Norfolk Southern to take charge on telcom

Norfolk Southern to take charge on telcom

Norfolk Southern Corp. plans to record a $80 million write-down in the fourth quarter on its T-Cubed fiber-optic communications unit.

The rail transportation company said in a statement Monday that the write- down will total about $50 million, or 13 cents a share, after taxes.

A company spokesman said the write-down reduces the carrying value of the business to about $30 million.

"This charge recognizes the reduced value of telecommunications assets based on prevailing market conditions in the telecommunications industry as reflected by a recent valuation study," said David Goode, chairman, president and chief executive.

The unit, also known as Thoroughbred Technology & Telecommunications, owns 1, 600 miles of fiber-optic infrastructure on the railroad's eastern rail corridors. The business has "a number" of agreements to provide infrastructure to telecommunications service providers.