Norfolk Southern Corporation announced Friday its fourth quarter and full-year 2023 financial results. For the quarter, income from railway operations was $808 million and diluted earnings per share were $2.32. These fourth quarter results include a $150 million charge associated with the incident in Eastern Ohio inclusive of $76 million in insurance recoveries.
Adjusting for the effects of the incident charge, fourth quarter results included income from railway operations of $958 million 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 $3.1 billion, down $164 million, or 5%, compared to fourth quarter 2022.
Income from railway operations was $808 million inclusive of a $150 million charge associated with the Eastern Ohio Incident, a 32% decline compared to $1.2 billion in the fourth quarter of 2022.
Adjusting for the Eastern Ohio Incident, income from railway operations was $958 million, down $223 million, 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 $12.2 billion in 2023, down 5%, or $589 million, compared with 2022.
Railway operating expenses were $9.3 billion inclusive of a $1.1 billion charge associated with the Eastern Ohio Incident, an increase of 17% compared to 2022.
Adjusting for the Eastern Ohio Incident, railway operating expenses were $8.2 billion, up 3% compared to 2022, driven by higher compensation and benefits, inflation, and ongoing network congestion.
Income from railway operations was $2.9 billion inclusive of the $1.1 billion charge associated with the Eastern Ohio Incident, down 41% year-over-year.
Adjusting for the Eastern Ohio Incident, income from railway operations was $4.0 billion, down 18% compared to the prior year.
Diluted earnings per share were $8.02 inclusive of the $1.1 billion 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%.
-via Press Release
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