It was nearly a year ago when a Norfolk Southern train derailed in East Palestine, Ohio, upending lives in the rural town. Twelve months later, the Atlanta-based railroad is still grappling with fallout from the incident.
Norfolk Southern said Friday its 2023 net income was down 44% compared to 2022, as the railroad has accumulated $1.1 billion in charges so far from the Feb. 3, 2023, derailment of a train carrying hazardous materials.
“Last year was historically challenging,” said Norfolk Southern CEO Alan Shaw during an investor conference call Friday. “The eastern Ohio incident tested our resolve.”
Shaw also disclosed Friday plans to cut management staff to reduce costs. The company aims to cut more than 300 people in the next several months.
Revenue was down 5% in 2023 amid network disruptions — including technology outages — and a “stubbornly weak freight market,” Shaw said.
Its operating expenses were driven up by massive costs for the cleanup of the East Palestine derailment site that continues today, legal expenses and liability, payments to residents who relocated and donations to the community in the surrounding areas in Ohio and Pennsylvania. Atlanta Journal Constitution
