Weak Coal, Strong Dollar Impact Norfolk Southern Profit

U.S. railroad Norfolk Southern Corp on Wednesday reported a lower net profit, sparked by a drop in coal volumes as utilities burned more lower-cost natural gas and U.S. exporters were hurt by the strong dollar.

The fourth-largest U.S. railroad said that severe winter weather on the East Coast had hurt results.

Norfolk Southern's coal-related revenue fell 16 percent to $455 million from $541 million a year earlier.

"While the market uncertainties remain, the resources that we are deploying are driving improved network performance, and we expect our service levels will be significantly higher in the second half," chief executive Wick Moorman said in a statement.

The Norfolk, Virginia-based company reported a first-quarter net profit of $310 million or $1.00 per share, down 16 percent from $368 million or $1.17 per share or it reported a year earlier.

Analysts had expected earnings per share of $1.00.

Revenue at the railroad fell to $2.6 billion from $2.7 billion a year earlier. Analysts had expected revenue of $2.61 billion.

Reporting By Nick Carey