CN Net Income up 12% in 1st Quarter

Canadian National’s first quarter 2017 net income increased by 12 percent to C$884 million, while diluted earnings per share increased 16 percent to C$1.16, compared with the first quarter of 2016.

Adjusted net income increased 11 percent to C$879 million, with adjusted diluted EPS increasing 15 percent to C$1.15.

Operating income increased 7 percent to C$1.3 billion. Revenues increased by 8 percent to C$3.2 billion. Carloadings increased 9 percent and revenue ton-miles increased 14 percent. Operating expenses increased 9 percent to C$1.9 billion, mainly due to higher fuel prices and higher costs due to increased volumes of traffic. The operating ratio of 59.4 percent, was an increase of 0.5 of a point from the prior-year quarter. Free cash flow was C$848 million, up from C$584 million in the year-earlier quarter.

Revenues increased for coal (39 percent), grain and fertilizers (16 percent), metals and minerals (16 percent), automotive (10 percent), intermodal (7 percent), and petroleum and chemicals (1 percent). Revenues declined for forest products (3 percent).

CN said the increase in revenues was mainly attributable to higher volumes of Canadian and U.S. grain, frac sand, coal exports, overseas intermodal traffic, and finished vehicles; freight rate increases; and higher applicable fuel surcharge rates. These factors were partly offset by the negative translation impact of a stronger Canadian dollar on U.S.-dollar-denominated revenues. Rail freight revenue per carload decreased by 1 percent.

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