NSC - Earnings call transcript Q2 2022 | Norfolk Southern Corporation

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Operator

Greetings, and welcome to the Norfolk Southern Corporation’s Second Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Luke Nichols, Senior Director of Investor Relations. Mr. you, Thank Nichols.

begin. now You may

Luke Nichols

materially Thank view the you, today’s which note during of and quarterly may everyone. subject to risks Please our those annual most for good we will a important. morning, and differ and call, uncertainties statements, filed risks Please actual make results. to refer as with that reports and and we from SEC certain are discussion uncertainties forward-looking full

Investors full are section, non-GAAP posted slides Our download available reconciliation to in the will call. with at of along presentation measures comparable nscorp.com a GAAP transcript be today used the measures. after A and

Slide and Norfolk It’s X. pleasure my Southern’s to Chief to Alan President Officer, introduce Turning Executive now Shaw.

Alan Shaw

see commitment second our approach. joined and be, but Ed hard-working I employees a to service second earnings In serving lot with by it the and with trainees Service next inspired SPG customers. in where evolution Southern’s our Good appreciate and field to firsthand quarter, of team. I not our am sincerely and of our quarter Marketing XXXX today encouraged launched craft pipeline by privileged is want Officer. the I our vision to spend yet we stabilized and surprises our their of Cindy Officer; operations Operating morning, George, the operating daily talented am shared progress I no am of everyone. top dedication Elkins, Chief plan, supervisors. time Chief Mark the signature our we Sanborn, Officer; call. to Financial by and expanded Welcome Chief levels, conductor Norfolk

any highest workers and the agreement their reach our that to to people U.S. our of among eager company paid the and keeps economy. our service essential are recognizes customers, an craft industry We

will increased year-over-year delivered revenue impacted sale X. $X.XX of XX% to as second headwinds. well last unit performance quarterly earnings per combined a to second We XXX volume a large solid record fuel revenue by Revenue The absence Operating offset with by called Moving per improved share. Despite efforts XX% out and share, X%, the adversely our XX% increase steps plan we prices. are Southern fuel we record. headwinds, taking of a due property team. in to Slide implement primarily quarter a the today our making long-term as financial and shareholders. year’s EPS as customers quarter grew year the deliver by versus a these operating that up for are restore to were our new Thanks in Comparisons SPG more per X% higher last record. price was Norfolk and than more service value basis organization points operations-driven decline. Expenses top ratio customer-centric

value their Cindy? company discussion conclusion proposition operating part is where detailed look growth insights safe will and iteration, There are and because for plan consistent restoring our an Our a creates a to I’ll smart how equation our it Southern We and we service is and the is efficient service, of for marketplace enviable the SPG have in our for doubt logistics customers’ few supports creating we unlock productivity top improvement prepared improving operations service. around continuous a product Norfolk no and to remarks, shareholders. meets on growth. and that turn SPG how share a headed. aligned update named our needs customers, on reliable today’s now for of value. At compete this an and the platform at markets that I’ll our Cindy

Cindy Sanborn

Thank you, good and Alan, morning, everyone.

drive were down what productivity. quarter, levels, ton to discussed X% as down second X. miles. the we starts we challenging to flat environment last increase productivity face gross operational team also in Slide and quarter Similar continued crew a volumes T&E workforce. gains stabilize I quarter, in our to In and work gains Crew service Turning and continue our to the X% to make

have that to would run preferred additional we were However, challenges. by limited starts crew staffing

a includes we of our increases train and the currently locomotive support As promote our see fleet Despite ongoing will reduce this produced active to and conductor pipeline, to modification record investments size portion in program, DC all-time the we driven the just components. but technology, multipronged additional year. This solutions will small to more produced crew to for strategy name starts the surge volume AC promote service to conversion a record reduction have trainees powerful highly efficiency, productive in consumption. to another decision recovery, data-driven we more few our further strategy we that friction fuel by keep of to idle

better as drive enhance network. We even strategy we execute the results expect our to on fluidity of that and

speed Train are challenged remained in improvements we terminal the encouraged the and but quarter, Moving in by seeing we’re here really on Slide dwell X. July. to

as our pulling every are our delivering levels service restore We lever priority. customers top and to for

a job dedicated about done. and plan getting few to going way long to go, have I’m the the speak next over slides to We our is for accomplishing the workforce this.

update our an is which X, Slide T&E progress. on to Turning staffing

you network And attrition. making qualified can more our employees we’re on conductor felt. strong very more on offsetting trainees. the that progress encouraging, is really And pipeline see being those getting in impact July, a maintaining as than We’re even of ongoing

locations. weekly continue. to start labor challenging, to this that note classes expect We the market are continuing in very momentum will is still I and particularly certain

we to get sign-on referral incentives advantage attendance and go transfers, deferral taking retirement need and them, more. We’re option folks bonuses, and including teams, where every of

both operations with ongoing our begun ability adjust demand major in increased switching in demand. since we the demand need converted recall operation locations to best to Bellevue, were capacity of time, is our facilities our can An service. our resources and resuming to the the and we resiliency of to We’re that align examining our have pull in former Macon also dictates terminals, Switching serve that return hump both provide is of of how these to that to both example this yards improve XXXX. has most Having two flat conventional have negligible at can to example we operations an and and network humping as costs. expeditiously process now upstart a of we efficiently with lever customers hump we our

joining and safety and are progress to laser-focused made with that numbers we’ve staffing field, a with large employees all providing are new the Especially running very we starting priorities. am safe operation, fewer and we to for move excited employees, the future. out the in injuries and train On our of new that critical make about progress the economy, foundation individuals on We happy us a are X, on continue of confident will to accidents. tenured alike I Slide translating talented help initiatives this on our reinforces our the

to of Slide moving operating Now with progress our plan, XX. made out I’ll latest the about evolution we’ve TOP|SPG. rolling the talk

quarter, and of We crews when and number three holistic and and a focused a which in was the it earlier, of growth. reminder, legacy at about is creating SPG as best Late what resource landing the acronym And second fresh service, of productivity the spoken Alan we to both plan, on of a and TOP and weighed to prominence Plans. As business. we power on from an composition signifies distributed prospective service, trains I’ve apply and we Thoroughbred longer and routes. the we’re pillars: as building equal the core last continue looked have locomotives then for best the on Operating a when launching each power. balancing prior We in where dive benefits noted perspective approach trains, the with longer few and made and took within launched distributed about trains, and plan our productivity changed our locomotives growth. terminals the train We of balance creating is consolidations longer years more and network. handle our across how over that would couple deep decisions business, our routes looked flows the the flowing for take at can and built and how executability rate train on before what time

go increase we to and drive in more one from have frequency This our simplifying while service in than and growth. the markets allow intermodal we intermodal several executability the will where role market. core we each of us As forward, terminal, particularly even promote will value terminal our franchise each of more will

long-term consolidations to and bulk lesser focus. traffic on progress degree, with other has we’ve train a strategy In solid made years, blending Our a types. recent

each and remaining train. add on identifying how emphasis can added XX train cars or to putting XX, we’re unit incremental XX network an take Now the we

