Norfolk Southern Faces Financial Strain Amid Ohio Derailment Fallout

The railroad company reported a significant drop in first-quarter profits, grappling with high expenses from the East Palestine incident.

Norfolk Southern's first-quarter net income plummeted to $53 million from $466 million a year earlier, largely due to ongoing costs from the Ohio derailment.
The company incurred $592 million in expenses related to the derailment, offset by $108 million in insurance recoveries.
A $600 million settlement has been reached to resolve class action lawsuits stemming from the derailment, with no admission of liability by Norfolk Southern.
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