Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home Canadian National Railway - CN


Rail News: Canadian National Railway - CN

CN exceeds earnings expectations in 2Q


CN yesterday reported better-than-expected profit for the second quarter, partly due to cost cutting and improved fuel costs.

The Class I's second-quarter net income increased to $886 million, or $1.10 per share, from $847 million, or $1.03 per share, in the year-ago quarter. All figures are reported in Canadian dollars.

Adjusted earnings per share came in at $1.15, up 12 percent compared with the previous year’s quarter, which beat analysts’ earnings expectations of $1.05 per share.

Second-quarter operating income jumped 8 percent to $1.362 million; revenue remained flat at $3.125 million; carloadings fell by 3 percent to 1.4 million units; and revenue ton-miles declined 7 percent.

CN's operating ratio for the quarter improved by 3.2 points to 56.4, compared with 59.6 in second-quarter 2014.

CN President and Chief Executive Officer Claude Mongeau said the company's "solid" results for the second quarter were "driven by the team's swift action to recalibrate resources and double-down on efficiency, while continuing to improve customer service."

The company reaffirmed its outlook for double-digit adjusted earnings per share growth for the year, compared with 2014’s adjusted diluted earnings per share of $3.76, “despite volume growth that remains constrained by weakness in several markets, as well as challenging year-over-year comparables,” Mongeau said in a press release.

Although CN reports its earnings in Canadian dollars, a large portion of its revenues and expenses is denominated in U.S. dollars. The fluctuation of the Canadian dollar relative to the U.S. dollar affects the conversion of the company's U.S.-dollar-denominated revenues and expenses, company officials said.

By commodity group, revenue for the quarter increased 17 percent for automotive, 8 percent for forest products, 4 percent for petroleum and chemicals, and 2 percent for intermodal. Second-quarter revenue declined 5 percent for metals and minerals, 7 percent for grain and fertilizers, and 26 percent for coal.

Contact Progressive Railroading editorial staff.

More News from 7/21/2015