Strome Business Minute With Dr. Jeff Tanner

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Norfolk Southern’s fourth quarter earnings declined five percent but that was less than expected by Wall Street. Revenues also declined nine percent, or about what was predicted. The better-than-expected profit decline suggests that the railroad’s better scheduling is yielding cost-saving efficiency at a faster than expected rate. One by-product has been the ability to idle a large number of locomotives, particularly less fuel efficient older models. Norfolk Southern also refurbishes locomotives to gain better fuel efficiency and lower maintenance. But the company has struggled to diversify from its dependency on coal shipments, which are declining. Slowing global trade reduces shipments through the port, but the company could see a shift back to trains from trucks as companies look to reduce their carbon footprint. To learn more, visit odu.edu/business. This has been a Strome Business Minu