether it was a group presentation or one-on-one." J.C. Holland, council member and locomotive engineer, found the same enthusiasm in his presentations and walk around sessions. "People are very optimistic about NS' diversity process. This was a very effective way to reach people to not only talk about diversity but listen to their ideas too. We appreciated the feedback," he said. "One very important idea that we came away with is that respect is free and we should use it generously," said Mike Robinson, communications and signals supervisor, who attended a group session with others from the C&S department. Richard Watkins, electrician mechanical, attended one of the group sessions and said he appreciated the opportunity to hear more about NS' diversity process. "These presentations reminded us that everyone has different experiences and ideas, and each is a part of our success." "We intend to do more of this," Tabb said. "People want to know more. They want to be involved, and they want to be heard." Council members also participated in division safety awards meetings in Greenville, S.C., and Decatur, Ill., and conducted walk-around sessions at those locations. Council members will continue their outreach efforts throughout the year. Call for entries for the 2004 calendar contestIt's time to submit photos for the 10th annual Norfolk Southern calendar contest. Photographers will collect $350 and 50 calendars for a winning shot. Winners' names and photos will appear on some 100,000 calendars. The contest is open to active employees of NS and its subsidiaries. Entries can be submitted in horizontal slides, digital and larger format transparencies. Employees may submit five photos. Digital images must be taken with a four megapixel or higher camera. Use the setting for the highest quality, and save the file as a TIFF image uncompressed. Submit the image on a CD labeled with entrant's name, location and telephone number. Do not e-mail images. Please include a "Read Me" text file or Word file that describes the photo and gives photographer information. For a 35mm print, send in the negative strip along with a 4-by-6 inch print for judging. Judges from various departments will evaluate entries for seasonal variety, content, creativity, image quality and commodity representation. To enter, send your images to the address below along with your name, title, home address and telephone numbers where you can be reached. Please include an e-mail address if available. It is important to include the location, date and subject featured in each entry. Winning entries become the property of NS and will not be returned; however, duplicates will be provided. NS will not be responsible for loss or damage to images. Deadline for entry is Aug. 1, 2003. For questions regarding the contest, contact Rhonda Broom, manager advertising and promotions, at 757-629-2706. For technical photography questions, contact Michael Bickham, imaging manager, at 757-629-2303. 2004 Calendar Contest NS Exhibit Car to visit 17 locationsNorfolk Southern's Exhibit Car is scheduled to visit 17 locations on the company's rail system this year. The Exhibit Car is a rebuilt passenger rail car with displays depicting the history and modern operation of the NS transportation system. A locomotive simulator, the car's most popular display, puts guests in the engineer's seat in control of throttle, brake and horn. Some 1.5 million people in more than 340 cities have viewed the traveling showcase since 1971. The car began its 33rd year of service May 9-11 at the landmark Chattanooga Choo Choo for a regional convention of the National Model Railroad Association. It since appeared at Crewe, Va., Aurora, N.C., and Manassas, Va. Remaining visits are as follows:
NS provides the Exhibit Car at no cost for community events throughout its rail transportation network. Requests for the car for 2004 can be made through the Norfolk Southern Web site at www.nscorp.com. Click on "about Norfolk Southern," then "Exhibit Car" under the "Miscellaneous" column. Goode addresses ODU graduates, receives honorary degreeMaintaining a strong sense of professional and personal ethics is "the lesson of our time," David Goode, chairman, president and chief executive officer, told graduates of Old Dominion University. "The people with honesty and integrity are the ones destined to lead the way," Goode said in a commencement address May 10. "The organizations dedicated to operating on responsible principles of ethics and accountability and governance are the ones that last. Seek them out and add your strength to theirs. "The events of the last few years show we need that moral commitment from today's graduates for our system to work," Goode said. Recipient of an honorary doctorate of humane letters, Goode also urged graduates to "contribute something that is enduring in the community." Norfolk Southern, he said, "supports a creed that cares not just for self, but for customers, fellow workers and the communities we live and work in. "I'm proud of our financial and corporate accomplishments," Goode said. "But I'm far prouder that we have a tradition and a reputation for fair dealing, for trying hard to do the right things." The full text of Goode's remarks is available here. |
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