Norfolk Southern 2Q Profit Plunges on Higher-than-Expected Derailment Charges

By Sabela Ojea

Norfolk Southern's profit took a major hit in the second quarter, driven by a higher-than-expected charge related to the company's derailed train in East Palestine, Ohio.

The Atlanta-based railroad operator said second-quarter net income from railway operations plunged to $576 million from $1.3 billion for the same-period a year earlier.

Earnings per share came in at $1.56, down from $3.45 a year ago. Analysts polled by FactSet had forecast higher earnings per share of $3.16.

The company booked a $416 million charge associated with East Palestine's derailment. Norfolk Southern said in April that it expected the cost to be about $387 million.

Revenue dropped 8% to $3 billion, missing analysts expectations of $3.1 billion, Norfolk Southern added.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

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- Railway operating revenues of $3.0 billion, down 8%, or $270 million,

compared to second quarter 2022.

Income from railway operations in the second quarter 2023 was $576

million including a $416 million charge associated with the Eastern Ohio

Incident, a 55% decline compared to $1.3 billion in the second quarter of

2022.

(END) Dow Jones Newswires

July 27, 2023 08:51 ET (12:51 GMT)

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