Canadian National quarterly profit and revenue fall 15.6pc

CANADIAN National Railway (CN) has reported a second quarter net profit fell 15.6 per cent to C$387 million (US$350.25 million), owing to the global downturn in freight volumes.

A statement from the Montreal-based company said that revenues declined 15 per cent year on year to C$1,781 million, with carloads shrinking 22 per cent to C$928,000, and revenue ton-miles falling 14 per cent, with weakness in almost all market segments.

Operating expenses decreased 14 per cent to C$1,198 million on the back of a significant reduction in year on year fuel prices and extensive cost-containment measures in response to lower traffic.

Operating income dropped by 18 per cent to C$583 million, while the operating ratio increased by one percentage point to 67.3 per cent.

"All groups but coal registered double-digit declines in carloadings," said CEO Hunter Harrison. "The biggest declines were in metals and minerals shipments, principally on account of a sharp reduction in short-haul iron ore movements in northern Minnesota, and in automotive and forest products traffic. Intermodal, grain and fertilisers, and petroleum and chemicals saw lesser declines. Coal was a bright spot, however, as a result of higher US shipments resulting from our acquisition of the EJ&E."

Source: http://www.schednet.com