Norfolk Southern corrects Ancora’s ‘false and misleading statements’

Norfolk Southern filed a presentation with the U.S. SEC addressing the flawed assumptions of Ancora Alternatives highly unrealistic near-term financial targets. Among many other claims, Ancora grossly overestimates the 12-month savings across numerous categories and their “estimated savings” are simply not supported by the mathematical reality. Ancora has unrealistically projected expected savings of $800M over 12 months, resulting in a 62-63% operating ratio, while claiming they would not furlough employees. In Norfolk Southern’s presentation, informed by actual railroading experience and direct industry expertise, the company has outlined what the real savings would be in each cost opportunity Ancora cited. Ancora’s misinformed savings estimates would only amount to $400M, and to achieve the remaining $400M savings in their plan, approximately 2,900 employee furloughs would be required, despite Ancora’s assertions to the contrary.