Moving indicate to we’re early a to the Slide progress of XX, couple that discuss seeing. metrics

train our train performance seen has on of arrival in July. schedules the executability and meet substantial here encouraging. service and this slide, XX% the to With improvement our described standards we I previous very is improvements adjusted First, TOP|SPG,

reinforces As into our improving in hitting rate. is July, update, been trains velocity and the has performance an velocity train at I showed increasing that on network their this trend translating slots

number driving this this of DP are is and each service trains also fuel-efficient is impact in solid capacity directly creating is SPG the shorter will trains give we a driving executing that component it, more They productivity, and increase they of day. strong Team several a built as growth. than each the and a the us distributed of dividend for now aspect run powertrains resiliency. smoother, One reasons plan run

restoring of now to top and primary are paying and Thank by go And Ed. over it execution we you. I service. examples have long a three We where functions: are will solid the to our fully a of a to by initiatives off; success further just to be workforce. few driven improvements will SPG; way turn field These staffing continue

Ed Elkins

everybody. Thanks, and morning, good Cindy,

to Slide go XX. Let’s

$X.X the shipments helping Merchandise price on to in notable gains. network for growth in natural declines fuel fluidity shipments by also due to partially strained challenges. Within revenue per the gas, construction-related merchandise, still revenue rising declines driven with increase recovering was were revenue the response offset for export period demand. were quarter from overall records more of This resulting overall a revenue billion. last We unit, for on record higher volume, growth service record Our also a disruptions. from unit year. improvement. and the decline surcharge per same offset for achieved year-over-year fuel, results in revenue per grain than volume higher and quarter to in up and activity surcharge rising quarter drilling gains a in saw unit and as sand, Revenue reflect by excluding revenue price demand network growth those and XX% our strong fuel was from That’s offset from increased volume steel slightly amidst double-digit X% from revenue revenue down from

increasing Now an coal our strongest from price year-over-year, our price in in higher fuel turning modest Point and unit those improvement the export intermodal portfolio all demand. well Revenue, gains, response limited revenue quarter second international intermodal double unit were that Intermodal. business supply per long-term revenue was year-over-year unit and from closures. fuel with the or excluding digits in driven partially was shipments by platform revenue this in in by domestic per the Declines storage gains revenue quarter of of ongoing into growth higher customer growth will challenges. improving revenue were largely revenue performance International as surcharge to shift shipments to for second excluding particularly This up revenue unit base XX% all by to were impacted away facility unit, Coal Overall, in our a per year-over-year the coal by in in was supply a more in markedly impact quarter. the per quarter down fees declines. and future. than consumer offsetting reflects north IPI, Inland volume quarter Revenue chain volume and for with propelled sustainable markets. growth due serve Intermodal revenue, offset second fuel, total negatively sustained the our

outlook our Slide Moving on XX. to

are to strong of X% forecasting for quarters end the policy, Despite opportunities We’re the and record the environment third cautiously the monetary to economists the network. us aggressive fourth will XXXX. providing amid our volume optimistic and restored most inflation remain above for risks base both expand revenue through is GDP of growth and recession as that demand still XXXX, fluidity

expect automotive beginning the low, are our XXXX. markets be in Specific and moderate of volume of strength U.S. we half led addition, both up very we nationally In where consumption, which XX% gas our in second which the light to prices to remains levels of is well bode to drives over segment, see experienced for last six to production forecasted our unemployment production merchandise the currently many months by vehicle be markets.

for prices, throughout Looking prices XXXX. pre-pandemic markets, we our a tailwind Manufacturing commodity levels. at remain see elevated overall but from many been mixed activity signals those of has

However, of remainder the certain the outlook is year. the less for

the Lastly, intermodal, second lines half throughput our for will both we improvements we of strong for remains improvement as year-over-year in Within of our our container domestic of demand domestic business merchandise in as on and allow franchise. Backlog movements recover. will anticipate greater provide improvements and our volume demand XXXX network. our levels growth in service service overall opportunities most for international expect sequential in markets

expand on in to to IPI of market factor. import growth although share. limiting activity our and driving laser-focused providing exists is the opportunities With market, addition, we’re respect international In lines growth volume increasing a new business, lower and is conversions truck highway logistics our rail for to opportunities, domestic

We’re close pricing a also have albeit fallen, eye very keeping high from levels. on as historically rates truck

to likely in conditions Finally, markets with quarter. year support demand. second by and by same met potential suggest in the Recent growth and positive RPU utility in potential that for supply driven prices network the we upside export second export coal energy declines growth outlook coal fluidity. achieved the for coal our not half volume Market these year-over-year we’re upside in of the with markets is driven in realize our

the persists continue growth for we uncertainty that serve. environment, the volume to that we in macroeconomic markets recognize opportunities we see While in

update delivering part execution over opportunities, it customers Mark that top SPG quality these As plan, the operating thrive. our turn of our our results. are financial now by service an to our to to need our committed of capturing for we business expanding on I’ll

