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NS to record charge related to disposal of 300 locomotives, puts up another 400 for sale

Rail News Home Norfolk Southern Railway 4/17/2020 Rail News: Norfolk Southern Railway
image Norfolk Southern Corp. advised yesterday that it will have take a $385 million charge in first-quarter 2020 related to the disposal of about 300 locomotives and the designation of another 400 locomotives for sale. NS attributed the move to its introduction of precision scheduled railroading measures in 2019, which "continues to provide significant benefits to the network operations and has resulted in excess capacity," company officials said in a filing with the U.S. Securities and Exchange Commission. The non-cash charge will reduce Q1 2020 diluted earnings per share by $1.11, they said. NS is scheduled to report Q1 results on April 29, when it also will provide an update on the impact of the COVID-19 pandemic.

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