April 7, 2008 11:00 AM, EDT

Norfolk Southern to Take 1Q Charge on Accident Settlement

Eastern freight rail line Norfolk Southern Corp. said Monday it will take a first-quarter charge of 2 cents per share, related to settlement of an accident claim.

NS entered into a confidential settlement Avondale Mills over a lawsuit brought by Avondale arising from a Jan. 6, 2005, rail accident in Graniteville, S.C.

A portion of the settlement will not be reimbursed by insurance and will be recorded in the first quarter as a $13 million expense, Norfolk Southern said.