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Norfolk Southern takes $387M charge in Q1 after eastern Ohio derailment

Posted On: Apr. 26, 2023 12:15 PM CST

Norfolk Southern

(Reuters) — U.S. railroad operator Norfolk Southern Corp. said on Wednesday it took a $387 million charge in the first quarter after a freight train derailment in eastern Ohio released over a million gallons of hazardous materials into the environment.

“(The charges) do not reflect any amounts potentially recoverable under the company’s insurance policies,” the company said, after reporting adjusted quarterly profit above analysts’ estimates on the back of robust pricing and strong demand for freight.

Norfolk came under heavy fire after one of its freight trains carrying hazardous materials derailed in East Palestine, Ohio, in early February.

The state of Ohio sued the railroad operator in March, seeking compensation for damages to the state’s environment, economy and residents.

Norfolk, which serves 22 states and the District of Columbia, posted an adjusted quarterly profit of $3.32 per share, compared with analysts’ average estimate of $3.12 per share, according to Refinitiv data.

Overall quarterly operating revenue rose 7.4% to $3.13 billion, compared with analysts’ estimates of $3.11 billion.