Posts Tagged ‘CN Quarterly financial reports’

CN Reports 2nd Quarter Financial Records

July 27, 2022

Canadian National reported on Tuesday that its second quarter 2022 performance included record revenue and a record operating income.

In a news release, CN said adjusted diluted earnings per share were a record C$1.93, up 30 percent.

CN said its operational performance improved in key operating metrics such as origin train performance, car velocity, through dwell and record fuel efficiency, resulting in a lower operating ratio.

The news release said revenue was C$4,344 million, an increase of C$746 million or 21 percent

The operating income of C$1,769 million rose 28 percent, and record adjusted operating income of C$1,781 million was an increase of 29 percent.

The operating ratio, defined as operating expenses as a percentage of revenues, was 59.3 percent, an improvement of 2.3-points, and adjusted operating ratio of 59.0 percent, an improvement of 2.6-points.

All percentage changes are comparisons with the second quarter of 2021.

The Montreal-based carrier said it expects approximately a 15-20 percent adjusted diluted earnings per share growth in 2022 while seeking an operating ratio below 60 percent.

CN attributed its higher revenues in the second quarter to higher fuel surcharge rates, freight rate increases, higher Canadian export volumes of coal via west coast ports, higher volumes of U.S. grain and the positive translation impact of a weaker Canadian dollar; partly offset by significantly lower export volumes of Canadian grain.

During an earnings call CN CEO Tracy Robinson said the railroad is performing at its highest levels in five years.

“We’ve leaned in to our scheduled operations, improving train performance and service to customers. And we’re seeing the beginning of improvements in velocity,” Robinson said.

CN executives said during the call that the carrier has hired 850 conductors since the end of 2021.

During the quarter CN said it handled record traffic levels in the U.S., thanks partly to a rise in export grain and coal shipments due to the war in Ukraine.

More information is available at https://www.cn.ca/en/news/2022/07/cn-reports-second-quarter-results/

CN Reports 4th Quarter Revenue Record

January 26, 2022

Canadian National said on Tuesday that it recorded a record high $1.6 billion in quarterly operating revenue during the fourth quarter of 2021.

That’s an increase of 11 percent, CN said in a news release, and revenue rose 3 percent to $3.8 billion.

Earnings per share, adjusted for the effect of one-time items, increased 20 percent, to $1.71.

CN said it posted a fourth quarter low operating ratio of 57.9 percent. The operating ratio is the percentage of revenue devoted to operating expenses.

Freight volume fell 10 percent on a carload basis, or 11 percent when measured by revenue ton-miles, the preferred metric of Canadian railroads.

CN CEO Jean-Jacques Ruest said the decline was due to the closure of a mainline in British Columbia due to landslides and a smaller Canadian grain crop.

The affected BC mainline, which CN shares with Canadian Pacific, handled nearly 23 percent of CN’s revenue on any given day, Ruest said.

During 2021, CN said its operating income was up 18 percent to $5.6 billion, Revenue increased 5 percent, to $14.4 billion while earnings per share, adjusted for one-time items, was up 12 percent, to a record $5.94.

The operating ratio for the year was 61.2 percent. CN said it expect the operating ratio in 2022 to be 57 percent. It also is projecting 20 percent growth in earnings per share.

CN CEO Ruest to Retire in January

October 21, 2021

Canadian National CEO Jean-Jacques Ruest will retire in January.

In a news release, CN said Ruest had deferred discussing his retirement plans in order to see through the proposed merger with Kansas City Southern, which was called off after the U.S. Surface Transportation Board rejected CN’s request to place KCS stock in a voting trust while regulators reviewed the merger.

The news release said CN would conduct a global search for a new CEO and that Ruest might stay on in his post beyond January if need be until a new CEO is hired.

Ruest has worked for CN for more than 25 years and been CEO since 2018.

In an unrelated development, CN said it earned during the third quarter of 2021 revenue of CA$3.6 billion, up 5 percent from the same period a year ago; operating income of CA$1.34 billion, up 2 percent; adjusted operating income of CA$1.5 billion, up 8 percent.

Diluted earnings per share were CA$2.37, up 72 percent while adjusted diluted earnings per share were CA$152, an increase of 10 percent.

The operating ratio improved 2.8 points to 62.7 percent. The adjusted operating ratio of 59 percent was a gain of 0.9 points.

CN said operating income and operating ratio were affected by transaction-related costs for the unsuccessful bid to acquire KCS.

CN Says It Has Recovered from Pandemic Downtown

July 21, 2021

Canadian National said this week that its posted gains in second-quarter earnings and traffic, with nearly every traffic category growing in volume.

CN managers during an earning call said the results reflected a recovery from the COVID-19 pandemic-induced downtown.

Operating income skyrocketed by 76 percent, to $1.38 billion, as revenue grew 12 percent, to $3.6 billion.

Adjusted for the impact of one-time items, earnings per share increased 16 percent, to $1.46. The operating ratio was 61.6 percent, down from 75.5 percent a year ago but up 1.2 points when last year’s second quarter is adjusted for the impact of one-time items.

On a carload basis, overall volume was up 14 percent. It was up by 13 percent when measured by revenue ton-miles, the preferred metric of Canadian railroads.

The strongest traffic growth occurred in industrial products, intermodal, and propane traffic.

