Norfolk Southern's Q1 Profits Drop, Merger Hopes Remain

It's April 24th, from coast to coast. This is US News Today, powered by AI. I'm Cory with the story.

Norfolk Southern just reported a 27% drop in first quarter profits, pulling in $547 million or two.

Dollars $43 cents per share, down from $750 million, or $3.31 a year ago.

The hit came from skipping big insurance payouts tied to the East Palestine derailment and extra cost planning a merger with Union Pacific.

That derailment had juiced earnings in past quarters through insurance money, but this time around it didn't show up, knocking earnings per share.

Down 22 cents alongside merger prep, stripped those out, and the railroad would have topped Wall Street's call for $2.51 per share.

Revenue held steady near $3 billion, while expenses climbed 15% last year, and $85 million in. Derailment insurance had padded the bottom line.

A shaky economy cut shipments by 1%, plus brutal weather and jumping fuel prices piled on the pressure.

CEO Mark George shouted out the crew for keeping service tight, cost and check, and customers loyal.

Now on the merger, they're revising their pitch after the surface transportation board bounced the first one for more details.

They aim to refile next Thursday, on this $85 billion combo that would link Norfolk's eastern lines with Union Pacific's western reach, for the country's first true coast to coast rail giant.

And later still got a way of shrinking major free players to 5 ramps up or kills competition, so I stay glued as these tracks converge.