Norfolk Southern has revealed that the toxic train crash in East Palestine, Ohio, will cost the company $387 million.
The transport company announced Wednesday that its first-quarter profit was $711 million, which factored in a $387 million loss associated with the Eastern Ohio derailment.
"From the beginning, we have been guided by one principle: We are going to do whatever it takes to make it right for East Palestine and the surrounding areas," said Norfolk Southern President and Chief Executive Officer Alan H. Shaw in a statement. "We are making progress every day and I’m proud of our people. Our response reflects our strategy of focusing on long-term priorities and value."
The 50-car derailmenton Feb. 3 resulted in a massive, days-long fire that sent plumes of toxic smoke into the air and prompted evacuations in the town of about 4,700 residents.
Shaw has also promised to support a bipartisan measure to overhaul railroad safety standards.
While the company’s net income for the period dropped by 34% compared to $1.1 billion in the first quarter of 2022, they saw a jump in operating revenue of 7%, or $217 million, compared to last year, according to Norfolk Southern’s report.
The $387 total is an initial estimate of the money the company has spent so far combined with future costs the derailment will bring.
So far, Norfolk Southern has spent $55 million on recovery efforts following the derailment, according to Mark George, the company’s chief financial officer, in remarks during a conference call with investors.
The $387 million loss does not include any potential recoveries that the company may receive under its insurance policies, the company states.
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