Nebraska-based Norfolk Southern Railroad (
NYSE:NSC,
Forum) showed a 29% drop in its Q4 profits Wednesday on the back of a 6% drop in freight carried.
“We have the right team and the right plan to address the current headwinds and deliver superior value as we move through 2016 and beyond,” CEO Jim Squires told reporters, but it appears that team has some work to do.
The company plans to lay off 2000 people, with 1200 of those to be gone in 2016, as it cuts overtime and brings about new efficiencies. The company expects to make $650 million in savings by 2020, with $130 million this year.
Which is all very ambitious while Canadian Pacific Railway (
TSX:CP,
Forum) is sitting there offering the company $30b in an acquisition offer.
REACTION:
NSC stock is up 1.9% on the day, with a market cap of $21 billion.
CP stock is down marginally.
OUR TAKE:
Seriously,
just take the money.
--Chris Parry
https://www.twitter.com/chrisparry