Urges shareholders to vote "FOR" ONLY Norfolk
Southern's 13 highly qualified nominees on the WHITE proxy
card today
ATLANTA, April 2,
2024 /PRNewswire/ -- Norfolk Southern Corporation
(NYSE: NSC) today sent a letter to shareholders detailing the
strength of its proven management team, who are accelerating the
company's balanced strategy to narrow the operating ratio gap with
peers and deliver sustainable shareholder value. In the letter the
company highlighted:
- CEO Alan Shaw's decisive,
proven leadership in successfully executing Norfolk
Southern's strategic transformation. Shaw has positioned the
company to become the gold standard of safety in the industry,
drive meaningful margin improvement, and outperform peers during
freight recovery cycles, while delivering industry-leading service
for customers and forging strong relationships with key
stakeholders.
- Norfolk Southern's newly appointed COO John Orr is accelerating the
implementation of Norfolk Southern's operating plan. Orr's
operational expertise and leadership has been lauded by industry
leaders, and he has a successful track record of implementing
scheduled railroading and operational improvements at multiple
Class I railroads, including rapidly remediating CPKC's challenged
Mexico operations by implementing
a high-efficiency operating model.
- The significant risks of Ancora's reckless plan and demands
for a wholesale overhaul of management and the board. These
draconian changes would decelerate the momentum of Norfolk
Southern's strategic transformation, force substantial furloughs,
and destroy long-term value for shareholders.
The letter to shareholders and other important information
related to Norfolk Southern's Annual Meeting can be found at
VoteNorfolkSouthern.com. The website also includes video messages
to shareholders from CEO Alan Shaw
and COO John Orr.
The full text of the letter to shareholders follows:
Dear Fellow Shareholder,
You face an important decision at our upcoming Annual Meeting
that will shape the future of Norfolk Southern and your investment
in our company.
Norfolk Southern's board of directors and management team are
working closely together to strengthen our railroad for success in
the near- and long-term, and to deliver value to shareholders. Our
strategy is taking hold. Already, it has catalyzed meaningful
change, and proven its resilience to the significant challenges
Norfolk Southern has faced.
The steps we are currently taking under chief executive officer
Alan Shaw's leadership – including
the recent appointment of John Orr
as chief operating officer – underscore our resolve to accelerate
our progress and close the gap with our peers.
Our Goal and Our Promise Is To:
- Deliver industry-leading, safe service for our
customers
- Drive continued productivity across our operations
- Propel sustainable value creation for our
shareholders
Norfolk Southern's Board urges shareholders to VOTE the WHITE
proxy card FOR ONLY Norfolk Southern's 13 nominees today.
Ancora Alternatives LLC ("Ancora") is attempting to impede the
momentum of our transformation and jeopardize long-term value by
replacing the board and senior management team in order to
implement their plan. The Norfolk Southern board strongly
recommends shareholders reject Ancora's misguided efforts to
implement destabilizing changes during this pivotal transition
period for Norfolk Southern.
At the helm of Norfolk Southern is our experienced, tested, and
responsible management team that is executing a plan in the best
interests of our shareholders:
- Alan Shaw is a proven,
decisive leader, and the right CEO to take Norfolk Southern
forward.
- John Orr's appointment as COO
will accelerate our operational improvements.
- Ancora's ill-informed plan and proposed wholesale overhaul
of management and the board would create significant execution risk
and force substantial furloughs that will ultimately hurt
shareholders.
Alan's Proven Leadership and Commitment to Operational
Excellence
Throughout his tenure, Alan has taken decisive actions that have
improved our business and demonstrated his commitment to
operational excellence through precision scheduled railroading
principles. When Alan stepped into the CEO role in May 2022, he quickly reoriented the company's
strategy and improved operating performance.
"Our strategy unlocks shareholder value by
adopting a modern approach to PSR that delivers
industry-competitive margins and top-tier EPS and revenue growth by
balancing service, productivity, and growth, with safety at its
core."
– ALAN
SHAW, Norfolk Southern President and CEO
In 2022, despite significant industry-wide challenges, Alan
and his management team delivered:
- $12.7 Billion record
railway operating revenue
- Low ~60% operating ratio range – closing the gap with
Class 1 peers
- 14% improvement in train speed in Q4 2022
Alan again proved his leadership following the East Palestine derailment by supporting the
needs of the community while protecting the franchise and
shareholders. With the support of the board, Alan accelerated
investments in safety and made fundamental changes to our operating
processes. These investments enhanced our position to deliver
long-term growth, and are driving industry-leading safety results
and garnering strong support from our customers, regulators, and
union leaders. Strong endorsements from our employees and
customers, and cooperative relationships with our regulators,
strengthen our ability to deliver long-term shareholder value.
