The Virginia-based railroader is one the nation’s largest coal rail haulers, operating about 20,000 route miles in 22 US states and the District of Columbia.

For the March quarter, NS recorded a 25% year-on-year rise in net income to $US410 million from $325 million, while operating revenues rose 6% to $2.8 billion.

Income from railway operations totaled $745 million, a 24% improvement over 2011.

NS said while general merchandise revenues were up 13% in the March quarter to $1.5 billion and intermodal revenues rose 9% to $527 million, coal revenues fell 6% to $766 million.

Also on the downside, the rail shipper had a 1% year-on-year increase in operating expenses.

The $2 billion total was primarily due to higher fuel prices, compensation costs and materials expenses.

Norfolk Southern chief executive Wick Moorman said the company achieved first-quarter highs in revenues, operating income, net income, and earnings per share.

“The benefits of our steady focus on service and operating efficiency are reflected in our results and we continue to position our franchise for sustained growth through strategic investments in infrastructure,” he said.