NS: Q1 financial results in line with preliminary report

Norfolk Southern Corp. today confirmed that its first-quarter 2024 financial results were in accordance with the preliminary results the company announced April 9.

The Class I reported Q1 2024 net income of $53 million, or 23 cents per diluted earnings per share (EPS), down from $466 million, or $2.04 per diluted EPS, in Q1 2023.

NS reported total railway operating revenue of $3 billion for the quarter, down from $3.1 billion a year ago. Income from operations fell 70% to $213 million, compared to $711 million in Q1 2023.

The railroad posted a Q1 2024 operating ratio of 92.9% compared to 77.3% in the previous year's quarter.

NS recognized $592 million and $387 million of expense during the first quarters of 2024 and 2023, respectively, for costs related to the Feb. 3, 2023, NS train derailment in East Palestine, Ohio. The total expense recognized in Q1 2024 includes the impact of $108 million in insurance recoveries, while no insurance recoveries were recorded in Q1 2023.

Any additional amounts recoverable under the company's insurance policies or from third parties will be reflected in future periods in which recovery is considered probable, NS said in its financial statement. No amounts have been recorded related to potential third-party recoveries, which may reduce amounts payable by NS's insurers under applicable insurance coverage, according to the statement.

Meanwhile, NS in Q1 2024 executed a voluntary and an involuntary separation program that will result in a reduction of 350 nonagreement employees by May of this year. "Restructuring and other charges" includes $64 million of costs related to these programs, which primarily consist of separation payments to the affected employees. Also, the company incurred $35 million of costs associated with the March appointment of Chief Operating Officer John Orr.