(Reuters) – U.S. rail operator Norfolk Southern Corp. said Wednesday it took a $387 million charge in the first quarter after a freight train derailment in eastern Ohio released more than a million gallons of hazardous material into the environment.
“(The charges) do not reflect any amounts potentially recoverable under the company’s policies,” the company said after reporting adjusted quarterly profit above analysts’ estimates due to robust pricing and strong freight demand.
Norfolk came under heavy fire after one of its hazardous materials freight trains derailed in East Palestine, Ohio, in early February.
The state of Ohio sued the rail operator in March, seeking compensation for damages to the state̵
7;s environment, economy and residents.Norfolk, which serves 22 states and the District of Columbia, reported adjusted quarterly earnings of $3.32 per share, compared with analysts’ average estimate of $3.12 per share, according to Refinitiv data.
Total quarterly revenue rose 7.4% to $3.13 billion, compared to analysts’ estimates of $3.11 billion.
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