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Rail News: Financials

Descending telecommunication-asset values to dampen NS' fourth-quarter earnings


On Dec. 17, Norfolk Southern Corp. announced it will subtract a pre-tax charge of about $80 million from its fourth-quarter earnings — reducing quarterly net income about $50 million — because of some declining telecommunication-asset values.

"This charge recognizes the reduced value of telecommunications assets based on prevailing market conditions in the telecommunications industry as reflected by a recent valuation study," said NS Chairman, President and Chief Executive Officer David Goode in a prepared statement. "Norfolk Southern remains committed to its participation in the telecommunications industry, which allows us to leverage our assets to participate in the future development of telecommunications infrastructure."

NS owns Thoroughbred Technology and Telecommunications (T-Cubed), which controls and offers to telecommunication service providers 1,600 miles of fiber-optic infrastructure on the Class I's eastern rail corridors.

On Jan. 28, the railroad plans to report fourth-quarter financial results in New York City.

Contact Progressive Railroading editorial staff.

More News from 12/17/2003