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Rail News: Canadian National Railway - CN
CN reports 'solid' growth, record revenue in Q3
(Editor's note: This story was updated from an earlier version to correct several figures previously reported in "millions.")
CN reported yesterday its third-quarter net income rose 18.4 percent to CA$1.1 billion from CA$958 million in the same period a year ago.
Diluted earnings per share (EPS) in the quarter increased 21 percent to CA$1.54 over the Q3 2017 total. Adjusted net income climbed 11 percent to CA$1.1 billion, while adjusted diluted EPS climbed 15 percent to CA$1.50, CN officials said in a press release.
CN posted a 14 percent increase in Q3 revenue to CA$3.7 billion, as the Class I moved higher volumes in the quarter. Revenue ton-miles were up 4 percent and carloadings were up 3 percent, company officials said.
Company officials described the quarter's results as "solid top-line growth with record revenues."
By commodity, revenue increased year over year for petroleum and chemicals by 25 percent; coal, 25 percent; intermodal, 8 percent; and automotive, 3 percent. Revenue rose 15 percent in each of the following categories: grain and fertilizers, forest products, and metals and minerals.
CN attributed the revenue increase primarily to higher applicable fuel surcharges, freight rate increases, the positive translation impact of a weaker Canadian dollar and higher volumes.
CN's operating income in the quarter jumped 8 percent to CA$1.5 billion and operating expenses rose 19 percent to CA$2.2 billion. However, the Class I’s operating ratio rose 2.3 points in Q3 to 59.3 percent compared with the same 2017 period.
CN also announced that 22 of 27 capacity expansion projects have been completed this year.
"Our dedicated engineering team delivered, putting more than 80 percent of our infrastructure expansion projects fully in service at a time when the network was under heavy traffic," said President and Chief Executive Officer JJ Ruest.
The Class I sees "strong opportunities ahead, across multiple existing rail commodities and new supply-chain services," Ruest added.
"The balance of our expansion projects remains on track for completion before winter and our one team is energized to execute our proven operating model as we meet the growing economic needs of our customers," he said.
Moreover, CN still aims to deliver 2018 adjusted diluted EPS in the range of CA$5.30 to CA$5.45, versus last year's adjusted diluted EPS of CA$4.99.
Contact Progressive Railroading editorial staff.