CN SAYS SECOND-QUARTER INCOME UP 17%
Canadian National said its second quarter net income increased 17 percent to Can $280 million ($179 million) over the adjusted second-quarter net income in 2001.
Operating income increased 10 percent to Can $490 million ($313 million), while revenues rose 11 percent to Can $1.55 billion ($991 million).
The second-quarter and first-half results include business of Wisconsin Central, which CN acquired last October.
'The Wisconsin Central acquisition, and the strong performance of our petroleum and chemicals, automotive and intermodal units drove a 17-percent increase in net income and 15-percent rise in earnings per share for the second quarter,' said Paul M. Tellier, CN president and chief executive officer. 'CN's petroleum and chemicals unit benefited from the inclusion of WC revenues, market share gains and strong sulfur shipments to the United States and to offshore markets.'
Five of CN's seven business units experienced revenue gains in the second quarter: petroleum and chemicals, up 28 percent to Can $271 million ($173 million); forest products, up 24 percent to Can $334 million ($214 million); metals and minerals, 18 percent to Can $138 million ($88 million); automotive, 14 percent to Can $159 million ($102 million); and intermodal, 7 percent to Can $261 million ($167 million). Coal revenues were down 8 percent to Can $81 million ($52 million) while grain and fertilizers was down 7 percent to Can $255 million ($163 million).
Operating ratios for the quarter rose to 68.4 percent, from 68.1 percent in the second quarter of 2001.
For the first-half of 2002, net income was Can $510 million ($326 million), up from an adjusted net income of Can $442 million in 2001. Operating income was Can $896 million ($573 million) compared to Can $829 million. Revenue increased 10 percent to Can $3.06 billion ($1.96 billion).
Net income for the second quarter and first half of 2001 included a Can $62-million after-tax charge for a workforce adjustment program, a Can $71-million after-tax charge to write down CN's investment in 360networks Inc., a Can $110-million deferred income tax recover due to lower corporate tax rates in Canada. All that was offset by a Can $73-million after-tax gain from the sale of CN's 50-percent interest in the Detroit River Tunnel Co.