ATLANTA, May 15, 2020 /PRNewswire/ -- Despite
economic challenges posed by the COVID-19 pandemic, Norfolk
Southern is well-positioned to safely and successfully weather the
unprecedented situation, CEO James A.
Squires said Thursday at the company's annual meeting of
shareholders.
"We will get through the challenges ahead and emerge as an even
stronger company," Squires said. "We'll continue to manage our
assets well and control our costs. Our emphasis on superior service
will continue to drive our long-term growth strategy. And through
it all, our Norfolk Southern employees will continue to get the job
done safely, with excellence and pride."
Squires addressed shareholders during the company's first
virtual-only annual meeting, a board decision made in light of
public health concerns and social distancing guidance arising from
the COVID-19 pandemic.
In his remarks, Squires expressed confidence in the Norfolk
Southern team, saying the company's agile response to the
coronavirus pandemic demonstrates the railroad's resilience and
unwavering commitment to customers and the communities it serves.
The effort required innovation and collaboration, he noted, and
ranged from equipping departments to work remotely, including most
of Customer Service, to purchasing hand sanitizer from local
distilleries in the midst of a nationwide shortage.
"As they always do in a crisis, our employees responded
heroically," Squires said. "The entire Norfolk Southern team has
rallied around our customers, and we're delivering with the best
service product in the history of our company. We're keeping the
steel wheels moving as we play our part to keep the shelves stocked
and the lights on."
In addition to this strong employee performance, Squires said
the company's Reimagine '21 strategic plan, rolled out in 2019 and
built on the tenets of precision scheduled railroading, is driving
long-term, transformational improvements in operating efficiencies
and customer service. A centerpiece is the railroad's TOP21
operating plan, which has transformed how it operates trains on the
network and contributed to record levels of train performance and
service.
"As a result of our transformation, we've set records for
metrics such as train speed, terminal dwell, and shipment
consistency," Squires said. "We've decongested our yards and road
network, allowing cars to turn quicker in the terminals and trains
to move faster on the network. Our success enabled us to dispose of
703 locomotives that are no longer needed because our network is
more efficient – a strong sign that our strategic plan is
working."
These efficiency gains helped the railroad achieve an adjusted
operating ratio of 63.7% in the first quarter of 2020, when
excluding the charge related to the disposition of locomotives.
While the company has withdrawn guidance for revenue and the
operating ratio in 2020, Squires said the railroad remains
committed to its 2021 goal of driving down the OR to 60%.
Squires said the economic downturn triggered by COVID-19 will
impact the railroad's business, noting that traffic volumes
decreased by 11% in the first quarter of 2020 and continue to trend
downward.
While acknowledging that Norfolk Southern is not immune to
COVID-19 disruptions, Squires reaffirmed his confidence in the
company's overall financial standing, with access to ample
liquidity and the lowest levels of capital expenditures since 2010.
When paired with operational efficiencies and industry-leading
personnel, the company is positioned for future growth
opportunities that will create long-term shareholder value, he
said.
"Norfolk Southern has a history of successfully managing through
business cycles and challenging economic environments," Squires
said. "None of us can predict the severity or duration of this
economic downturn, so we are focused on the factors within our
control. By continuing to execute our strategic plan and provide
superior service to our customers, we will move through this period
successfully and be ready to capture opportunities as the economy
recovers."
Squires' full remarks are posted on the "Invest in NS" section
of the Norfolk Southern website under "Presentations."
In official business, based on preliminary results, shareholders
elected 13 directors for terms expiring in 2021:
- Thomas D. Bell Jr., chairman of
Mesa Capital Partners LLC;
- Mitchell E. Daniels Jr.,
president of Purdue University;
- Marcela E. Donadio, former
partner and Americas oil and gas sector leader of Ernst & Young
LLP;
- John C. Huffard Jr., co-founder
of Tenable Network Security and Tenable Holdings Inc.;
- Christopher T. Jones, former
corporate vice president and president of the technology services
sector of Northrop Grumman Corporation;
- Thomas C. Kelleher, former
president of Morgan Stanley;
- Steven F. Leer, lead director,
former CEO and chairman of Arch Coal Inc.;
- Michael D. Lockhart, former
chairman, president, and CEO of Armstrong World Industries
Inc.;
- Amy E. Miles, former chair and
CEO of Regal Entertainment Group;
- Claude Mongeau, former
president, CEO, and director of Canadian National Railway
Company;
- Jennifer F. Scanlon, president,
CEO, and director of UL;
- James A. Squires, chairman,
president and CEO of Norfolk Southern; and
- John R. Thompson, former senior
vice president and general manager of Best Buy.com LLC.
In other preliminary results, shareholders approved three
proposed amendments to the corporation's amended and restated
articles of incorporation; ratified appointment of KPMG LLP as
independent auditors for 2020; approved an advisory resolution on
the compensation of executive officers; and rejected a proposal
regarding shareholders' right to act by written consent.
About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's
premier transportation companies. Its Norfolk Southern Railway
Company subsidiary operates approximately 19,500 route miles in 22
states and the District of
Columbia, serves every major container port in the eastern
United States, and provides
efficient connections to other rail carriers. Norfolk Southern is a
major transporter of industrial products, including chemicals,
agriculture, and metals and construction materials. In addition,
the railroad operates the most extensive intermodal network in the
East and is a principal carrier of coal, automobiles, and
automotive parts.
Forward-looking statements
Certain statements in this news release may be forward-looking
statements within the meaning of the safe harbor provision of the
Private Securities Litigation Reform Act of 1995. These statements
relate to future events or future performance of Norfolk Southern
Corporation's (NYSE:NSC) ("Norfolk Southern," "NS" or the
"Corporation"). In some cases, forward-looking statements may be
identified by the use of words like "will," "believe," "expect,"
"targets," "anticipate," "estimate," "plan," "consider," "project,"
and similar references to the future. The Corporation has based
these forward-looking statements on management's current
expectations, assumptions, estimates, beliefs, and projections.
While the Corporation believes these expectations, assumptions,
estimates, and projections are reasonable, forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which involve factors or circumstances
that are beyond the Corporation's control, including but not
limited to: general North American and global economic conditions;
changes in energy prices and fuel markets; uncertainty surrounding
timing and volumes of commodities being shipped; changes in laws
and regulations; uncertainties of claims and lawsuits; labor
disputes; transportation of dangerous goods; effects of changes in
capital market conditions; and severe weather. These and other
important factors, including the risks and uncertainties related to
the COVID-19 pandemic and those discussed under "Risk Factors" in
the Corporation's Form 10-K for the year ended December 31, 2019, filed with the Securities and
Exchange Commission ("SEC"), as well as the Corporation's other
public filings with the SEC, may cause actual results, benefits,
performance, or achievements to differ materially from those
expressed or implied by these forward-looking statements. Please
refer to these SEC filings for a full discussion of those risks and
uncertainties we view as most important. Forward-looking statements
are not, and should not be relied upon as, a guarantee of future
events or performance, nor will they necessarily prove to be
accurate indications of the times at or by which any such events or
performance will be achieved. As a result, actual outcomes and
results may differ materially from those expressed in
forward-looking statements. We undertake no obligation to update or
revise forward-looking statements, whether as a result of new
information, the occurrence of certain events, or otherwise, unless
otherwise required by applicable securities law.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/norfolk-southern-adapts-to-covid-19-challenges-forges-ahead-with-strategic-plan-to-reimagine-possible-301060234.html
SOURCE Norfolk Southern Corporation