CN SEES 9% JUMP IN 3RD-QUARTER INCOME
Canadian National reported net income of Canadian $216 million ($143 million) for the third quarter, an increase of 9 percent over the Can $199 million reported in the year-earlier quarter.
Operating income rose 9 percent to Can $407 million ($270 million), while revenue increased 4 percent to Can $1.33 billion ($882 million). The railroad's operating ratio improved by 1.4 percent to 69.4 percent — the best among North American Class I railroads.
“Operating expenses rose by only 1.8 percent in the quarter despite a 44-percent increase in fuel expense,” said Paul M. Tellier, president and chief executive officer of CN.
Four of CN's seven business units saw increased revenue: intermodal and automotive, up 15 percent to Can $240 million ($159 million) and Can $118 million ($78 million), respectively; grain and fertilizers, up 8 percent to Can $265 million ($176 million); and petroleum and chemicals, up 4 percent to Can $225 million ($149 million. Forest products was flat at Can $252 million ($167 million), while metals and minerals declined 7 percent to Can $102 million ($68 million), and coal fell 20 percent to Can $79 million ($52 million).
net income for the first nine months of 2000 was Can $642 million ($426 million), excluding a one-time $58-million after-tax gain related to the exchange of CN's minority equity investments for common stock of 360networks Inc. That compares to Can $533 million in net income for the year-earlier period.
Operating income for the first nine months rose 14 percent to Can $1.21 billion ($800 million), on revenue of Can $4.04 billion ($2.68 billion). Operating ratio improved by 2.4 points to 70.1 percent.