UPDATE 2-Norfolk So net tops Wall St view, but not revenue

* Earnings 66 cents/shr vs analyst view 63 cents

* Revenues fall almost 33 pct, below Street view

* Freight volumes down 26 percent

* Shares slightly lower in after-hours trade (Adds company comment, industry background, updates stock activity)

CHICAGO, July 28 (Reuters) - No. 4 U.S. railroad Norfolk Southern Corp (NSC.N) reported a better-than-expected quarterly net profit, as cost-cutting offset a 26 percent drop in freight volumes.

"Second-quarter results obviously reflect the impact of the recession," Chief Executive CEO Wick Moorman said in a statement. "However, the measures we are taking to control expenses while maintaining our industry-leading service levels have enabled us to post solid second-quarter results."

The Norfolk, Virginia-based company reported on Tuesday second-quarter net income of $247 million or 66 cents a share, a 45 percent drop from $453 million or $1.18 a share a year earlier.

Analysts had on average expected earnings per share for the quarter of 63 cents, according to Reuters Estimates.

Norfolk Southern said revenue in the quarter fell almost 33 percent to $1.86 billion from $2.77 billion. Analysts had expected revenue of $1.99 billion.

In after-market trade, Norfolk Southern shares were down 43 cents, or nearly one percent from their official closing price on the New York Stock Exchange of $43.63.

Like the other major U.S. railroads, Norfolk Southern has posted profits in recent quarters, as strong pricing and cost cuts have offset the impact of the recession on freight volumes. (Reporting by Nick Carey; Editing by Tim Dobbyn)