Stakeholders Support Norfolk Southern's Strategy and
Leadership1
"We have been encouraged by recent data
showing that Norfolk Southern has experienced a 34 percent
reduction in the rate of mainline derailments in the last year.
Less encouraging is the fact that data for 2023 suggest that
Norfolk Southern is alone among the Class I railroads to achieve
significant reductions in the rate of mainline derailments this
past year."
– PETE
BUTTIGIEG, U.S. Secretary of
Transportation
"Norfolk Southern has stepped up to the plate
when it comes to investing in East
Palestine and doing what's right to ensure the community
continues to thrive well into the future. Alan Shaw and his team have been extremely
responsive and eager to have difficult conversations about the
health and safety of the residents and the economic recovery
process. I look forward to continuing to work with the NS team
in their commitment to the residents of East Palestine and surrounding Ohio communities."
– MONICA
BLASDEL, Ohio State Representative
"Replacing Mr. Shaw with Ancora's proposed
candidate would be a tremendous mistake and a detrimental step for
Norfolk Southern, its shareholders, and the entire Class I freight
rail industry…The improvements that Mr. Shaw has made and that
stakeholders, including labor, are asking for will help retain
shareholder value in the long term."
– GREG
REGAN, President, Transportation Trades Department,
AFL-CIO
"Since the derailment last year, NS' CEO has
risen to the occasion and, through his leadership, NS has become a
safer, more efficient and customer focused company again."
– JERRY G.
STURDIVANT, BLET General Chairman, NS-Southern
Lines GCA
Given this substantial progress, the company can now focus on
driving industry-competitive margins, as well as top-tier revenue
and earnings growth, while maintaining our steadfast commitment to
quality service and safety. We expect to deliver:
- 64% to 65% operating ratio in 2H 2024, 400+ basis point
improvement year-over-year2
- Sub-60% operating ratio by 2026 – 20273
With the board and Alan's hiring of John
Orr as COO, we have even more confidence in our ability to
achieve our near- and long-term operating and financial
targets.
Accelerating Performance with Operations Expert John
Orr
As he has demonstrated many times throughout his nearly 40-year
career in the railroad industry, John's leadership will enhance
execution and accelerate the implementation of our operating
plan.
Orr's Track Record Is In a Class of Its Own
John is an expert and award-winning thought leader in
precision scheduled railroading and brings a proven track record of
improving operations at multiple Class I railroads in regions
spanning Canada, the U.S., and
Mexico. His accomplishments
include:
- Spearheaded turnaround of CPKC Mexico operations by
successfully implementing a high-efficiency operating model,
driving a 65% improvement in velocity over four months.
- Designed and implemented a precision scheduled
railroading strategy at KCS that improved safety, service, and
productivity.
- Drove substantial operating improvements as senior vice
president and chief transportation officer at CN, and also served
as chief safety and sustainability officer.
John is a firm believer in our strategy and, in the nearly two
weeks since his appointment, has spent time in the field assessing
our network firsthand and identifying key operational priorities,
including:
- Executing a Safety Blitz to reinforce best practices and
set the tone for the safety culture he has been associated with for
his whole career;
- Assembling a Task Force and War Room in our
Network Operations Center to assess network-wide resource
utilization through white-boarding exercises to drive out
waste;
- Completing a Heat Map of the network to find bottlenecks
and identify where delays are occurring in critical corridors that
are draining resources; and
- Identifying two of our major hump yards as 'High Performance
Terminals,' where he has line of sight to 33% improvement in
dwell time in the next 60 days.
We are confident that John's expertise will help us achieve new
levels of safety, service, growth, and operating efficiencies.
Praise for John Orr is
Unanimous and Strong4
"I have had the pleasure to serve and lead with
John [Orr] directly or indirectly
for over the last two decades. His strong operating acumen and
leadership capabilities has enabled him to build a strong team
currently leading our CPKC Mexico Operations."
– KEITH
CREEL, CPKC President and CEO
"John Orr is
one of the most respected railroaders in the industry, with
decades of hands-on experience leading successful operating plans.
[…] Having worked side by side with John, I am confident that his
strategic vision, steadfast commitment to safety, and deep
expertise will make him a tremendous addition to Norfolk Southern's
team."
