Canadian National last quarter up 2pc, but year down 2pc

CANADIAN National Railway (CN), Canada's largest freight railway, has announced fourth quarter net profit rose two per cent year on year to C$582 million (US$548.83 million).

But whole year profit for the 12 months ending December 31 fell two per cent year on year to C$1.8 billion. Last year's results included after-tax gains of C$194 million from two line-sales; a deferred income tax recovery of C$157 million; and after tax acquisition related costs of C$30 million related to CN's purchase of Chicago's Elgin, Joliet and Eastern Railway Company.

Full-year revenue fell 13 per cent to C$7.3 billion, mainly due to significantly lower freight volumes, and a reduction in the fuel surcharge resulting from year on year decreases in applicable fuel prices and lower volumes. These factors were partly offset by freight rate increases and the positive translation impact of the weaker Canadian dollar on US-dollar-denominated revenues, a company statement said.

The result includes an after-tax gain of C$59 million from a line-sale to Metrolinx, a transit agency in Toronto, and a deferred income tax recovery of C$99 million.

Excluding these items, adjusted fourth-quarter profit amounted to C$424 million, down from adjusted net income of C$531 million for the same quarter a year earlier.

Fourth quarter 2009 revenues declined 14 per cent from a year earlier to C$1.8 billion.

Said CN president and CEO Claude Mongeau: "CN overcame a number of challenges during the fourth quarter, ranging from weather and operational disruptions in western Canada to a five-day strike by locomotive engineers in Canada. In addition, the stronger Canadian dollar adversely affected our earnings. Despite these challenges, the final quarter of 2009 saw continued sequential improvement in CN's traffic levels and an easing in year over year volume comparisons. Carloadings were flat year over year, but up four per cent versus the third quarter of 2009."

Source: www.schednet.com