Norfolk Southern Corp. (BBB/Stable/A-2) today reported second-quarter 2002 net income of $119 million, an 11% increase over the $107 million generated in the second quarter of 2001. Railroad revenues were $1.6 billion, relatively unchanged from the second-quarter 2001 level. Standard&Poor's Ratings Services said the announcement had no impact on its ratings or outlook on the railroad. Although revenues in the important coal segment were below year-earlier levels, strength in the intermodal and merchandise segments helped offset the coal decline. During the quarter, Norfolk Southern reported declines in most major expense categories, which helped the company improve its operating ratio (operating expenses, including depreciation, as a percentage of revenues) to 79.8%, the best level since the Conrail integration in