Mark George

you, Ed. Thank

XXXX some or accrual we As for impacted operating X% quarter, on year, XXX but $XX adjustments, outsized impacts totaling sale a drivers effective those of we legal and Alan and changes. creates related related case. claims law $X.XX the headwind Slide of a both basis accrual a $XX basis to impacted had year, $X.XX tax operating the a year’s in by of rate. ratio that ratio million, XX core On noted, million XX, our property in Slide All XXX was change nickel last leaves reconcile drag points. impacted This modest EPS a contracted some have increase to point also basis that QX points. an was QX state EPS OR XX grew QX our that while impact point fuel. basis in the the by point Recall and on tax XXX the Also overall from our That highlights of XX. and XXX last to basis headwind there in Shifting OR a reported on that points EPS. heavily favorable basis on by discrete

higher RPU inflation while our well earlier. a IT company-owned our and large investments. fuel driver XX, volume wage X% by as the rate for the network the year slower flat of gain impacted purchased income despite our accruals, $XX from was we contractors into XX% material expense third-party expenses compares higher impacting X%, the share part lift components in net grew by million Operating is Purchased out $XX as situation. non-operating captures flat operating in equipment other decline, general items service was operating X% rents lower again headwinds affected benefits operating and revenues the life cost. of spoke on tailwind XX%, thanks a last are were the is and trainees quarter. and as income, services from rents, up that The by up Compensation net current the expense speed of the from is services about higher income two-thirds was up offsetting with critical to of called but Slide million as count. discussed, due of driven inflation. Despite tax insurance rates incentive Ed this and As increase Drilling Increase is cost fuel, million both EPS to nearly property and I the contractors. well lower $XX strong

non-operating income can account of is are and company-owned to blend income investment. and the let a imagine, a an million investments to have non-cash $XXX On in This to operating half to you roughly quarter. at losses P&L invested to second items clarity difficult expense income I million the in income estimate is unable life gains labor to nets item directionally. or These is help on model, likely to gains traditional losses these some provide this may you play are current the from of the million, and nor and in insurance asset, that in each As that Shifting mark-to-market least me neither here negotiations know that the this headwinds other losses. of incremental benefits collection And tax. quarter Slide by the on at time. our we investments. below subject note our equities estimate expense out to result we insurance XX, of comp income is income of top per this actually company-owned typically it’s we portion returns $XX this, life A on about are and are so line of fixed important driven quarter. to $XX

was tax bit this than at XX.X%. in quarter rate effective the higher such usual As a

year. our of share to income net repurchases earnings flat in per accumulation exactly X% was While past the increased share due the

highlight rate. reduce state in And Going will $XXX roughly a for that the for also million Pennsylvania that quarter. change would favorable expense July the moment, the back their enacted income I adjustment non-cash tax in income a accounting legislation to tax tax one-time like to third have to

on XX, additions $X.X made our inflation the our be continued six here locomotive free higher observe efficiency. program. benefits additions distributions free as we’ve on high-end cash well of on flow property on an to higher touched year turning nearly with to we as that, rail you’ll expect Whereas six months progress Incremental through up program at I gain with to XX% And flow last impact than upon, having are Now Slide would payments activity. is conversion of the DC-to-AC fuel both improved cash being repurchase guidance generated also trending Alan. property to and with so replacement it dividend and billion range. Cindy in billion back $X.X strong our $X.X CapEx Shareholder top months billion strong hand share I’ll operational through

Alan Shaw

Mark. update on conclude strategy an for the brief outlook you, and creation. thoughts long-term our I’ll Thank our for with value on year

XX, strong in in Slide has half on our see, plus revenues improved the revenue improvement of XXXX. the in outlook, growth the underpinning back with year-over-year confidence and volumes first fuel You’ll better surcharge performance, outlook the half associated continued service strength improved sequential revenue XX% a

Our elevated translate first half into operating a will full-year ratio. in deterioration ratio and was the These service recovery headwinds result operating delayed prices. fuel a of

our expect half us service from back absorb Although challenges. and the half improve with ramps, we service recovery our as more associated to allowing costs the reduce to first

if a in with labor in costs we XXXX negotiations. will recorded Mark incremental any there do associated resolution not know As be mentioned, our

on today the our although focus to in restoring further. Turning short-term, service much vision XX, extends our is Slide

we insights complete beginning. is share days to doing The our service future. some are now only work improve As my on to like I’d XXX first as CEO, the I

Norfolk our win our Norfolk for to organization resiliency built operational We’re of propels operations sustainable growth. franchise customers. has going that creating excellence, that centric on strengths long-term above into for achieve and to network Southern a to leveraging will service value network, market Southern is customer growth. Being a and build our driven, powerful compete the

decades of investments segments fastest a robust build growing with starts made U.S. the proposition we’ve network faces economy. to value that the over Our the

Mexico. coast, east extend all the strong through our great along the with markets relationships lakes ports, the Our and globally Gulf working of

customers. more cultivated further reach XXX and for our partnerships, options the most of Class any short-line the have We more railroad. Extending our than network even of creating I even

a valued have a of relationships broad customers, portfolio as desirable with the diversity We economy. as longstanding U.S. reflecting

agriculture an driver our And increasing markets metals, consumer of enduring strengths. automotive, and long-term Our unparalleled franchise products be growth. are intermodal will

to industry best-in-class as advantage Norfolk on sustainability team productivity effective leading development business shippers Consistent, the industry it capitalize and emissions leading well forward. the keep our to selling prioritize consumer position channel and around partners We’ll industrial the move do with convenient, years e-Commerce ahead. us the more X advantages enhancing service Leveraging supply shippers easier and the compelling experience with inherent creating a another that efficiency, build and us onshore give cost best-in-class of reduction enable Scope will will technologies, to growth for product driving acceleration we in our of service network. forward Our their of point oriented Norfolk makes as Southern. our customers Southern chains of

throughout deliver our the of will efficiency how This successfully with my our headquarters energized. centric, Norfolk of organization, and achieve $XXX am truck simplicity of compete we talk When logistics and vision colleagues I I rail the yards, the from is Southern, billion driven customer a to in to We operations plus market. will rail. truck our

our are American the of proud passionate about serving the moving and essential we economy. in role Our play people customers

Our the reason team is we successful. be will

competency, winning forward with innovation where ideas, core their We people sharing our continuously feel confidently look for are more strategy in a contributions. building forward We and about as their best skills to for a the shareholder develop ahead. months their valued creation value long-term culture bring

questions. to call We Operator? will now open the

Operator

you. be from Thank the will Sachs. with Alliger Jordan Instructions] first line with your And Goldman our coming [Operator proceed question. of question you. Thank Please

Jordan Alliger

morning. Hi Yeah.

what that more simply in the critical adding second is as SPG volumes, Can Is the and factors of maybe around the some give improvement. to look getting the your mind sort the it TOP critical about thinking sequential up comps, to ahead them? of new service – just is you heads? rank most easier Sort your plan, color you Thanks. factor maybe half in would and in turn it discuss

Alan Shaw

morning, morning, already of Jordan. have to plan, critical implemented conductor and We’ve in headcount We’ve got as to some fluidity ramped factors we for which new trainees. XXX this are a a good robust our improved we’ve our is very our continue Hey, providing and play. terms The already up operating customers. and pipeline of of benefit service us in and to customers close

