Norfolk Southern says coronavirus poses financial risks

Written by David C. Lester, Managing Editor
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Norfolk Southern tells SEC that coronavirus could impact 2020 earnings.
Norfolk Southern

Norfolk Southern yesterday added its voice to the chorus of Class 1 railroads that have reported to the Securities & Exchange Commission (SEC) that the coronavirus pandemic could have a significant impact on the railroad’s 2020 financial results. Kansas City Southern, Union Pacific and CSX have already filed the same message with the SEC.

Norfolk Southern said “The COVID-19 pandemic is rapidly developing and generating significant uncertainty in the economy, and it could have a material adverse impact on our results of operations and financial condition, dependent on numerous risks and uncertainties.”

Norfolk Southern also said “The magnitude and duration of the outbreak, its impact on our supply chain partners and general economic conditions, and the extent of social distancing measures and non-essential business shutdowns will influence the demand for our services and affect our revenues. In addition, COVID-19 could affect our operations and business continuity if a significant number of our essential employees, overall or in a key location, are quarantined from contraction of or exposure to the disease or if governmental orders prevent our operating employees or critical suppliers from working.”

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Categories: Class 1, Freight, Intermodal, Railroad News, Regulatory
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