(Reuters) -U.S. railroad operator Norfolk Southern posted a rise in third-quarter profit on Thursday, in its first earnings report after announcing an $85 billion deal to form the nation’s first coast-to-coast freight rail operator with Union Pacific.
The deal, which drew a positive response from U.S. President Donald Trump, is still subject to regulatory clearance from the Surface Transportation Board.
Earlier on Thursday, Union Pacific topped Wall Street’s profit estimates on strong coal volumes. Last week, peer CSX beat Wall Street quarterly estimates on improving intermodal volumes and higher pricing in its merchandise segment, which helped offset lower coal prices.
Union Pacific said it expects to file a merger application with the STB by the end of November or early December this year, instead of January-end. The review could take about 12 to 18 months.
Atlanta, Georgia-based Norfolk reported an adjusted profit of $3.30 per share for the reported quarter, compared with $3.25 a year earlier.
Its total operating revenue for the quarter rose 2% to $3.1 billion, compared with last year.
On an adjusted basis, the company’s operating ratio — a key metric for efficiency — was 63.3% for the quarter, a 10-basis-point improvement from the same period last year.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Alan Barona)
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