Norfolk Southern's Q2 results include charge for East Palestine recovery

Norfolk Southern Corp. today reported second-quarter 2023 income from railway operations tumbled 55% to $576 million and net income fell 57% to $356 million compared with the same period a year ago, as the company continued to recover from the Feb. 3 train derailment in East Palestine, Ohio.

NS posted diluted earnings per share of $1.56, down from $3.45 a year ago. Total railway operating revenue declined 8% to $3 billion.

Q2 2023 results include a $416 million charge associated with the ongoing response to the derailment in East Palestine. Similar to the first quarter, the results do not reflect any amounts potentially recoverable under the company's insurance policies, or from other third parties, which would be reflected in future periods, NS officials said in a press release.

Adjusting for the effects of the Eastern Ohio incident charge, Q2 results included adjusted income from railway operations of $992 million and adjusted diluted earnings per share of $2.95 — declines of 22% and 14%, respectively, compared with Q2 2022 results.

"During the quarter, we delivered on our commitments to improve service, invest in safety and resiliency, and enhance the quality of life for our craft railroaders. Each of these are foundational to our strategy and position Norfolk Southern well for the future," said President and CEO Alan Shaw. "We are committed to our long-term strategy and are positioning our franchise to take on volume growth and deliver for our customers."