Montreal, Canada-based Class I railway Canadian National (CN) saw its net income drop 1 percent year-over-year to C$958 million (U.S. $750 million) in 2016 on revenues that rose 7 percent to C$3.2 billion.
CN saw revenues for metals and minerals, coal, intermodal, and automotive rise in Q3.
Canadian National Railway Co. (CN) reported a net income of C$958 million (U.S. $750 million) for the third quarter of 2017, a decrease of 1 percent over the same period last year, while diluted EPS increased 2 percent year-over-year to C$1.27 per share, according to the Montreal, Canada-based Class I’s most recent financial statements.
Revenues increased 7 percent to C$3.2 billion, while revenue ton-miles (RTM) grew 10 percent and carloadings increased by 11 percent to 1.5 million, the railway said.
Individual commodities revenues increased 31 percent for metals and minerals, 23 percent for coal, 12 percent for intermodal, and 4 percent for automotive. Revenues declined, on the other hand, for forest products (2 percent), and grain and fertilizers (1 percent), while petroleum and chemicals revenues remained essentially flat, the company noted.
CN attributed the increase in revenues to higher volumes of traffic in overseas intermodal, frac sand, coal and petroleum coke exports, and Canadian grain, as well as freight rate increases and higher applicable fuel surcharge rates. These increases were partly offset by the negative translation impact of a stronger Canadian dollar, according to the company.
“CN delivered strong third-quarter financial results as we continued to see increased demand across key business segments such as frac sand, intermodal, coal and Canadian grain. I’m proud of what our team has accomplished given the strength and speed of the volume growth we’ve experienced this year,” said Luc Jobin, president and chief executive officer.
“To meet the needs of an expanding North American economy and new growth opportunities, we are increasing investments in our infrastructure and equipment by C$100 million, for a total capital program of C$2.7 billion in 2017,” said Jobin. “During the third quarter, and continuing through the rest of the year, we’ve been hiring across our network, particularly in Western Canada, as we remain focused on delivering superior service to our customers.”
CN now plans to invest approximately C$2.7 billion in its capital program, compared to its July 25, 2017 plan to invest approximately C$2.6 billion in its capital program, of which C$1.6 billion is still targeted toward track infrastructure.