(NewsNation) — Norfolk Southern said the February train derailment that spilled toxic chemicals in East Palestine, Ohio cost the railroad $803 million, more than double the company’s estimate in April.
The new figure, which comes from the railroad’s second-quarter earnings report released Thursday, includes a $416 million charge in the second quarter. That’s on top of the $387 million charge from the first quarter.
“We probably haven’t seen all of the damage this derailment has done, not just to their bottom line, but to their reputation as well,” said NewsNation business contributor Lydia Moynihan.
Norfolk Southern’s chief financial officer Mark George said it will likely be “quarters, not months” before the railroad knows the final costs related to the incident.
Most of the expenses so far, about 70%, come from environmental cleanup costs. After the derailment, officials released toxic chemicals into the air from five cars that were at risk of exploding. Since then, crews have been working to remove contaminated soil and wastewater from the area.
“This going to take a little bit more time,” George said during the earnings call. “Our current estimates assume the cleanup activity continues into October.”
The other 30% or so comes from legal expenses and community assistance. The railroad’s website says it has provided more than $63 million to support communities impacted by the derailment. Those efforts include $3 million to the East Palestine Fire Department and a $25 million pledge for improvements at the city park.
So far, the railroad said it has paid $287 million in derailment-related costs.
Ashley McCollum, an East Palestine resident, was surprised at the significantly higher cost estimate Thursday, given what she’s seen around the community.
“It’s wild to me because they have done nothing regarding human health,” she said.
McCollum, who’s still living out of a hotel due to safety concerns at her home, said most of the cleanup has been focused on the railroad’s property, rather than the surrounding community.
The company said it distributed over $18 million in direct financial assistance to help more than 10,400 families cover evacuation costs and continue to test the water and air, among other actions.
Other funds, that would compensate East Palestine residents for long-term health effects and decreased home values, are still being negotiated.
The current total also doesn’t include any amount the company may recover from insurance, Norfolk Southern said. The company has also sued other parties involved in shipping the hazardous chemicals, arguing that they bear some responsibility.
On the other side, Norfolk Southern is facing a number of lawsuits related to the incident, including a civil suit from the Justice Department.
Federal officials have said tests show the air and water in town remain safe, but other independent test results have found potentially dangerous levels of dioxins in the soil around the area.
Residents have told NewsNation that they’ve noticed strange symptoms since the incident.
Last quarter the company made $356 million in profit, down from $819 million a year ago. Without including the derailment cost, the railroad said it would have made $673 million, still below Wall Street expectations.
