Norfolk Southern Corporation has announced the promotion of Jason Zampi to Senior Vice President Finance & Treasurer. Zampi, previously Vice President, will now oversee treasury and investor relations, adding to his existing responsibilities in financial planning and analysis. He will report to Mark George, Executive Vice President & Chief Financial Officer.
Norfolk Southern CEO Alan Shaw discusses the ongoing dispute with activist investor Ancora and the proxy advisor firm Glass Lewis’ support for the activists ahead of a May 9th vote. Shaw also provides updates on the railroad’s operational progress and its operating ratio.
Tarentum Borough Council has unanimously passed a resolution urging Norfolk Southern to address the growing number of potholes at the Corbet Street rail crossing. The crossing has become increasingly hazardous for vehicles and pedestrians, and the borough is calling on state officials to press for urgent repairs. Norfolk Southern has acknowledged the concerns and will inspect the crossing in the coming days to assess the necessary repairs.
Norfolk Southern (NSC) has faced challenges since the pandemic, with supply chain disruptions, volatile freight demand, and inflation. The major train derailment in East Palestine, Ohio, added hundreds of millions of costs, including a $600 million settlement. A proxy battle with Ancora Holdings has also brought pressure for significant change. Despite these headwinds, NSC remains a core holding for the author due to its growth potential. The appointment of a new chief operating officer and aggressive operational targets suggest that improvements are underway. Analysts forecast significant EPS growth in the coming years, and the current valuation presents potential upside if NSC achieves its goals.
Norfolk Southern CEO Alan Shaw defended his strategy before investors in the wake of the railroad’s disappointing first-quarter earnings report. Shaw’s strategy involves maintaining a larger workforce to prepare for an eventual rebound in business. However, the investor group Ancora Holdings, which is backing an alternative CEO candidate, Jim Barber, believes this strategy is wasteful and inefficient.
Norfolk Southern Corporation (NYSE: NSC) has declared a quarterly dividend of $1.50 per share on its common stock. The dividend will be payable on July 1, 2023, to shareholders of record as of the close of business on June 15, 2023. This marks the company’s 167th consecutive quarterly dividend since its formation in 1982, reflecting its long-standing commitment to shareholder returns.