– PATRICK
OTTENSMEYER, Former KCS President and CEO
"Both John Orr and the transportation team and
our new VP of Engineering Raj Gupta had a big task, and their teams
delivered. […] In closing, John and the team are working
extremely hard to drive these results. And while we have lots of
volume to move, their railroad experience in moving it is second to
none."
– MIKE
CORY, COO of CSX, Former COO of CN
"Orr has a solid track record of operational
excellence and, with four decades of broad industry experience, is
clearly one of the most effective operating leaders in the rail
sector. I've worked closely with John at CN as we first
implemented scheduled railroading with a more customer-centric
agenda, and I can vouch for his unwavering commitment to safety.
I'm confident that he will help the NS team deliver on its
balanced strategy to drive top-tier revenue and earnings growth at
industry-competitive margins."
– CLAUDE
MONGEAU, Former CN President and CEO, Current
Norfolk Southern Independent Director
"We believe Orr has a strong track record in the
industry as a proven operator implementing scheduled railroading,
including his role in the task force he led to improve CPKC's
operations in Mexico, and we
are constructive on the hire and Orr's ability to improve Norfolk's
operations."
– JP MORGAN
"…Mr. Orr has extensive PSR operating experience
over a 40-year career – much of which was with the late
Hunter Harrison. We hold in high
regard Mr. Orr's PSR expertise, and view his appointment to COO
positively."
– RBC CAPITAL MARKETS
"The arrival of Mr. Orr puts greater
confidence in the timing of a potential operating improvement,
and now allows NSC to provide investors with an acceleration of the
operating margin outlook for a prior range of 100-150 basis points
a year to 400 basis points in the second half of 2024 alone. This
would bring NSC's operating margins within striking distance of
industry peers within a year."
– VERTICAL RESEARCH PARTNERS
Orr Drove Rapid Improvements in CPKC's Mexico
Operations
As CPKC's executive vice president and chief transformation
officer, John led the optimization of operations following CP's
acquisition of KCS in 2021. One of his many achievements in this
role was rapidly remediating the challenged Mexico operations by implementing a
high-efficiency operating model.
The operational results clearly show John's swift and positive
impact during this short time:5
- 31% network speed improvement
- 14% average terminal dwell improvement
- 22% car miles per car day improvement
- 10% locomotive productivity improvement
Orr is Recognized for Rapidly Delivering Successful
Outcomes6
"John Orr is
leading the team [and] leading the charge in Mexico, [he] had a lot of experience,
obviously, from his previous experience as the COO of KCS and KSC
de Mexico. […] We're seeing
progress across all the operating metrics, train speed,
terminal dwell, car miles for care, locomotive productivity,
service experience for the customer."
– KEITH
CREEL, CPKC President and CEO (9.13.23)
"The Mexico
task force led by John Orr is
working to fully implement PSR across legacy KCSM after initially
working on restoring service levels and resiliency. The team
has identified opportunities to drive additional value with more
asset turns that will require less than $100mm of capital
investment and current car miles per day are up +30% while GTMs and
throughput in Mexico are at the
highest GTMs per day level in KCSM history."
– JP MORGAN (3.14.24)
"Since the appointment of a special task
force led by John Orr in late July,
the Mexican operations have demonstrated steady improvement. We
see significant runway for additional gains as the company
identifies bottlenecks/inefficiencies and continues to deploy
solutions."
– BMO CAPITAL
MARKETS (11.12.23)
Orr Improved Safety, Service, and Productivity at KCS
Before CPKC, John shaped and guided precision scheduled
railroading initiatives at KCS with a relentless focus on improving
service. Under his leadership, KCS saw:
- 41% mainline accident rate improvement
- 11% dwell time improvement
- 1% train speed improvement
But don't take our word for it – here is Ancora's own nominee,
Sameh Fahmy, in 2021, praising
John's work at KCS:7
"John and the team have been unbelievably
focused. That exercise in Monterrey that John talked about was very
intense, and we have a lot of customers around the Monterrey area. And you can have the trip as
fast as you can from origin to destination, but if you don't get it
to the industry when they need it, then it doesn't make any
difference."
"Velocity is really being improved now with
significant change in processes. And John came in, and he is
bringing in a lot of fresh ideas and a lot of intensity and
scrutiny train by train, why is it waiting, and all the rest at
Laredo yard. And we changed from 6-hour windows to 4-hour
windows this week, which is something we have been working on for 2
years. So, a lot of this is coming together, and the yard
inventories are coming down. All that does is improves the
locomotive utilization."
