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Rail News Home Canadian National Railway - CN


Rail News: Canadian National Railway - CN

CN posts 1 percent dip in Q3 net income


CN reported third-quarter net income fell 1 percent to CA$958 million, while diluted earnings per share rose 2 percent to CA$1.27 compared with third-quarter 2016's financial results.

Revenue for the quarter rose 7 percent to CA$3.2 billion; operating income climbed 4 percent to CA$1.5 billion; and adjusted net income increased 2 percent to CA$989 million compared with the same period a year ago, according to a company press release.

The company attributed the revenue increase mainly to higher traffic in overseas intermodal, frac sand, coal and petroleum coke exports, and Canadian grain, as well as freight-rate increases and higher applicable fuel surcharge rates. The revenue increase was partly offset by the negative translation impact of a stronger Canadian dollar.

CN posted an operating ratio of 54.7 percent for the quarter, an increase of 1.4 points from the operating ratio in Q3 2016.

The Class I reported that revenue ton-miles rose 10 percent and carloadings increased 11 percent during the quarter compared with last year's performance.  Year over year, operating expenses were up 10 percent to nearly CA$1.8 billion.

"CN delivered strong third-quarter financial results as we continued to see increased demand across key business segments such as frac sand, intermodal, coal and Canadian grain," said CN President and Chief Executive Officer Luc Jobin.

To meet the demands of growth opportunities, CN is increasing its infrastructure and equipment investments by CA$100 million, for a total capital program worth CA$2.7 billion for 2017, Jobin said.

"During the third quarter, and continuing through the rest of the year, we've been hiring across our network, particularly in Western Canada, as we remain focused on delivering superior service to our customers," Jobin said.

Additionally, the company is reaffirming its 2017 adjusted diluted earnings per share of CA$4.95 to CA$5.10, compared to last year's adjusted EPS of CA$4.59, he said.

Contact Progressive Railroading editorial staff.

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