And about we and we as allow so continue our are will OR improve which to to more add productivity, very headcount, plan service, us implement our accept to enhance ability confident the volume gains. driving

Jordan Alliger

you. Thank

Operator

The of next Please question. with with question Brian proceed is from your JPMorgan. the Ossenbeck line

Brian Ossenbeck

talk if rest to that taking volume Maybe level you on off first certain Or that bring the substantial then was the Hey, good you sustainably line up to the on to And network? right Is to gain trip $XX for for year? of million, Mark, the low volume really rate that Thanks final looks see service, do in hit back see that but you on levels. a think wanted quick mile expectations is recovery? a about like for was can start your quarter, of and just sale onto the compliance, what the improvements about morning. it follow are clarification the we’ve changed, just really enough coming seen need they’re to to question. improvement,

Alan Shaw

what Cindy, about talk would with you’re service seeing please? you

Cindy Sanborn

years. talk measure had what while that it’s first for the very to about a at the Brian, is, level mile, it understanding to how to on two number we rigorous a and back make can a question see high bit and XXXX measure wise aiming towards. customer look service the we we’ve around a how while – great measure. in so probably we’re little was the customer that think Ed we we was place we and very And our a place and percentage in And real specifically mile/last ourselves see in challenging what with. feeling I page that’s accountability so hold now, were really had a feels the measure specifically to that put good where sure And they and it’s Yeah,

Ed Elkins

Sure. thank Cindy. you, And

The say customers thing targets here. develop and our helped metrics would first I us our our is,

we want they’re to and starting year. to more some fully expect see the business us terms customers here Our service to continue early in of throughout do shoots with that and green improvement

Alan Shaw

for got $XX can about just kind of gains. we Brian, gains. now I of And out may clarify We million last had QX, had million We in this anomalous year of a the figure. you we you weak right $XX year $XX more as recall called million gains.

Mark George

Brian add, train I’ll in speed in we’re improvements also dwell first well. delivering addition mile, mile/last terminal to and as

Brian Ossenbeck

what normalized the should Mark for pencil for And the year, gain, in of we rest one? a level of if have you

Mark George

cadence. gains bit obviously quarterly to real be more can the usual little volatile they It estate to happen can move even certainly around, than if much really slide. can them a normal going expect give I’m year, not this you Yeah. we and

running there than back the on we’re amount are if million range, but us. $XX that, moving little you So around half, low be in in less probably year-to-date, look at things so the a might because bit similar far about

Brian Ossenbeck

Right, makes sense.

Okay. Thank for Appreciate you the details. it.

Mark George

Thanks. Brian. right, All

Operator

is next The line Wetherbee question from proceed Chris Please questions. with the your of with Citi.

Chris Wetherbee

going terms if be a ratio we for any of given somewhere the the terms of back sort understand forward that. operating morning. assume the half you’ve the $X.X Mark, of of Yeah. leverage what us quarter-by-quarter, Good that to operating a guess outlook around volumes need and is some sort ratio great? there Wanted in ex-fuel of assumption clarity little the to you help in hit sense a And forward in and give be OpEx volume operating of going billion right number Thanks. would able Can us then still sort bit about I numbers? you or the there’s to underlying talk in should

Alan Shaw

with our year. for be for the to have volume, said we’ll respect we Chris, outlook flat

year-to-date. X% down We’re

that’s and move to second sequential So by to improvement going as want on you supported that we product. suggests comment our half into service improving OpEx? year the the some of Mark, be

Mark George

in Chris, Yeah. thinking. exactly right your you’re

OpEx as somewhat to and If moves, excluding I would fuel’s that look fuel’s numbers to going QX that would the two expect because out even our maybe average. going that quarter you at be We second in but be called million take-away – quarters project to amount anomalous. at fuel, look representative of ex-fuel on items OpEx the what and you was be the that $XX last in what the

or P&L, of So that’s there unexpected particular you, do line we’re we like calls. the but typically And out could them call our area the be we’ll in item some in in quarterly that kind to within if we have account any events, aggregate expecting. moves

Alan Shaw

And of the expect then XXX the to the that of his improvement, also point not that year. had the half Mark highlighted of fuel the respect in case basis first be the OR in the We comments, half headwind second cadence with to do year.

Mark George

We expect as we it year. the to moderate, of balance yes the through go

Chris Wetherbee

very time. it. Okay, much great. the for Thanks Appreciate

Operator

Seidl proceed the question comes from of line The with your Cowen. Please with Jason next question.

Jason Seidl

talk Thanks. little about a call Operator the bit to wanted RPU.

step sequential as bone. to wanted meat expecting step think Is mentioned just I on a you down get that you’re down a think step could on or here. a basis to you it do just it I little the more guys year-over-year well? down

Alan Shaw

Ed, would that? address you please

Ed Elkins

sanctions coal have these they speak. energy and result The But [indiscernible] – the we’re day. of historically the high very highs. in looking three changed they’re still near of inventory year to lot the customers close Russia, a prices of stay a have We and so the export as there’s dropped every still off to at quite rise on but prices a we of remain fact our commodity Sure. And is in course market, ahead bit.

production think like about about looks So you met think and supply for and to higher prices when chains, as both limitations, continue really you thermal coals. support should demand, constraint, what it steady

pricing the expect the QX. the expect we same of of toward thought saw outpace contract year, that We but end those see where and inflated we we to beginning to atmosphere be don’t were at we spot in

as far as the see to in So I sequential think yield. when go. about want about do it, I declines That’s I

Jason Seidl

Okay.

still So now, at it notable least like sounds for prior above probably declines, sequential year. but

Alan Shaw

Yes.

