Norfolk Southern takes $387 mln charge in Q1 after Eastern Ohio derailment

April 26 (Reuters) – U.S. railroad operator Norfolk Southern Corp (NSC.N) mentioned on Wednesday it took a $387 million cost within the first quarter after a freight practice derailment in Jap Ohio launched over one million gallons of hazardous supplies into the setting.

“(The fees) don’t replicate any quantities probably recoverable underneath the corporate’s insurance coverage insurance policies,” the corporate mentioned, after reporting adjusted quarterly revenue above analysts’ estimates on the again of sturdy pricing and powerful demand for freight.

Norfolk got here underneath heavy fireplace after considered one of its freight trains carrying hazardous supplies derailed in East Palestine, Ohio in early February.

The state of Ohio sued the railroad operator in March, in search of compensation for damages to the state’s setting, economic system and residents.

Norfolk, which serves 22 states and the District of Columbia, posted an adjusted quarterly revenue of $3.32 per share, in contrast with analysts’ common estimate of $3.12 per share, based on Refinitiv information.

Total quarterly working income rose 7.4% to $3.13 billion, in contrast with analysts’ estimates of $3.11 billion.

Reporting by Amna Karimi and Nathan Gomes in Bengaluru; Modifying by Subhranshu Sahu

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