It is clear that despite Ancora's statements to the contrary,
John Orr is well known as an
effective and successful operator. In addition to their misleading
claims on Orr's background, Ancora has made highly inaccurate
claims regarding our agreement with CPKC in connection with
appointing Orr, and the considerations related to the Meridian
Speedway and the Meridian Terminal.
The agreement specifically addresses only domestic Intermodal
between Dallas and the Southeast,
which is a minority of our business (~25%) on the Speedway and
accounts for only approximately 1% of Norfolk Southern's overall
revenue. The Meridian Speedway agreements ensure Norfolk Southern
maintains a competitive advantage in having the fastest and highest
capacity rail route for transcontinental intermodal traffic between
the Southwestern U.S. and the Southeast via Meridian, while
providing CPKC with flexibility to move other Intermodal traffic
along the Meridian Speedway corridor to and from the Dallas market. The revised agreement is by
no means a consequential concession. Additionally, Norfolk Southern
expects to drive long-term performance gains as a result of Orr's
operational expertise.
Ancora's Misguided Strategy Would Impact All
Stakeholders
Fundamentally, Ancora is attempting to recycle a slash-and-burn
playbook that shows their clear lack of understanding of the
current regulatory, labor, and competitive environments. This,
combined with the wholesale management and board change they are
pushing – including ousting our CEO, COO, independent chair, and
several committee leads – would introduce significant risk to the
execution of our strategy, delay John
Orr's ability to identify and pursue key operational
priorities, and destroy long-term shareholder value.
The fact is that the math around Ancora's short-term targets,
which were announced without a tangible, strategic plan to achieve
them, exposes Ancora's limited familiarity with our business and
the broader railroad industry.
The Reality of Ancora's Detrimental Plan
Targeting a 60% operating ratio (~$1.2
billion of improvement) in 13 - 14 months would:
- Require ~1,500 – 2,000 employee furloughs in the first
year, despite Ancora's assertion that they would not furlough;
- Which would compromise and reverse our safety
improvements; and
- Result in increased scrutiny and punitive action from
regulators, including the STB and FRA.
This reckless approach would also lead to:
- Poor service;
- Missed growth opportunities (particularly during
economic recoveries); and
- Damaged relationships with customers.
It is not surprising to us that Jim
Barber would endorse these targets, as he has never been a
CEO, has no railroad experience, and doesn't know enough about our
industry to see the risks of Ancora's slash-and-burn timetable.
Conversely, Alan is a seasoned, career railroader, and he and
the management team have developed a strategy that is carefully
calibrated to narrow the margin gap through productivity and
establish the gold standard in industry safety, while maintaining
an appropriate level of resources to capture outsized gains during
an economic upcycle.
Regulators and Government Officials are AGAINST Ancora and
FOR Norfolk Southern8
"In fact, the rapid reduction in OR
championed by Ancora can only be accomplished by new major
reductions in the workforce. Indeed, Ancora rejects NS' new
long-term growth strategy and is particularly harsh on NS' focus on
all important intermodal traffic. Clearly, their plan is to
install a CEO ordered to reverse Norfolk Southern's recently
instituted corporate strategy to maintain a resilient workforce and
to invest more in infrastructure to grow the railroad's capacity
long term."
– MARTIN J.
OBERMAN, Surface Transportation Board
Chairman
"Sacrificing the U.S. freight-rail network's
long-term viability for short-term gain would be tragic. And
the consequences would be felt not only by the countless businesses
that rely on rail transportation, but the American consumer who
would ultimately pay higher prices. In the end, I hope long-term
investors will realize that this was no way to run a railroad and
confront these activist few who, if left unchecked, will no doubt
make a quiet exit after fleecing the railroad and our national
supply chain."
– ROBERT
PRIMUS, Member of the Surface Transportation
Board
"While I recognize NS for the meaningful steps
and results seen so far, often in notable contrast to industry
peers, I want to emphasize the importance of a durable and lasting
path forward that continues to prioritize safety. Any
backsliding, as a result of a change in leadership or otherwise, on
the safety-oriented path you have laid out and communicated to us
will likely attract renewed oversight attention from my office as
we pursue our safety mission."
