NEW YORK (Standard&Poor's) July 23, 2003--Norfolk Southern Corp. (BBB/Stable/A-2) today reported record quarterly railway operating revenues of $1.63 billion for the second quarter of 2003, but a decline in railway operating income. Standard&Poor's Ratings Services said that the announcement does not affect its ratings or outlook on the company. The 3% year-over-year increase in revenues in the quarter was more than offset by a 5% year-over-year increase in railway operating expenses, with higher compensation and benefits accounting for more than half of the increase. The operating ratio (operating expenses, including depreciation, as a percentage of revenues) was 81.8% for the quarter, somewhat worse than 79.8% in the second quarter of 2002. Management stated that it has
