(Source: Norfolk Southern press release, February 11, 2019)
NORFOLK, Va. — Norfolk Southern Corporation (NYSE: NSC) today will provide details of its strategic plan – focused on increased productivity, efficiency, and revenue growth, and targeting an operating ratio of 60 percent by 2021 – at its Investor and Financial Analyst Conference in Atlanta.
“Our strategic plan capitalizes on the strength of our exceptional franchise to lower costs, operate more efficiently, and deliver stronger margins,” said Chairman, President and CEO James A. Squires. “As we implement precision scheduled railroading, our initiatives are focused on five key principles: serving our customers, managing our assets, controlling our costs, working safely, and developing our people. The success of our customers, our employees, and our company will ensure the success of our shareholders.”
Highlights of Norfolk Southern’s financial targets:
• Full year operating ratio improvement in 2019 of at least 100 basis points on our 2018 operating ratio of 65.4 percent.
• Full year operating ratio of 60 percent by 2021.
• Revenue growth at a compound annual rate of 5 percent through 2021.
• Capital expenditures between 16 percent and 18 percent of revenues through 2021 to promote safety, efficiency, and growth.
• Dividend payout ratio of 33 percent and continuance of share repurchases using free cash flow and borrowing capacity.