Jason Seidl

the for time Okay. Thank always. as you

Operator

line comes your Please proceed question. question of Research. Next Scott with Group Wolfe the from with

Scott Group

any Good if XQ guess Ed, do, add some the down how RPU second to headcount then more that realistically hump point if is maybe be do Cindy, to thanks. down them or think want just XQ? of I there’s of you a things, to your half, on I thoughts these couple Hey, in RPU sequentially to more of Thank yards about, much – and restarting expect sequentially morning. you that’s was you. is that to coal permanent? if that going will from be overall And that’s follow

Alan Shaw

that expect we’ll Scott just the I year, can of compared the we preponderance probably going last be tackle trainees, with higher T&E, STB. about And trainee to in employees And and then well. the gave I’ll qualified see the targets of end the higher but say counts, at end that our is that, year. headcount that first you thousand Yeah, the question as to also a T&E to heads of be

up November. next ramp I is And by that we ranks qualified think Our get to the target on into as continues X,XXX, year.

think get time X,XXX, target we of the I by there out over to to got May. we’ve

talk Let Cindy, you me to it hand about humps? want off to

Cindy Sanborn

Scott, since my talk reactivated Thanks two areas want The any in bit ourselves Yeah. yards to plan that and always our service we I for prepared served in and critical Sure. We sure them was it. because I do humps their way about to the remarks could them any as switching capabilities. need demand so not put eliminate Bellevue. make to additional cost in enough didn’t Macon and idled hump a we justify give these the returning XXXX, capacity we expect ongoing upfront there’s some question, We mass to more XXXX, little because that nature. has by which substantial I evolved of or

went term time, example you that we as So And when the it, idled it’s an productivity the them humping of those. there’ll resiliency. or think that either evaluate think, thinking we’ll long cars we went have yards think, again. do most I that to we’re into That of of hold and even into the always of was lot to be idle we think the returning them first that to was And able to we thinking that going be a that times part I may – we’ll And them when about we is, do that. onto important where gains that hump see short returning service. generated for

to which us to is levels. meant help number do our return it’s our goal service one here, So

Ed Elkins

Yeah.

on but overall intermodal a we’re for Let rest the the – in that’s second. markets, opportunities Yeah, continue be including to auto. going our sequential about coal me in see for an year, the price going sequential see drag inevitable strong coal the other to talk merchandise RPU of to decline improve we RPU,

Scott Group

you. Thank

Operator

from is the Nolan Stifel. question question. line of Please with your next proceed Ben with The

Ben Nolan

appreciate it. I Yeah,

and of So you back the playing little a maybe curious the you around guys could storage intermodal in you then on mentioned the if that fees side. context how see I’m that half put out year?

Ed Elkins

improving has We year earlier Sure. be chains become anticipated year, more improvement lately. the supply while really that I’ll as we’ve of we take progress. more that. And acute the had the constraints some seen in saw would

So improves, we’ll will do the improve year. and chains we decline. throughout then charges of those supply as they anticipating rest storage fluidity that see And are the

Ben Nolan

as we magnitude to what that of should means terms Okay. Any context and in all? about how order think at

Ed Elkins

control of similar future rate if we’ll see like Now, forecast this storage. improvement, the things is chains, you’ll see supply I presuming don’t in think change see but and you I we for the in

Ben Nolan

I you. All appreciate right. it. Thank

Operator

question. Please The next the proceed Long your with line Justin question with comes of Stephens. to

Justin Long

the anticipated then And than last you’ve attrition versus year right for year? employees Cindy, just seeing XXX rates new versus everything it’s the you in else? worse rates I points about for if with the levels, normalized now attrition with to thinking fuel much you basis year. that Maybe to what of Thanks. is OR a start into coming How full Mark, XXX one guidance, especially hired what that was talk about could wondering you’re

Mark George

then Mark. portion quarter there to path sure, come to was think of come. it saw as our start we’re inflection issue we’re a points Justin to Certainly of not has as talking heard an now you thanks. fuel way were we is real take This volumes, And here upward going and to but it about to fuel ramp When is require not the of the in on quickly a really still that improve expected more lead hold happen here. that we seeing prior concluded we I that obviously the we pretty headwind. middle it volumes service having gradual just guidance, volume basis for its some projecting did yes, And sustainable a is ramp QX. about the XXX

moderates We in go bigger it than of the the second as do it’s think half back quarter, through the Now expected. we had we year.

We’re take certainly when that, do We for fuel projections an not not at change fuel but we’re – control sure. well. element we into fuel account can’t that curves, we is look the our of as

Cindy Sanborn

Justin, we from or There and with And in we where think And that year, will tenured as And markets more the trainee announced about a clearly than as are also positive very rates, globally others. employee for all impact and perspective. that’ll we’ve we’ve attraction. seeing increasing where been well conductor it’s we’re rates. year. perspective all I attrition that a both challenging as consistent look retention say a a have we recently employee training perspective as just seen conductor that’s our both far us, are locations same new as

good. feeling we’re So

Justin Long

Okay. Thanks the time. for

Alan Shaw

Thank you.

Operator

next Chappell Evercore The Jon ISI. line the question. your Please comes proceed from with of with question

Jon Chappell

and to it has of labor your well, it specifically from you doing Thank the if like If and in like a acute meet a out guys Cindy, the Norfolk good in component and bit in more of an can you a months see your this there’s laid capacity that more resourced latent job as we’ll see you’re this equipment on of the the presentation. what’s perspective, up what’s little been issue July, actually service volumes. in metrics. appropriately demand had inflection and last XX quickly, over especially you chassis morning. situation guys T&E labor, you. and Good take are focus seems that ramping with pretty starting you’re kind of out we it,

Cindy Sanborn

So – turn We little about let equipment locomotives talk talk about it me I’ll chassis. – and add to to do are bit we a Ed just I’ll over wise.

whole that basis to remarks, activated also service, to my recover this our some keeping surge make over bringing some from is You AC on you it for we’re that we process me fleet as important didn’t mention note chassis sure equipment is locomotives, in here indicate detail. and allowing DC on turn but did prepared I a we’re throughout conversions, to capacity which from an it us let locomotives our perspective, Ed fully

Ed Elkins

you, Thank Sure. Cindy.

expect year. more land significant couple tranche arriving week, have this to quarter a during in we We the of with a and hundred hand fourth improvement each of

disruptions street space. available you very different mile as not the drayage the with offshore I shrunk wells elevated last I we’re well as associated consider partners a of when And congestions business again, chassis. of in the a you seeing We business. steamship that comes of first both volume really lot much. gate, would it lot ports, of associated street, warehouse if normal do, of to a domestic normal as the would our the So issues waiting supply as are normal, course course the on lines. of what capacity read pretty shape I and, way impacted other course, fluctuations sporadic think But ports, by mile see Outside which well chains at call I with good ships chassis for number we of has see papers

Jon Chappell

it. Got Yes.

Thank Okay. Thanks, Ed. you, Cindy.

