Coal revenues grew 7% to $672 million in the second quarter, compared with the same period of 2013.

Volume was up 3% due to increased demand for utility coal run-of-mine stockpile replenishment in response to a severe winter and higher natural gas prices, which offset lower export volumes.

Norfolk reported net income of $US562 million ($A595 million), 21% up on the $465 million recorded in the previous corresponding period.

Diluted earnings per share jumped 23% to a record $1.79, compared with $1.46 a share in the second quarter of 2013.

The railway operating ratio – operating expenses as a percentage of revenue – improved 5% to 66.5%.

Second quarter railway operating revenues increased to a record $3 billion, 9% higher than the previous corresponding period thanks to an 8% increase in overall cargo volumes.

Norfolk CEO Wick Moorman said the company delivered excellent financial performance during the second quarter, reporting the highest railway operating revenues in its history.

“We see continued strength across most of our business segments and are optimistic that overall economic conditions will drive growth,” he said.

“Our focus remains unchanged.

“We are committed to running the safest railroad, providing superior service, increasing efficiency and driving superior returns to our shareholders.”