CANADIAN NATIONAL REPORTS 41% JUMP IN FIRST-QUARTER NET INCOME

CANADIAN NATIONAL REPORTS 41% JUMP IN FIRST-QUARTER NET INCOME

   Canadian National said first-quarter net income rose 41 percent to $196 million, excluding non-recurring items.

   Including a one-time $58-million after-tax gain, first-quarter net income would be $254 million.

   Operating income for the latest quarter rose 29 percent to $382 million. CN's operating ratio improved by 4.6 percentage points to 72.2 percent.

   First quarter revenue rose 8 percent to $1.37 billion, with carloads rising 10 percent to 952,000. Despite increased workload and a 63-percent jump in fuel expenses, operating expenses rose only 2 percent to $990 million.

   “Five of CN's seven business units registered revenue gains,” said Paul M. Tellier, CN president and chief executive officer. “We benefited from strong exports of both Canadian grain and U.S. soybeans. Strong Canadian potash exports, particularly to offshore markets, also contributed to revenue growth.”

   Business units posting revenue growth in the first quarter were fertilizers, up 26 percent; automotive, 25 percent; intermodal 11 percent; metals and minerals, 6 percent; and forest products, 3 percent. Coal revenue declined 23 percent and petroleum and chemicals revenues slipped 2 percent.