Norfolk Southern Reports Strong Q2 Earnings Boosted by Cost Cuts and Insurance Payout
The railroad's financial recovery follows significant cost reductions and a $156 million insurance payment related to the 2023 Ohio derailment.
- Norfolk Southern's Q2 revenue rose 2% to $3.04 billion, with merchandise shipping revenue up 4%.
- The company received a $156 million insurance payout, exceeding derailment-related expenses by $65 million.
- Railway operating expenses dropped 20% year-over-year, contributing to a net income of $737 million.
- Norfolk Southern faced a proxy fight with Ancora Alternatives, resulting in three new board members.
- CEO Alan Shaw highlighted $250 million in productivity and safety gains, with further improvements anticipated.
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