NORFOLK SOUTHERN EXPECTS SPECIAL CHARGE TO FOURTH QUARTER EARNINGS AND CONSIDERS CURRENT SHARE PURCHASE PROGRAM SUSPENSION
NORFOLK SOUTHERN EXPECTS SPECIAL CHARGE TO FOURTH QUARTER EARNINGS
AND CONSIDERS CURRENT SHARE PURCHASE PROGRAM SUSPENSION
NORFOLK, Va., Nov. 14 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today announced that it expects to record a special charge to earnings in the fourth quarter of 1991, upon completing an evaluation of the cost of efficiencies to be gained through proposed new labor agreements and of other possible charges.
Norfolk Southern announced also that it is considering whether to suspend its current share purchase program.
The new labor agreements which the anticipated special charge would cover are expected to accomplish significant reductions in the size of train crews, pursuant to action by a Presidential Emergency Board and a Special Board which required resolution of crew sizes by the end of 1991. Most surplus employees will be entitled to some form of protection with respect to their compensation. Also, a proposed restructuring of previously established productivity funds is expected to settle a significant portion of the obligations related to earlier crew size reductions.
The future benefits of crew consist employment reductions are significant. However, the total cost commitment for accomplishing these efficiencies and any other charges to earnings will materially reduce reported earnings for 1991.
With regard to the stock purchase program, Norfolk Southern previously had announced that its assessment of market conditions and alternative investment opportunities would govern the timing and volume of purchases under its current share purchase program.
In light of these conditions and opportunities, and the cash requirements related to the anticipated fourth quarter special charge, Norfolk Southern is considering whether to suspend the current share purchase program.
/CONTACT: R.C. Fort, Assistant Vice President-Public Relations, 804-629-2714, or J. Donlan Piedmont, Director-Public Relations, 703-981-5407, both of Norfolk Southern Corporation/
(NSC) CO: Norfolk Southern Corporation ST: Virginia IN: TRN SU: CM -- CH002 -- 4282 11/14/91 09:08 EST