Norfolk Southern 2Q Profit Plunges on Higher-than-Expected Derailment Charges
July 27 2023 - 8:06AM
Dow Jones News
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 sabela.ojea@wsj.com; @sabelaojeaguix
-0-
- 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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