CEO: Norfolk Southern Delivering on Commitments Through Successful Execution of Strategic Plan

Norfolk Southern is delivering on commitments to improve corporate performance through successful execution of its strategic plan, the company’s CEO told shareholders.

“We have a sound strategy, and we are producing results that drive sustainable profitability, high-quality growth, and enhanced shareholder value,” CEO James A. Squires said, according to a news release. “We are delivering on our commitments.”

Last year marked the first full year of Norfolk Southern’s five-year strategic plan to operate a faster, lower-cost, and more profitable railroad. Achievements in 2016 included an all-time best operating ratio of 68.9 percent, productivity savings of $250 million, near record levels of network service performance and record locomotive fuel efficiency.

“Through successful execution of our plan, we achieved our key first-year financial and operational targets, and we are well on pace to achieve our 2020 performance goals,” Squires said.

Norfolk Southern is off to a strong start on the second year of the strategic plan, Squires said. He cited 2017 first-quarter records achieved in operating ratio, income from operations, and earnings per share.

The company’s 2020 goals include annual expense savings of more than $650 million; double-digit percentage compound annual growth rate in earnings per share; and an operating ratio – a key measure of operating and financial performance – below 65 percent.

“We are driving growth by providing superior service that optimizes pricing and increases volume and top-line revenue,” Squires said. “We are relentlessly focused on meeting the unique needs of our customers – and we are measuring service excellence as they define it.”

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