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Norfolk Southern's second-quarter profit declines 11 percent

Published On: Jul 23 2013 05:00:36 PM EDT

Norfolk Southern says its second-quarter profit slid 11 percent, as the railroad struggled to offset continued weak coal demand and shipping volume grew by only 2 percent.

The Norfolk, Va., based railroad said Tuesday reported $465 million in net income, or $1.46 per share, during the quarter. That's down from $524 million, or $1.60 per share, last year.

Revenue declined 3 percent to $2.8 billion.

Analysts surveyed by FactSet expected earnings of $1.49 per share on revenue of $2.85 billion.

Norfolk Southern says coal revenue fell 17 percent to $626 million because of continued weak demand.

The railroad also said Tuesday that it will increase its quarterly common stock dividend by 2 cents, or 4 percent, to 52 cents per share.