Norfolk Southern’s 4Q Profit Improves

Norfolk Southern Corp.’s fourth-quarter and annual net income rose from the same periods a year earlier and it said it was boosting its quarterly dividend.

The Eastern freight railroad earned $402 million, or $1.09 per share, in the fourth quarter, up from $307 million, or 82 cents, a year earlier. Railway operating revenue rose 14% to $2.4 billion.

Net income for the full year was $1.5 billion, or $4 per share, up from $1 billion, or $2.76, in 2009. Railway operating revenue increased 19% to $9.5 billion.

Fourth-quarter intermodal revenue rose 16% to $471 million and for the year rose 17% to $1.8 billion. Intermodal traffic rose 13% in the quarter and 16% for the full year.

General merchandise revenue rose 10% to $1.2 billion for the quarter and 20% to $5 billion for the year. General merchandise traffic rose 3% in the quarter and 14% for the year.

The railroad also said it was rasing its raised its quarterly dividend by 11% to 40 cents a share, from 36 cents. The dividend will be paid on March 10 to shareholders of record as of Feb. 4.