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.






Rail News Home Financials

10/21/2003



Rail News: Financials

CN bucks stronger Canadian dollar to achieve favorable third-quarter, nine-month financial results


advertisement

On Oct. 21, Canadian National Railway Co. reported encouraging third-quarter and year-to-date financial results despite a strengthening Canadian dollar vs. the U.S. dollar, which helped reduce total revenue $90 million during the quarter and $191 million during 2003's first nine months. CN converts U.S.-dollar denominated revenue and expenses into Canadian dollars.

During the quarter, the railroad increased net income 10 percent to $294 million and decreased operating expenses 6 percent to $959 million compared with $268 million and $1 billion, respectively, in third-quarter 2002. The Class I also maintained its operating ratio at 67.9, which rose 0.1 point compared with the same 2002 period.

"[The quarter was] powered in large measure by increased intermodal revenues, the recovery in Canadian grain shipments following last year's drought, a solid story on expense control and favorable tax adjustments," said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement. "In the months ahead, the Canadian dollar will remain a challenge, but we anticipate continued strength in Canadian grain shipments and a gradual improvement in North American economic output."

During the year's first nine months, CN increased net income 1.6 percent to $790 million and decreased operating expenses 2 percent to $3.10 billion compared with $778 million and $3.18 billion, respectively, during the same 2002 period. However, operating income dropped 8 percent to $1.3 billion, total revenue declined 4 percent to $4.4 billion and CN's operating ratio worsened 1.3 points to 71.1 compared with last year.

The stronger Canadian dollar helped reduce nine-month operating and net income $75 million and $37 million, respectively.



Contact Progressive Railroading editorial staff.

More News from 10/21/2003