Bank of America Merrill Lynch Global Transportation Conference May - - PowerPoint PPT Presentation
Bank of America Merrill Lynch Global Transportation Conference May 16, 2013 John P. Rathbone Executive Vice President Finance and Chief Financial Officer 1 Norfolk Southern Update System Overview Technology / Productivity First
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NY / NJ Philadelphia Wilmington Baltimore Morehead City Charleston Savannah Brunswick Jacksonville Norfolk Portsmouth Mobile New Orleans Braithwaite
Cleveland Erie Ashtabula Detroit Toledo Chicago Burns Harbor Granite City, IL Jeffersonville, IN Cincinnati Louisville Naples Portsmouth, OH Pittsburgh Memphis
Camden / South Jersey NS Railway & Ports served by NS Seaports River Ports Lake Ports
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Excludes coke, iron ore & outbound Wheelersburg
Illinois Basin 20.4 M Tons 14% Northern Appalachia 41.1 M Tons 27% Western 26.3 M Tons 18% Central Appalachia 57.6 M Tons 39% Southern Appalachia 3.3 M Tons 2%
Norfolk Southern Railway and its Railroad Operating Subsidiaries
Haulage Rights
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Harrisburg
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Atlanta Charlotte Chicago Columbus Detroit Savannah Miami Cincinnati Harrisburg Norfolk New Orleans Memphis Dallas Jacksonville Charleston Lexington Kansas City St Louis Louisville Baltimore Toledo Cleveland Pittsburgh Ayer Albany Buffalo Titusville NY/NJ Philadelphia Birmingham Meridian Chattanooga
NS Automotive Network and Haulage 26 Assembly Plants Assembly Plants on Short Line connecting with NS
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Shreveport
75-Car Unit Train Receivers
75-Car Unit Train Loaders
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Bakken Alberta
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Atlanta Norfolk Charleston Philadelphia Columbus
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1Q 2012 Mix/Price Fuel Volume 1Q 2013
$2,789 $2,738 ($85) ($51) $85
1Q 2013 Revenue $ in Millions & y-o-y Percent Change Components of Revenue Change $ in Millions
Merchandise $1,530 +2% Coal $635 (17%) Intermodal $573 +9%
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500 1,000 1,500 2,000 1Q 2012 1Q 2013 Coal Merchandise Intermodal (0.5%) +9% (4%) 1,730.8 1,783.6
Coal down (4%) (9%) decline in Utility 21% rise in Export (14%) decline in Domestic Met Intermodal up 9% 7% gain in Domestic and 13% increase in International Merchandise down (0.5%) Decline in MetCon and Agriculture more than offset strength in Chemicals and Automotive
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207.6 77.2 41.8 16.6 50 100 150 200 250 Utility Export Dom Met Ind Drivers
Weak demand results in overall volume decline of (4%) Revenue: $635 Million, down (17%) RPU: $1,850, down (13%)
Utility 61% Export 22% Dom Met 12% Ind 5%
Percent of Total 1Q 2013 Volume Units (000’s) (9%) 21% (14%) (10%) Utility Overall weak demand, Utility South down (16%) and a (3%) decline in Utility North Export Increases in thermal coal and improving metallurgical volumes through Baltimore and Lamberts Point Domestic Met Impact of RG Steel comp and weaker steel production Industrial General market declines and use of higher efficiency equipment
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570.2 286.2 100 200 300 400 500 600 Domestic International
7% 13%
Revenue: $573 Million, up 9% RPU: $669, down (0.3%)
Strong growth in Domestic and International leads to 9% overall volume gain
Domestic 67% Int’l 33%
Units (000’s)
Percent of Total 1Q 2013 Volume
154.8 147.9 106.0 98.7 76.6 50 100 150 200 MetCon Ag Chem Auto Paper
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Drivers MetCon Weaker steel volumes due to RG Steel comp and decline in domestic raw steel production Agriculture Decline in corn volumes to processors and impact of ethanol plant closures Chemicals Growth in crude by rail business Automotive New business from existing customers Paper Rebound in housing related commodities,
(6%) (3%) 10% 2% --
Revenue: $1.5 Billion, up 2% RPU: $2,619, up 3% Strong gains in Chemicals
Units (000’s)
MetCon 27% Ag 25% Chem 18% Auto 17% Paper 13%
Percent of Total 1Q 2013 Volume
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$2,044 $16 $3 $2 $12 $6 $2,047
2013
Fuel Compensation & Benefits Depreciation Purchased Services & Rents
Net Increase $3 / -%
2012 Materials & Other
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2012 2013 2013* $410 $450 $390 *Excluding Michigan land sale gain - please see reconciliation to GAAP posted on our web site. 2012 2013 2013* $1.23 $1.41 $1.22
Change vs. Prior Period: + 10%
Change vs. Prior Period: + 15%
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836.5 851.4 2012 2013 Units (000)
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12% 12% 5% 0% (3%) (4%) (8%) Change in Units 2QTD13 vs. 2012 Chemicals Automotive Intermodal Paper Coal Agriculture MetCon
6,724 8,530 6,191 6,859 8,419 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13
9%
Tons (000)
91% 71% 29% 83% 17% 74% 26% 75% 25%
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demand for electricity, competition from natural gas and higher stockpiles
metallurgical market to support steel production
European market for both met and steam coal
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demand for electricity, competition from natural gas and higher stockpiles
metallurgical market to support steel production
European market for both met and steam coal
for highway conversion
lanes ahead as new corridor terminals open
international shipping partners
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demand for electricity, competition from natural gas and higher stockpiles
metallurgical market to support steel production
European market for both met and steam coal
for highway conversion
lanes ahead as new corridor terminals open
international shipping partners
for shale related liquid petroleum gases
aggregate market
growth despite tougher comps
soybean crop
related construction materials market
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Common Stock Debt Other
Common Stock Debt Other
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* See reconciliation of “Other” to GAAP posted on our website, www.nscorp.com.
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$2,715 $1,860 $2,714 $3,227 $3,065 $1,558 $1,299 $1,470 $2,160 $2,241
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+15% +20% +33% +42% +41% +27% +11% +3% +19% +3%
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$7.5 Billion $3.3 Billion
* See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
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