– AMIT
BOSE, Administrator of the Federal Railroad
Administration
Ancora Has Refused to Settle and Is Insistent on Wholesale
Change
We have remained open to finding a reasonable resolution with
Ancora. We interviewed all of their proposed board nominees, and
offered settlements that included significant board representation
on multiple occasions. However, Ancora was adamant that any
resolution would be predicated on Norfolk Southern terminating our
CEO, who is delivering results and executing on our transformation
at a critical moment for Norfolk Southern. Simply put, Ancora's
nominees are tasked with, and proxies for, a single objective –
wholesale management and board change that would cede control of
Norfolk Southern to Ancora and place our strategy and your
investment at risk. Norfolk Southern's shareholders should take
seriously such a risk.
Vote The White Proxy Card Today
Norfolk Southern has the right board and management team in
place to continue delivering on our strategic transformation, with
the precision scheduled railroading expertise and experience
necessary to enhance operating performance and strengthen Norfolk
Southern's industry leadership for years to come.
We strongly urge you vote for the entire slate of 13 highly
qualified and experienced Norfolk Southern director
nominees. Your vote is extremely important, no matter how
many shares you own. Please use the enclosed WHITE proxy
card to vote FOR ONLY Norfolk Southern's 13 nominees
today.
Thank you for your continued support and investment in Norfolk
Southern.
Sincerely,
The Norfolk Southern Board of Directors
Your Vote is Important
Norfolk Southern believes all of its 13 nominees are uniquely
qualified to oversee the company's strategy, drive sustainable
value, and hold management accountable. Norfolk Southern
strongly urges shareholders to protect their investment by VOTING
the WHITE proxy card FOR ONLY Norfolk Southern's 13
nominees.
Please simply DISCARD any Blue proxy card you may receive
from Ancora. If you inadvertently voted using a Blue proxy card,
you may cancel that vote simply by voting again TODAY using the
company's WHITE proxy card. Only your latest-dated vote will
count!
If you have any
questions or require any assistance with respect to
voting your shares, please contact our proxy solicitor:
|
|
INNISFREE M&A
INCORPORATED
Shareholders may call:
1 (877) 750-9496 (toll-free from the U.S. and Canada)
+1 (412) 232-3651 (from other countries)
|
About Norfolk Southern
Since 1827, Norfolk Southern
Corporation (NYSE: NSC) and its predecessor companies have safely
moved the goods and materials that drive the U.S. economy. Today,
it operates a customer-centric and operations-driven freight
transportation network. Committed to furthering sustainability,
Norfolk Southern helps its customers avoid approximately 15 million
tons of yearly carbon emissions by shipping via rail. Its dedicated
team members deliver more than 7 million carloads annually, from
agriculture to consumer goods, and Norfolk Southern originates more
automotive traffic than any other Class I Railroad. Norfolk
Southern also has the most extensive intermodal network in the
eastern U.S. It serves a majority of the country's population and
manufacturing base, with connections to every major container port
on the Atlantic coast as well as major ports in the Gulf of Mexico and Great Lakes. Learn more by
visiting www.NorfolkSouthern.com.
Important Additional Information and Where to Find
It
The Company has filed a definitive proxy statement (the "2024
Proxy Statement") on Schedule 14A and a WHITE proxy card with the
Securities and Exchange Commission (the "SEC") in connection with
the solicitation of proxies for its 2024 Annual Meeting of
Shareholders (the "2024 Annual Meeting"). SHAREHOLDERS ARE STRONGLY
ADVISED TO READ THE COMPANY'S 2024 PROXY STATEMENT (INCLUDING ANY
AMENDMENTS OR SUPPLEMENTS THERETO), THE WHITE PROXY CARD AND ANY
OTHER DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may
obtain a free copy of the 2024 Proxy Statement, any amendments or
supplements to the 2024 Proxy Statement and other documents that
the Company files with the SEC from the SEC's website at
www.sec.gov or the Company's website at
https://norfolksouthern.investorroom.com as soon as reasonably
practicable after such materials are electronically filed with, or
furnished to, the SEC.
Certain Information Regarding Participants in
Solicitation
The Company, its directors and certain of its executive officers
and employees may be deemed participants in the solicitation of
proxies from shareholders in connection with the matters to be
considered at the 2024 Annual Meeting. Information regarding the
direct and indirect interests, by security holdings or otherwise,
of the persons who may, under the rules of the SEC, be considered
participants in the solicitation of shareholders in connection with
the 2024 Annual Meeting is included in Norfolk Southern's 2024
Proxy Statement, filed with the SEC on March
20, 2024. To the extent holdings by our directors and
executive officers of Norfolk Southern securities reported in the
2024 Proxy Statement for the 2024 Annual Meeting have changed, such
changes have been or will be reflected on Statements of Change of
Ownership on Forms 3, 4 or 5 filed with the SEC. These documents
are available free of charge as described above.
