U.S. railroad Norfolk Southern Corp reported a higher-than-expected third quarter profit as volumes grew for the fifth straight quarter.

"We continue to see an economy characterized by slow growth, but growth nonetheless," Chief Executive Wick Moorman said in a statement.

Third-quarter net income rose 47 percent to $445 million, or $1.19 per share, beating analysts' forecasts of $404.7 million, or $1.09 per share, according to Thomson Reuters I/B/E/S.

A year ago, net income was $303 million, or 81 cents a share.

Railway operating revenue rose 19 percent in the quarter to $2.5 billion, mainly due to a 15 percent increase in traffic volume, the Norfolk, Virginia-based railroad said. Coal was a big driver, with revenues jumping 24 percent to $709 million.

General merchandise revenues rose 16 percent to $1.3 billion and intermodal revenues rose 19 percent to $464 million.

"The rails have gotten very good at managing their assets and being able to leverage their models for current demand," said John Mims, BB&T Capital Markets analyst.

Norfolk Southern's shares, which closed before the results were released, were down 85 cents, or about 1.4 percent, at $61.35, So far this year, the shares are up 18.7 percent.

Demand for durable goods excluding transportation unexpectedly fell in September after an August increase, while new home sales rose but stayed soft, confirming a slow path toward economic recovery.

Still, the railroads widely beat third quarter profit estimates on rising freight volume, as well as cost cutting.