Operator

you. Thank

the from of your America. Please question. Next with proceed question Bank with of is Ken line Hoexter

Ken Hoexter

a great. morning. here. Hey, Maybe, bit Good hump little returning dig into Cindy, want the just I to

Ed just I with guess, just on isn’t scheduled did we couple something other back, that, there’s available. expertise are being consulting save years just CN Harris from out a as would I I the was PSR on touching them to under basis. with that bring guess, you to on years, heard flat, it of would the you humps efficient thing all and and table to the us to like PSR that a why precision eliminate Just time. And consider be experts any x, then, seems railroading first guess, do was the Obviously, it of more Is Alan, there bringing on consider? side

Cindy Sanborn

hump. start me let with Ken, So the

impact bypassing take we hump this. customers. into yards it. on people other a where only really reflect we the switching and think do did cars Challenge is, of our that since deep the not really about you occurred has having switching when to XXXX, them. demand can So And a dive idea that that of really changes traffic big But have the switching had piece moving them them are serving to beyond the flap so which you reduce that been to sort

of it. to So And a but consider location have. with be games hold being we to the here. the may switching maybe really to evolves, going that you the be done longer do and we sure thinking had just we’ll And that have term, emphasize want again, make able to that’s on short a it can that to we in really is to I it able value really really term associated that good it we’re trade-off a behind see the cost how number get

Alan Shaw

making to have We’re to running confident of sure it’s of not more route the is humps going just the you’re out them cars hump. add cost, not to that case

and discipline more so operating these efficient. the our plan changed. We’ve got volume great just saw team. opening balanced switching focus a two pandemic during those the new on yards the operations we makes just a installed hump We we’ve we very and has when closed And that And humps a outlook plan. efficient, operating maintained

on – greatly folks this outside folks take of two of around Norfolk fortunate from join success. contributed the us the have look you just to who call, who table As to a our Southern we’re

Ken Hoexter

Cindy. Thanks, Alan. Thanks,

Operator

Wadewitz from the comes Tom question your UBS. proceed Please with line of next The with question.

Tom Wadewitz

on I you. the bit Thank and changes. Yes. Great. a more to ask wanted little TOP|SPG schedule

we sounds starts schedule on that you’re might as it also I how should like fewer train I think the relative about starts, even you the And reviewed that originally the of made you. you train in be something think think, ago of changes. to I changes offer other being you train doing made? TOP? like should were with different perspective TOP|SPG? you those or if also couple and Thank a consider Is intermodal fewer and train years some approach. then the train wondered made implemented – more and said trains we longer How of maybe when Cindy, if changes schedule XX% changes what changes of more with think starts just about trains. in it could starts you that terms

Cindy Sanborn

question. Sure. the for Thanks

schedules our cars realistic flows level and and network, that executability help So to balance across just have sure high balance go and depart trains to we to that network, main a make objectives TOP|SPG allowed size. the balance improve and increased here, really part us locomotives in changes the both three to network, terminals. schedules the the were to on the the train And of were arrive

have bunched or we of out them bunched a didn’t terminal. So in particular

don’t have prevent that individual schedules working sure my a from lot that in operate so we plan, we our the adjusted of and/or we’ve have for to us able power our prepared consistently. terminals And mean make I that them trains changed and as we’ve doesn’t dramatically, is accounting in work remarks, execute as also, XX% them we’ve We can of utilization increased that were that the but when departing noted done. being distributed we that that the conflicts

achieve there. trying So that’s to were we really what

Alan Shaw

substantially has and customer surprises customers. approach, consistent our operations with involvement? on network, our perspective And train meets makes the our we Ed, involved you number give which executable reduced on more fluid team. of by our the more our to do want some no It

Ed Elkins

Sure. Absolutely.

want. a every coalition us train executable product. schedule. And customers we that we want by just really The a service me business have want lucky they first an have are of thing to say, partners with to do so and predictable our have to great They let day, way, the

through say we’re that were And our I they And the of TOP|SPG would we’ve gone us them. starting thing. to I the about think some so same at to And And they think look process. enough results. product. we’ve changes have executability the the been highly had early can’t that as improve with say To collaborative with the see collaboration I that necessary

So level but partners. am those our I particularly collaboration of the enjoyed the we’re we’ve by most that encouraged results, with encouraged by

Tom Wadewitz

just in a increase think should but train big just, starts or more of guess, an to net, clear, rebalancing? not So reduction we kind I a or of impact, as be this

Cindy Sanborn

And be I in small still is our starts. I crew some have what would going it or in we putting But relative that – We core that I – process we think the railroad. what frequency the markets, roll continue lanes. and in improve it roll And of late you’ll it’s starts to to we’re do second going lane second out, to we’re of it in have adding – the it half to mean service new the work or in still those we’re I in was not may intermodal space. as we started a reduction some to in on actually noted say quarter. out we to

Alan Shaw

costs reliable, That executability friction improves on the associated more PSR. is Those with consistent, what are plan, really more we’re network. of our more it reduce principles to of the the does in it our which schedule. operating Tom, going will means slowness be

Tom Wadewitz

Thanks Great. time. the for Okay.

Operator

Bank. line Thank with your you. question. proceed is from The Amit Deutsche next Please of Mehrotra question the with

Amit Mehrotra

of inflection. Norfolk, and I Cindy been this just for be long one think actually And we better time a equipment The is do understand for the a months. just OR – big Thanks. talk several fourth guide, we some kind fourth inflection the you industry, understand like versus If third cadence like is full I flattish the I about here really year guide to the for And OR contemplating X% I a maybe Hi, gate third year wise and as worse we to labor actually think I because stabilization. talking that. more about of in of the Mean, the XQ you back look like when to slightly it we some quarter know would in a shoots, timing-wise, whole, is Mark. the half a guys industry where We’ve quarter does volume mean the are last over as seen Typically, with XQ. think the metrics? been you disappointed Hey, don’t pronounced if we’ve that. full service mentioned, in revised or the just October? or quarter? and the then you’re do lot you September, talking maybe think green or labor can something inflection tangible has the the the maybe just everyone. service at I of see down I the but Alan. pretty see the kind industry about more in think weak? do it’s see Appreciate not a point helpful time. wanted out quarter When

Alan Shaw

as onboarding terms we crews. vacation I’ll before will the with of won’t but conductors. the progresses. out of product be metrics big first. the Transportation and Service It of a in year I our Yes. We beginning the seen that the in we some TOP|SPG improve new next already the as of our implementation our move to of create cover year improvements well And think Board. that’s service our season lift. at lift headcount linear, continue see outlined with to availability We’ve of for be we’re should It will targeted plan as service going

Mark George

to profile as quarter there the of pretty help of so take see versus of And OR fourth typically effect that the that when might that more should are third volume ramp more leads volume the much We’ll a probably operating in Amit, progression. seasonal that some the with ratio. quarter into well. at neutralize quarter the But that course, headwinds fourth look we

of So upward little as we’re improvement more a a it to bit – give sorry, gradual an the guidance, fourth be to volume I’m year should we quarterly say, does bit seem but on mainly more a quarter. in in the probably the volumes in the little balance of The comes not going fourth go on the quarter. mainly as come the OR I through growth, of

