Shaw: We have the plan and the people in place to deliver on our promises

Norfolk Southern CEO Alan Shaw sat down with CNBC’s Jim Cramer on his Mad Money program Wednesday to discuss Norfolk Southern’s balanced strategy and plan to deliver long-term value.

Shaw explained how Norfolk Southern and its highly qualified board have laid the groundwork for significant margin improvement in 2024. With the right people in place and a strategy balanced on service, productivity, and growth, Shaw projected 400 to 500 basis points of margin improvement.

“We are investing in the long-term,” Shaw said. “We are improving our service product. We’re improving productivity. That’s starting to drive growth for us. So, I’ve got a lot of confidence about where we’re going in the back half of this year and beyond.”

In the two years since Shaw became CEO, Norfolk Southern has seen improvement in several key areas. Velocity has improved 27% under Shaw’s leadership. In 2022, the railroad delivered record revenue, and in 2023, Norfolk Southern was the only Class I railroad to significantly reduce its mainline accident rate.

Cramer, who first interviewed Shaw just days after Shaw took the helm as CEO, said: “I remember the promises you made on this show, and I have followed up and you have delivered on all of those promises and more and I think that's really important.”


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