{"id":24499,"date":"2023-04-26T16:50:22","date_gmt":"2023-04-26T16:50:22","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/norfolk-southern-takes-387\/"},"modified":"2023-04-26T16:55:11","modified_gmt":"2023-04-26T16:55:11","slug":"norfolk-takes-387-million","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/norfolk-takes-387-million\/","title":{"rendered":"Norfolk takes $387 million charge due to Ohio derailment, warns on volumes"},"content":{"rendered":"<p>(Reuters) -U.S. railroad operator Norfolk Southern Corp took a $387 million charge in the first quarter due to the Ohio freight train derailment and said it expects economic headwinds to weigh on its volume and revenue during the April-June period.<\/p>\n<p>Shares of Norfolk, which operates in 22 states and the District of Columbia, slipped 1.1% in afternoon trade on Wednesday.<\/p>\n<p>Norfolk has come under heavy fire after one of its freight trains carrying hazardous materials derailed in East Palestine, Ohio in early February, spewing toxins into the air and water.<\/p>\n<p>The U.S. Justice Department sued Norfolk last month, seeking to ensure that the railroad operator pays the full cost of cleanup and any long-term impacts of the derailment.<\/p>\n<p>&#8220;(The charges) do not reflect any amounts potentially recoverable under the company&#8217;s insurance policies,&#8221; the company said on Wednesday, after reporting adjusted quarterly profit above analysts&#8217; estimates on the back of robust pricing and demand for freight.<\/p>\n<p>The company joined peer Union Pacific in issuing a cautious volume outlook as consumers faced with a slowing economy and sticky inflation tighten their discretionary spending.<\/p>\n<p>&#8220;Within our Intermodal markets, volume in 2023 will be largely dependent on economic conditions, particularly the health of the American consumer&#8221; Norfolk&#8217;s marketing head, Claude Elkins, said on a post earnings call with analysts.<\/p>\n<p>&#8220;Looking at the back half of &#8217;23, clearly, the economic conditions remain uncertain.&#8221;<\/p>\n<p>Norfolk posted an adjusted profit of $3.32 per share for the first quarter, compared with analysts&#8217; average estimate of $3.12 per share, according to Refinitiv data.<\/p>\n<p>Revenue rose 7.4% to $3.13 billion, edging past analysts&#8217; estimates of $3.11 billion.<\/p>\n<p> (Reporting by Amna Karimi and Nathan Gomes in Bengaluru; Editing by Subhranshu Sahu)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/norfolk-southern-expects-economic\/norfolk-southern-train-rests-near-the-university-of-north-carolinas\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0KT-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P0KT-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) -U.S. railroad operator Norfolk Southern Corp took a $387 million charge in the first quarter due to the Ohio freight train derailment and said it expects economic headwinds to weigh on its volume and revenue during the April-June period. Shares of Norfolk, which operates in 22 states and the District of Columbia, slipped 1.1% [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":24500,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-24499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0KT-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=24499"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24499\/revisions"}],"predecessor-version":[{"id":24825,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24499\/revisions\/24825"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/24500"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=24499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=24499"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=24499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}