Amit Mehrotra

in the step slope step the So to quarter? it that into back a of trying you J is we we does before it bit little a versus understand, or half accelerate fourth where I’m the second back upwards is a is a take in are mean just quarter curve? it back a

Mark George

we’ll the going we’re quarter think third whether would second from the – also fully I’m tell to – to or the not one sequential if that I fourth we’ll you I with quarter. see from to sequential there’ll third on be to see expect the Well, somewhat yet or another. improvement improvement I’m quarter just par going

Amit Mehrotra

Got it.

much, Okay. That’s everybody. very it. Thank clear. very you Appreciate

Mark George

Thank Amit. you,

Operator

Please next with of Rosa Ari line proceed with The your the Credit question from comes Suisse. question.

Ari Rosa

morning. Hi, Yes. good

ask to wanted I question. broader of philosophical kind So a just

about be resumption point kind equipment have we’ve kind these at improvement? think improvement? is network, OR it And a in margins been be? around service gets as questions we incremental some But bringing a looking you headcount, do think where of a the adding want that there to where you And see point can of that odds Is talking back might obviously asked. as at yards. with hump it think of you’re reintroducing been service I of we with dancing about improvement at OR maybe couple to what back onto we XXXX what

Alan Shaw

fully other that OR attendant complementary. improvement each we fact. our improvement for service margin and and believe improvements service are and They support Ari, in belies that the trajectory

approach. take new and as we’re and how insight some plan, We’ve of our going thing. balanced to of operating got growth about We’re balanced provides that sort objectives this productivity a to thinking service,

to Our productivity see priority drive will significant and volume and service gains, uptick going collectively improve improvement. to improve, is fluidity as which margin service you’re

Mark George

current amount service you, a to have travel, taxi, I costs a cost whether it, recrews, we’re incremental like it, train whether there’s fair costs, absorbing to you with P&L to now also name it’s service Ari, with, we’re in overtime, whether right challenges. incremental of of the that deal a dealing with it’s remind And environment it’s there’s we’re cope training, that difficult fair amount in absorbing our

keep that that and in I as So improves, lessen need starts you service to mind. to think

Cindy Sanborn

I in difficult train are and Yes. circumstances even my prepared fact weight up length that in train the here. And talked remarks, even about both

well. customers to serves we’ll think So on hold network run I’m being our that very that. positive efficient And a to extremely very on able

Ari Rosa

it. Got

color. for Thank that Okay. you

Operator

Oglenski question your is Please the Barclays. next line Thank with from of proceed question. you. with The Brandon

Brandon Oglenski

Hey, this question. always good focus more that conductor My I my a And trainees. an engineer is kind we longer on of morning, everyone. thanks understanding, engineering taking for duration. for or be know bit to that intensive but little might or maybe little Cindy naive, though, trains

your naive talk next So potentially bottleneck question? or again, ranks? can a a And is engineer that qualified about that you is just

Cindy Sanborn

a question. great It’s

We as engineers. are noted, is That for engineers. – locomotive take you pipeline conductors to promotion our

down and up step active conductors then them to them Over to qualify the acting years, more made our investments and as engineers part to is of conductors. locomotive the resiliency qualify be investments back to step we’ve working people

that a So process, then the step say buffer is used time I can engineers month. conductor up training trainees. we’ve will this with some starting we we where keep be we’re locomotive backfill already And that that would and engineers through – next

to going where XXXX. on be they big of in we conductor one will stabilize need that’s be, keep focus part will that get eye levels service We that as maintain be to areas – an buffer and and our ranks that the of we that on

Brandon Oglenski

Thank you.

Operator

proceed of Please with from with The Morgan the your question comes next line Stanley. Shanker question. Ravi

Ravi Shanker

is Alan, Obviously, time Thanks. at helps thinking rail your improving, that is about customers how least, chains are for now I shippers to Good the same in loosening. pretty the like think now your super you fast us market help understand truck you’re right or service and want morning, with can truck conversion. everyone. TOP|SPG tight at high And place turnover. supply Cindy

incremental that driving and what’s is that? conversion to TOP|SPG do So enough

Alan Shaw

to respect Mark, hearing customers you’re from why don’t talk with our about opportunities? what you

Mark George

Absolutely.

to is prices the that those very high day. want, are talking every of And are single contract things day us We’re There rates customers of our are that us. they a the them historically our have but every And frankly, want from loosening, remind do customers one levels. to partners with truck but number stabilized. our more business

are railroad deliver in now, to them, improves freight freight year. value have the our like that industrial markets, line improves, to volumes And going on the later our manifest to markets network we’re we’re or move customers as railroad would that. going in They additional network itself want Our it’s throughput network our to and whether they that have and that on product to that confident capacity that able of as right the velocity, they’re energy through the put consumer will do our sight we this to have find on velocity – customers in additional markets.

Ravi Shanker

it. Got

So given confident incremental can truck comes truck the higher you – are market down? that provision value you push rails, the of pricing guys yields even if

Ed Elkins

very, to stay We that. close very Yes.

are at very We’re have stabilized prices high contract prices always levels. truck what Again, looking doing. at

door-to-door and versus gas pricing XX% including transportation. them myself, service going deliver the advantages example, between time truck are multiple that that we’re looked value of We’re The achieve the for approximately let a we we efficiency publicly lanes goals. believe it’s we’re very there to what of customers of packaged about at using for reduce commitments And the And versus intermodal a at competitive an going comes is them a comfortable to to highway, including always a take trucking. offering help we our we remind from over-the-road over offer think specifically their we what business, sustainability. greenhouse number the what seen consumer offers. is period lot emissions. everyone, where as of against gap me We’ve rail looking about goods to customers And when our those long the make advantage gas greenhouse that our

Ravi Shanker

you. Thank good. Very

Alan Shaw

That’s of in pandemic. our consecutive during during ex XX quarters We had add. freight RPU – growth intermodal fuel. recession year-over-year the has in delivered franchise I’ll and a

with so And that value great deliver. the we there’s product

that enhancing on is now of focus the value Our product.

