Norfolk Reports 4Q:23 and FY: 23 Results

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(Norfolk, 26.Jan.2024) — Norfolk Southern Corporation (NYSE: NSC) announced its fourth quarter and full-year 2023 financial results. For the quarter, income from railway operations was $808mn and diluted earnings per share were $2.32. These fourth quarter results include a $150mn charge associated with the incident in Eastern Ohio inclusive of $76mn in insurance recoveries.

Adjusting for the effects of the incident charge, fourth quarter results included income from railway operations of $958mn and diluted earnings per share of $2.83.

Norfolk Southern President and Chief Executive Officer Alan H. Shaw said, “The fourth quarter marked the end of a challenging, yet transformational year for Norfolk Southern. I’m proud that the team responded with unwavering dedication while continuing to advance our strategy that strikes the necessary balance between service, productivity and growth. We invested in our people, enhanced our service performance and made a safe railroad even safer. Norfolk Southern enters 2024 with positive momentum and a focus on driving further productivity gains and operational discipline through aggressive cost management. We see growth on the horizon, and we are confident in our ability to deliver industry-competitive margins over time.”

Fourth Quarter Summary 

  • Railway operating revenues of $3.1bn, down $164mn, or 5%, compared to fourth quarter 2022. 
  • Income from railway operations was $808mn inclusive of a $150mn charge associated with the Eastern Ohio Incident, a 32% decline compared to $1.2bn in the fourth quarter of 2022. 
    • Adjusting for the Eastern Ohio Incident, income from railway operations was $958mn, down $223mn, or 19%, compared to fourth quarter 2022.
  • Diluted earnings per share were $2.32, a decline of 32% compared to fourth quarter 2022.
    • Adjusting for the Eastern Ohio Incident, diluted earnings per share were $2.83, down $0.59, or 17%, compared to fourth quarter 2022.

2023 Summary 

  • Railway operating revenues were $12.2bn in 2023, down 5%, or $589mn, compared with 2022. 
  • Railway operating expenses were $9.3bn inclusive of a $1.1bn charge associated with the Eastern Ohio Incident, an increase of 17% compared to 2022.
    • Adjusting for the Eastern Ohio Incident, railway operating expenses were $8.2bn, up 3% compared to 2022, driven by higher compensation and benefits, inflation, and ongoing network congestion. 
  • Income from railway operations was $2.9bn inclusive of the $1.1bn charge associated with the Eastern Ohio Incident, down 41% year-over-year.
    • Adjusting for the Eastern Ohio Incident, income from railway operations was $4bn, down 18% compared to the prior year.
  • Diluted earnings per share were $8.02 inclusive of the $1.1bn charge associated with the Eastern Ohio Incident, down 42% compared with 2022. 

• Adjusting for the Eastern Ohio Incident, diluted earnings per share were $11.74, down 15%. 
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