Quantcast
Channel: Railway Age
Viewing all articles
Browse latest Browse all 16987

CN delivers solid third-quarter results

$
0
0
cn-delivers-solid-third-quarter-results
Written by: Carolina Worrell, Managing Editor

Net income of C$1.01 billion, compared with net income of C$853 million in second-quarter 2014, combined with an operating income increase of 16% and a record-low quarterly operating ratio of 53.8%, resulted in a solid third-quarter 2015 for CN, the railroad reported on Oct. 27, 2015.

CN’s net income was C$1.26 per diluted share compared with C$1.04 per diluted share for third-quarter 2014. Third-quarter 2015 results included an adjusted diluted EPS, which increased 21% to C$1.26 from year-earlier diluted EPS of C$0.86. In addition, third-quarter 2015 operating income also increased by 16% to C$1.59 billion. And CN’s operating ratio for third-quarter 2015 improved by five points to a record 53.8% from 58.8% the year before.

Third-quarter 2015 revenues increased by 3% to $3.2 billion; carloadings and revenue ton-miles each declined by 6%. Revenues increased for automotive (13%), forest products (12%), petroleum and chemicals (3%), intermodal (5%), and grain and fertilizers (2%). Revenues declined for metals and minerals (3%) and coal (23%).

CN says the revenue performance was mainly attributable to the positive translation impact of the weaker Canadian dollar on U.S. dollar-denominated revenues; freight rate increases; and strong overseas intermodal demand and higher volumes of finished motor vehicle traffic; and increased shipments of lumber and panels to U.S. markets.

Revenue ton-miles declined by 6% over the year-earlier quarter. Revenue per revenue ton-mile increased by 10% over the year-earlier period, driven by the positive translation impact of the weaker Canadian dollar and freight rate increases, partly offset by a lower applicable fuel surcharge rate and an increase in the average length of haul.

CN’s operating expenses for the quarter decreased by 5% to C$1.74 billion, mainly due to lower fuel costs and lower casualty and other expenses, partly offset by the negative translation impact of a weaker Canadian dollar on U.S. dollar-denominated expenses.

Luc Jobin, CN Executive Vice President and CFO said, “CN delivered record third-quarter results thanks to strong team execution in safely and efficiently meeting our customers’ needs while recalibrating to the weaker volume environment. With CN’s continued strong performance this year, we are pleased to reaffirm our outlook for double-digit adjusted EPS growth in 2015 versus last year’s adjusted diluted EPS of $C3.76.”


Viewing all articles
Browse latest Browse all 16987

Trending Articles