East Palestine train derailment has now cost Norfolk Southern $1 billion
East Palestine train derailment has now cost Norfolk Southern $1 billion
https://amp.cnn.com/cnn/2023/07/27/investing/norfolk-southern-east-palestine-derailment-costs/index.html
By Chris Isidore, CNN
Published 2:06 PM EDT, Thu July 27, 2023
The costs to Norfolk Southern from the February derailment in East Palestine, Ohio, are now approaching $1 billion, the company reported Thursday.
The company disclosed it had taken another $416 million charge against its second-quarter earnings, mostly to cover the estimated ongoing clean-up costs at the derailment site.
That charge came on top of an earlier $387 million charge during the first quarter, bringing total charges for clean-up and compensation to more than $800 million. Those charges are for money already spent, as well as for estimates of future spending.
In addition, CFO Mark George told investors Thursday that the company estimates it lost between $175 million to $200 million in revenue from business that was diverted to trucks or other railroads by Norfolk Southern customers due to the service disruptions caused by the derailment.
The track where the derailment occurred is on a major route for the railroad, carrying freight between Chicago and the eastern United States. George said service problems continue along that stretch of track.
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