Cautionary Statement on Forward-Looking
Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, as amended.
These statements relate to future events or our future financial
performance, including statements relating to our ability to
execute on our strategic plan and our 2024 Annual Meeting and
involve known and unknown risks, uncertainties, and other factors
that may cause our actual results, levels of activity, performance,
or our achievements or those of our industry to be materially
different from those expressed or implied by any forward-looking
statements. In some cases, forward-looking statements may be
identified by the use of words like "may," "will," "could,"
"would," "should," "expect," "plan," "anticipate," "intend,"
"believe," "estimate," "project," "consider," "predict,"
"potential," "feel," or other comparable terminology. The Company
has based these forward-looking statements on its current
expectations, assumptions, estimates, beliefs, and projections.
While the Company believes these expectations, assumptions,
estimates, and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which involve factors or circumstances
that are beyond the Company's control. These and other important
factors, including those discussed under "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2023, as well as the Company's
subsequent filings with the SEC, may cause actual results,
performance, or achievements to differ materially from those
expressed or implied by these forward-looking statements. The
forward-looking statements herein are made only as of the date they
were first issued, and unless otherwise required by applicable
securities laws, the Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
Non-GAAP Financial Measures
This document includes the presentation and discussion of
non-GAAP operating ratio. This figure adjusts our GAAP financial
results to exclude the effects of the direct costs resulting from
the East Palestine incident. We
use this non-GAAP financial measure internally and believe this
information provides useful supplemental information to investors
to facilitate making period-to-period comparisons by excluding the
2023 costs arising from the East
Palestine incident. While we believe that this non-GAAP
financial measure is useful in evaluating our business, this
information should be considered as supplemental in nature and is
not meant to be considered in isolation from, or as a substitute
for, the related financial information prepared in accordance with
GAAP. In addition, this non-GAAP financial measure may not be the
same as similar measures presented by other companies. See below
for a reconciliation of the 2023 non-GAAP operating ratio figures
provided in this document to GAAP operating ratio. With respect to
projections and estimates for future non-GAAP operating ratio, the
Company is unable to predict or estimate with reasonable certainty
the ultimate outcome of certain items required for the GAAP measure
without unreasonable effort. Information about the adjustments that
are not currently available to the Company could have a potentially
unpredictable and significant impact on future GAAP
results.
The following table adjusts our 2023 GAAP financial results to
exclude the effects of the East
Palestine incident. The income tax effects of this non-GAAP
adjustment were calculated based on the applicable tax rates to
which the non-GAAP adjustment related:
|
Non-GAAP
Reconciliation for 2023
|
Reported
(GAAP)
|
East Palestine
Incident
|
Adjusted
(non-GAAP)
|
($ in millions,
except per share amounts)
|
Income from railway
operations
|
$2,851
|
$1,116
|
$3,967
|
Income taxes
|
$493
|
$270
|
$763
|
Net income
|
$1,827
|
$846
|
$2,673
|
Diluted earnings per
share
|
$8.02
|
$3.72
|
$11.74
|
Railway operating ratio
(percent)
|
76.5
|
(9.1)
|
67.4
|
1 Taken from publicly available sources. Permission
to use quotes was neither sought nor obtained.
2 The operating ratio figures are based on non-GAAP
operating ratio, which excludes the impact of direct costs
resulting from the East Palestine
incident. See "Non-GAAP Financial Measures" below for information
regarding the definition and reconciliation to GAAP operating
ratio.
3 The operating ratio improvements represent non-GAAP
operating ratio measures. See "Non-GAAP Financial Measures" below
for information regarding the definition and reconciliation to GAAP
operating ratio measures.
4 Taken from publicly available sources. Permission to
use quotes was neither sought nor obtained.
5 From July to October
2023.
6 Taken from publicly available sources. Permission to
use quotes was neither sought nor obtained.
7 Taken from publicly available sources. Permission to
use quotes was neither sought nor obtained.
8 Taken from publicly available sources. Permission to
use quotes was neither sought nor obtained.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/norfolk-southern-outlines-management-teams-progress-to-accelerate-balanced-strategy-and-drive-productivity-302105404.html
SOURCE Norfolk Southern Corporation