The Atlanta-based Norfolk Southern railroad company has seen a drop in its annual profits as a result of the February train derailment in Ohio.
The costs related to the East Palestine derailment continue to grow to reach $966 million for Norfolk Southern, but the railroad's service is improving and its insurance companies have started to pay their share of the cost of the crash in eastern Ohio early this year. The Atlanta-based railroad said this year's third-quarter profit of $478 million, or $2.10 per share, was half of last year's $958 million, or $4.10 per share.
While the cleanup from the February derailment continues, the railroad collected its first $25 million payment from its insurers. Norfolk Southern expects its insurance companies to eventually cover most of the cost of the derailment that forced thousands of people to evacuate their homes and left residents with worries about possible long-term health effects. The analysts surveyed by FactSet Research expected Norfolk Southern to report earnings per share of $2.64, on average.
The railroad's revenue declined 11% to $2.97 billion. That's just ahead of the $2.94 billion that Wall Street predicted. Norfolk Southern now expects revenue to be down about 4% this year after fuel surcharge revenue fell $254 million in the third quarter Norfolk Southern is one of the nation's largest railroads operating in the Eastern United States.
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Norfolk Southern Q3 profit down sharply after Eastern Ohio derailment chargeCiara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.
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Norfolk Southern profit slumps, takes $163 mln charge on Ohio derailmentU.S. railroad operator Norfolk Southern's (NSC.N) third-quarter profit slumped 41% on Wednesday as the company took another hefty charge related to the Eastern Ohio freight train derailment.
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Derailment costs grow for Norfolk Southern but railroad's trains moving more smoothlyThe costs related to the East Palestine derailment continue to grow to reach $966 million for Norfolk Southern, but the railroad's service is improving and its insurance companies have started to pay their share of the cost of the crash in eastern Ohio early this year.
Leer más »
Derailment costs grow for Norfolk Southern but railroad's trains moving more smoothlyThe costs related to the East Palestine derailment continue to grow to reach $966 million for Norfolk Southern, but the railroad's service is improving and its insurance companies have started to pay their share of the cost of the crash in eastern Ohio early this year.
Leer más »
Derailment costs grow for Norfolk Southern but railroad’s trains moving more smoothlyNorfolk Southern is one of the nation’s largest railroads operating in the Eastern United States.
Leer más »
Derailment costs grow for Norfolk Southern but railroad's trains moving more smoothlyThe costs related to the East Palestine derailment continue to grow to reach $966 million for Norfolk Southern, but the railroad's service is improving and its insurance companies have started to pay their share of the cost of the crash in eastern Ohio early this year.
Leer más »