CN POSTS STRONG 4TH-QUARTER, FULL-YEAR RESULTS
Canadian National reported fourth quarter net income of Canadian $237 million ($157 million), up 11 percent, on revenue of Can $1.39 billion ($925 million).
Operating income improved 8 percent to Can $441 million ($293 million), while operating expenses declined 3 percent to Can $952 million ($632 million). CN's operating ratio improved by 2.4 points to 68.3 percent.
'CN turned in a satisfactory performance during the final quarter of 2000 in the face of a progressively slowing North American economy,' said Paul M. Tellier, president and chief executive officer. 'We more than compensated for the softer revenue performance with strong cost controls and improvements in asset utilization. As a result, the company generated solid increases in operating and net income.
The railroad saw revenue growth in intermodal (up 19 percent), petroleum and chemicals (6 percent) and forest products (5 percent). Automotive revenue was flat while coal revenues declined 19 percent, followed by metals and minerals (7 percent) and grain and fertilizers (3 percent).
For the full year, net income was Can $937 million ($622 million), including a Can $58-million after-tax gain related to the exchange of CN's minority equity investments for common shares in 360networks. Inc. In 1999, net income was Can $751 million, including a $5-million, after-tax gain for changes in accounting policy.
Operating income for the year was Can $1.65 billion ($1.09 billion), up 12 percent on revenue of Can $5.43 billion ($3.60 billion) Operating expense was flat at Can $3.78 billion ($2.51 billion) Operating ratio improved 2.4 points to 69.6 percent.
Business units recording increased revenues were automotive (up 16 percent), intermodal (13 percent), grain and fertilizers (7 percent), petroleum and chemicals (2 percent), and forest products (1 percent). Coal revenues declined 18 percent and metals and minerals, 2 percent.