(The Associated Press circulated the following article on January 25.)
NORFOLK, Va. — Norfolk Southern Corp.’s first quarter results for 2005 will include a pre-tax charge of between $30 million and $40 million because of a Jan. 6 derailment that left nine people dead.
Norfolk Southern said late Monday it expects its insurance to be adequate to cover settlements from potential lawsuits and claims as a result of the crash in Graniteville, S.C. The wreck happened when a Norfolk Southern train slammed into a parked train. A chlorine tanker ruptured and sent a vapor cloud over the town, causing more than 250 injuries and forcing the evacuation of about 5,400 residents.
The Norfolk-based railroad said the loss estimate does not include fines or penalties that could be imposed.
Norfolk Southern is expected to release its fourth-quarter earnings Wednesday. Analysts surveyed by Thomson First Call predicted the company’s earnings per share would be 63 cents for the quarter and $2.17 for the year.
Norfolk Southern shares rose $1.40, or 4.2 percent, to close at $34.71 in Tuesday trading on the New York Stock Exchange. The stock has traded in a 52-week range of $20.38 to $36.69.