Company News

BUZZ-Norfolk Southern: Stock jumps on new profitability target

** Norfolk Southern shares chug 3.7 pct higher on the railroad’s 2019 operating ratio targets

** NSC expects 2019 operating ratio to be at least 100 basis pts below 2018’s 65.4 pct and targets an operating ratio of 60 pct by 2021

** Operating ratio measures operating costs as a percentage of revenue; a lower ratio shows higher efficiency, profitability

** Other railroads also rise: CSX, Union Pacific and Kansas City Southern up 1-1.5 pct

** Canadian peers CP Railway and CN Rail up 0.8 pct and 0.4 pct, respectively

** Railroads, including NSC, recently posted upbeat results

** NSC now up ~11 pct YTD, 2nd highest gainer among peers; highest is UNP’s ~16.5 pct jump, while KSU and CNR are down 3.5-4.6 pct (Reporting by Savio D’Souza)