This story originally appeared from Trains.com.
ATLANTA — Norfolk Southern (NYSE: NSC) posted third-quarter earnings from rail operations of $1.6 billion, along with an operating ratio of 47.7% and diluted earnings per share of $4.85, the railroad announced Tuesday.
Adjusted results to exclude the impact of line sales, costs of the East Palestine, Ohio, derailment, restructuring and other charges show operating income of $1.1 billion. That was an increase of $198 million, or 22%, from the third quarter of 2023. The adjusted operating ratio was 63.4%, while diluted earnings per share were $3.25.
Sales of two lines during the quarter resulted in cash proceeds of nearly $400 million and gains of $380 million, the railroad said, while insurance recoveries related to the East Palestine incident exceeded incremental costs for the second consecutive quarter.
“The Norfolk Southern team continues to build momentum, producing strong results for our shareholders and customers, and delivering on our safety culture for our employees,” Norfolk Southern CEO Mark R. George said in a statement. “Working together, our team drove productivity and grew volumes while demonstrating resiliency in dealing with weather challenges. Thanks to our team’s hard work, we delivered sequential and year-over-year margin improvement putting us on track to achieve our adjusted operating ratio targets for the second half and full year 2024, and we are well positioned for long-term value creation.”
This is a developing story.