By Michael Dabaie
Norfolk Southern Corp. (NSC) said Monday it aims for revenue growth at a compound annual rate of 5% through 2021.
The railroad company said Monday it is unveiling a strategic plan focused on increased productivity, efficiency, and revenue growth, and targeting an operating ratio of 60% percent by 2021.
Norfolk said it is aiming for full year operating ratio improvement in 2019 of at least 100 basis points on its 2018 operating ratio of 65.4%.
The company said it is targeting capital expenditures between 16% and 18% of revenue through 2021 to promote safety, efficiency, and growth.
It is aiming for a dividend payout ratio of 33% and continuance of share repurchases using free cash flow and borrowing capacity
"As we implement precision scheduled railroading, our initiatives are focused on five key principles: serving our customers, managing our assets, controlling our costs, working safely, and developing our people, " Chief Executive James A. Squires said.
Write to Michael Dabaie at firstname.lastname@example.org