Canadian National said that during the second quarter of 2016 it saw its profit slide 5 percent, its revenue drop by 9 percent and its traffic decline by 12 percent.
The operating ratio was 54.6 percent, which was 1.9 points lower than the second quarter of 2015, helped by a 12 percent cut in operating expenses.
“CN continued to face a very challenging volume environment in the second quarter and maintained strong discipline in realigning resources to keep them in line with reduced freight demand,” President and CEO Luc Jobin said during an investor’s call.
At 4 percent, forest products was the only traffic category to show an increase. Coal, metals and minerals, petroleum and chemicals, and grain and fertilizers were all down by double-digits.
CN said it expects traffic volumes to improve for the rest of the year in lumber, automotive, refined petroleum products and Canadian grain.
It does not expect better traffic numbers in such areas as international intermodal traffic or in such energy-related traffic as crude oil, frac sand, and drilling pipes.
One bright spot that CN pointed out was an expectation of rising international intermodal business next year due to it having signed contracts with shippers in China.
Tags: Canadian National, CN CEO Luc Jobin, CN financial results, CN freight statistics, CN freight traffic
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