“Our results reflect broad-based trends and forward momentum across all of our business, and also the enduring power of our vast and diversified CN network,” CEO J.J. Ruest said.

CN said its terminal dwell and car miles per day improved, while average train speed was down 2 percent, to 19.5 mph.

The Montreal-based carrier set a quarterly record for fuel efficiency and posted a record low employee personal injury rate. The train accident rate also declined.

CN continues to say that its outlook for the remainder of the year will be high single-digit volume growth and double-digit growth in earnings per share.

CN Net Income Fell in 1st Quarter

April 28, 2021

Canadian National executives said this week that they expect freight volume growth in the high single digit percentage range this year.

They made the assessment when announcing first quarter financial results that showed a drop in net income.

At the same time CN said it experienced during the quarter record intermodal and grain traffic.

Management expects an improving economy to boost merchandise traffic.

For the first quarter, CN said  net income fell 3.7 percent to CA$974 million, or $1.37 per diluted share, from CA$1.01 billion, or $1.42 per diluted share, in the same period a year ago.

The total revenue of CA$3.5 billion for the quarter was “in line” with the same quarter in 2020, CN said in a news release.

Operating income rose 9 percent to CA$1.3 billion, but adjusted operating income of CA$1.2 billion was down 2 percent.

The statement described the first quarter results as “solid,” and included a year-over-year increase in traffic volume of 5 percent.

During a conference call to discuss the first quarter results, CN executives said they expect double-digit growth in earnings per share, up from between 7 percent and 9 percent.

CN’s first quarter volume was up 7 percent based on carloads or 5 percent based on revenue ton-miles, the preferred metric of the Canadian railways.

“Here at CN, we’re off to a good strong running start,” CN CEO JJ Ruest said during the earnings call.

Intermodal revenue ton-miles was up 19 percent while grain and fertilizers shipments rose 26 percent.

First quarter volume, based on gross ton miles, was a record.

At the same time, average train speed dipped 1 percent. Terminal dwell times held steady and car miles per day were up 5 percent.

During the period train length rose 5 percent, leading to a fuel efficiency improvement of 4 percent.

The operating ratio of was 62.5 percent with an adjusted OR of 66.3 percent for the quarter. A year ago, CN had an operating ratio or adjusted operating ratio of 65.7 percent.

CN Revenue Up 2% in 2020 4th Quarter

January 27, 2021

Canadian National reported this week that fourth quarter 2020 revenues rose 2 percent to C$3.656 billion vs. the same period in 2019.

CN executives said the increase was due to increased shipments of U.S. grain, higher international container traffic via the Port of Vancouver, and freight rate increases.

However, CN said it also had lower applicable fuel surcharge rates and lower volumes of petroleum crude.

Operating income was up 16 percent to C$1.411 billion and the operating ratio fell 4.6 points to 61.4 percent compared with fourth-quarter 2019 results.

Total revenue ton miles were up 10 percent and carloads were up 7 percent in the fourth quarter compared to the fourth quarter of 2019.

Revenues for 2020 fell 7 percent to C$13.819 billion, which CN said was due to lower volumes across most commodity groups, primarily in the second and third quarter due to the COVID-19 pandemic.

CN said these lower traffic volumes were partly offset by freight rate increases as well as record Canadian grain shipments.

Operating income dropped 15 percent to C$4.777 billion, and the operating ratio increased 2.9 points to 65.4 percent vs. 2019.

Total RTMs and carloads were down 5 percent for the year compared with 2019.

CN expects to spend C$3.0 billion in 2021 on capital expenditures and is projecting “mid-single digit volume growth in 2021 in terms of RTMs.

CN Revenue Down 11% in 3rd Quarter

October 21, 2020

Canadian National reported this week that during the third quarter it had revenues of C$3.41 billion (US$2.59 billion), a decrease of C$421 million (US$319 million) or 11 percent when compared with the same quarter of 2019 period.

In a news release, CN attributed the drop in revenues “mainly due to lower volumes across most commodity groups caused by the ongoing effects of the COVID-19 pandemic.”

CN said other factors included lower fuel surcharge rates, which were partly offset by freight rate increases, and increased shipments of Canadian grain.

Revenue ton miles fell 7 percent while freight revenue per RTM fell by 3 percent over the year-earlier period.

Operating expenses were down 8 percent to C$2.04 billion (US$1.55 billion). CN said this was prompted by lower fuel and labor costs, and fewer purchased services and material expenses.

“The decrease in the first nine months was partly offset by a loss on assets held for sale in the second quarter, resulting from the company’s decision to market for sale for on-going rail operations, certain non-core lines,” CN officials said in a statement.

The third quarter also saw CN experience increased traffic compared with the second quarter of this year. However, overall demand remained below 2019 levels.

CN said by the end of the third quarter some commodities had recovered at or close to 2019 levels.

This included intermodal traffic, lumber and panels used in home renovations and new home construction, and export grain and fertilizers.

Such commodities as finished vehicles, industrial products, petroleum and chemical products, coal, and frac sand remained below pre-pandemic levels.

 “As we look at the fourth quarter and beyond, we continue to see sequential improvements and momentum leading us to have a cautious optimism about the future,” CN President and CEO JJ Ruest said in a statement. “We remain confident in our ability to continue delivering long-term shareholder value.”