CN records record profit increase
Canadian National Railway Tuesday said it had third quarter profit of C$552 million ($460 million), 14 percent higher than the C$485 million earned in the comparable 2007 period.
Revenue was up 12 percent to C$2.26 billion ($1.88 billion) due to freight rate increases, of which about two-thirds was related to a higher fuel surcharge resulting from year-over-year increases in applicable fuel prices; and higher volumes in specific commodity groups, particularly intermodal, metals and minerals, and coal.
E. Hunter Harrison, president and chief executive officer, said he was “extremely pleased with our results. Operational execution during the quarter was outstanding, with notable gains in network fluidity, productivity and asset utilization, while we enjoyed good revenue growth across most commodity groups.”
“Looking forward, the uncertain economic landscape in North America and around the world will pose challenges to CN and its customers. But we believe CN is well positioned to weather the headwinds.”
He said the company had “growth prospects in intermodal, bulk commodities and energy-related developments in western Canada.”
Five of CN’s seven commodity groups registered revenues gains in the quarter, led by coal (41 percent), metals and minerals (29 percent), intermodal (24 percent), petroleum and chemicals (9 percent), and automotive (3 percent). Forest products revenues declined 2 percent, and grain and fertilizers revenues declined 1 percent.