Norfolk Southern reported a 5% decline in revenue for the fourth quarter of 2023, primarily due to lower fuel surcharge revenue and intermodal storage fees.
The company expects modest volume growth in 2024, driven by gains in steel shipments and continued strength in automotive production. However, the weak truck market may limit intermodal price opportunities.
Norfolk Southern aims to achieve industry-competitive margins through a balanced strategy of safe service, productivity improvement, and smart growth.
The company plans to reduce management headcount by approximately 7% in 2024 to streamline its cost structure and eliminate inefficiencies.
Norfolk Southern experienced higher-than-planned service recovery costs in Q4 2023, but is actively working to reduce crew-related expenses and improve overall service levels.
The acquisition of CSR is expected to temporarily suspend share repurchases while the company absorbs the asset and brings credit metrics back into target range.