EAST PALESTINE, Ohio (WKBN) – Norfolk Southern reported an initial loss of $387 million associated with costs from the East Palestine train derailment.
The charge was reported along with the company’s first-quarter financial results for the year.
Overall, the railway company earned $1.1 billion in the first quarter, but adjusted for the charge, the company is bringing in $711 million in income.
Diluted earnings per share were $2.04 — down by 34 percent and 30 percent, respectively, compared to the first quarter of 2022.
The financial results do not include any potentially recoverable amount under the company’s insurance policies, which would be reflected in future reports.
Stock in Norfolk Southern is down 15.9 percent year to date.
Since the derailment and release of chemicals in East Palestine, Norfolk Southern has spent money on clean-up around the derailment site, including the removal of contaminated soil and water. The company has also been reimbursing residents who were temporarily evacuated from their homes, as well as the costs of in-home air quality and other tests. Reimbursements also included costs to first responders, whose equipment was damaged during the response to the accident.