Ravi Shanker

Thank sense. you. Makes

Operator

Majors with question your line next Bascome Please of the proceed from Susquehanna. comes question. with The

Bascome Majors

prepared and if to to both so talk when uncertainty be? that you you the retroactively basis? expectations, you increases to go-forward us those managed the as communicate going as it wage come what some how are have do true alluded in Alan, is with up you remarks, your different about in actual accruals from that than far? actual on and uncertainty ultimately Mark union a there’s And wage Can to your XXXX

Mark George

the a thanks of tell accrued going I But any our clear Hey of in settlement agreed lot make are. that that happens our level, a whether in have we’ve relative we if to or the to is we And discuss and the a to very, positions obviously, industry. we will for reflects terms Bascome, at wages PEB, level to that will question. what amongst you our to with we very back there’s a impact paid efforts an disclosure through what the Look, highest craft weren’t subsequent that will publicly different is make you, be. Mark. the workers This have that PEB all keep PEB adjustment, will

is, our know. So upon accruing right something expectations again, based were. are what increment let now, whatever we But that you we’ll

Bascome Majors

the or agreement it just in that the Thank the a mind triggering would in a or that something something be PEB tentative with you couple for mentioned your subsequent of to you clarify, And that. report PEB coalition your that Is timing. like vein? times

Mark George

Yes.

We the have what work will to accountants with the event to understand trigger be.

really I’m on now this liberty to not call. right at pinpoint So that

Bascome Majors

time. for Thank you the

Mark George

Thank you, Bascome.

Operator

Our line proceed comes next Please with question question. Partners. the of with Jeff Research your Kauffman Vertical from

Jeff Kauffman

Thank you thank question. my for very you taking and much,

process. a hiring bunch this question there’s I know a quarter. about the been of Just

seeing retaining complaints were that is a heard One some had they problem of other from we the post rails training. employees

lot think, the of a and it got Do employees it’s Z we’ve imply doesn’t mentioned you I know and this forecast of job pay to carrots still secondly, that the all slows and out different volume a Is the the of there. the just it has you change Gen than Now just we had of item? item? economy of problematic? that guess questions. Is kind Why two But wants the X,XXX the things, by become wage had that. more some put employee increase then stay end theoretically, to And say I faster year? a we kind your let’s so

Cindy Sanborn

the me training piece. Well, Great. let retention with start

when One hold. necessarily will want. Those will can get they they seniority-based tend as they challenges do the – others of that up a to trainees mark our not for be not they do that jobs the system work the do

will information, but step that, convey they’re come into find up that So what real in role, process national conductor to – We us sometimes redeployment of that that terms for table looking become doesn’t the it work do to environment I we as is today. until up. more they mark and us you you have what that’s solution allows more some say conductors be at not really training could allow will structured for. a a our than

will So future, solution, negotiation. and feel and workforce table on why we it like which that is demands our the of is got we’ve it like in what for a we the fit of good feel needs part is the

Jeff Kauffman

Thank you, Cindy.

Mark George

is of Jeff, really of a lifestyle where looking in very a market more lifestyle challenge really unique – for it’s a everybody more talent. It’s

compete to everybody have simultaneously. you So against

sometimes, what in despite many and in work they’d more has structure can their work do. rich call predictable So railroads want the and they very shift. warehousing not their nearby in in And where pay choice a to be of cases, labor in the that and or be hotels also offer, just attractive live home on stay not schedule construction, or they they where rather

right unique their where to market entire just now have choose in very options environment from. labor we’re the a So

Alan Shaw

some that Mark proposing noted, rules Cindy some of we’re those address As directly changes that issues those of articulated. work would

Jeff Kauffman

half of the already know second in question, And I process. the are trainees Okay.

if So employees with or STB X,XXX-plus were by we pretty committed to the that world year-end what plan changes? the

Alan Shaw

cycles the to high committed and for by long-term. We economic because be of opportunistic we around service our confidence generates chains us customers services are that throughout all the enhances believe supply the near-term to and during building levels ability resiliency recovery

us are Ed inherent there do As the There’s a to to customers advantages want long-term. of over reasons lot that a lot noted, with business of our network.

Jeff Kauffman

Thank Okay. you.

Operator

Thank you.

Please your Our is the question line question. from Bernstein. with final proceed of Vernon with David

David Vernon

enough in on does days levels that to we’ve mid-XXs service sort the maybe mile service productivity adding morning, me get early And level Cindy, us you to what of about and we’re here the X,XXX you Thanks longer-term got then, good trying Alan, at questions heads upside longer-term? first of two workforce, fitting for with longer-term talk there side, modal end. I’ve productive. the of seen kind volume in If operating higher in on the think as is to is last can labor Or PSR? STB? version the maybe, about growth for than guys. just conversion or for Hi, level to new absorb whether low you to what outlined understand sense I’m gets in for plan how TOP|SPG. could it to headcount to once that? low that trying get maybe mid-XXs lower this a of you embedded is you I’m this drive to of the

Cindy Sanborn

David, productive from to I it’s to I’ll TOP|SPG, it’s obviously, going going not I static. operating be start. so think very would mean, mean a plan. I be And

adjust and I – about as adjusts We’re size, to adjusts across It’s and as described. train our as going business volume across going network. executability balanced

in cars remarks add seen of a the have will we combinations train I bulk our sets be as improvement areas trains network. standpoint prepared the that of in One additional size standard our my in in mentioned the from of in lot to network, but grain trains, of to able we well

standpoint productivity from offer. a an see and bring operation that So this a allow I we consistent as will to volume enabler on with us

Alan Shaw

ahead. go Ed,

Ed Elkins

the the us to number we’re to head get just be. And adding, of a to handle up it fact capacity gives volume. speed, me that people also additional we’re capacity, people the to of sped the more to it that Let up And number we’re energy then adding. lot add people where and the greater requires to count once needs network even

capacity that on think to allow will that’s So dividend us more the other provides network point take is I volume. a faster the

Mark George

time them and of a and tremendous That’s we’re exactly high to by of to that And product long customers kind the value a that and for service value stable, ours, around deliver that period customers build allows service. them their for customers service what delivering long-term, customers. our need is can a level their value unlock businesses reliable, predictable need our delivering and to for over growth what of committed their over we offer

Operator

concludes This the to you. comments. back Alan question-and-answer Thank for I turn session. now Shaw Mr. call closing the will

Alan Shaw

for thank you We us today. joining

Operator

for conclude today’s participation. you thank teleconference. and gentlemen, Ladies This does your

time, You wonderful day. and may disconnect your lines have at this a

Norfolk Southern (NSC) 27 Jul 222022 Q2 Earnings call transcript